Unconscionable credit card fees

How onerous are credit card fees. Consider this example described by the NYT:

Robert Triozzi . . . found that over a period of several years, Ms. Owens had paid nearly $3,500 on an original balance of $1,900. But Discover was suing her for $5,564, mostly for late fees, compound interest, penalties and other charges. He called Discover’s actions “unconscionable” and threw the case out.

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Five minutes is all it takes to help cap Missouri payday loans at 36%

As I indicated here, Missouri is considering a 36% rate cap for payday loans. Currently, payday lenders often charge 400% and 500% interest on such loans that are financially devastating to the poor and the working poor (Missouri’s 9% “usury” cap does not apply to payday loans). Bill 2116 is now pending before The House Committee on Financial Institutions, which is chaired by Republican State Representative Mike Cunningham. This important bill will not get a hearing unless Mr. Cunningham decides to grant a hearing, at his discretion. This single bill, HB 2116, “combines two bills filed by Representative Mary Still in January into one bill dealing with both annual percentage rates (APR) caps and restrictions of nursing homes offering payday services to employees.” Here’s how you can help. Please consider writing to Mr. Cunningham today, requesting him to hold a hearing regarding Bill 2116, to consider capping Missouri payday loans at 36% interest. Your letter can be two sentences, or you can spell out your reasons in more detail. Mr. Cunningham can be reached at mike.cunningham@house.mo.gov . His snail mail address is:

Representative Mike Cunningham 201 West Capitol Avenue, Room 411-2 Jefferson City MO 65101 Office Phone: 573-751-3819 Fax: 573-526-1888 Even a small number of emails, faxes or letters will make a big difference. If you want to be part of a citizens’ movement cap interest rates of payday loans at 36%, please take a moment to write to Mr. Cunningham. I can’t emphasize enough that your single email, fax or letter could be the difference between this bill getting a hearing, or nothing being done. As for the detailed reasons for imposing a rate cap, see my earlier post on the proposed legislation. I have also inserted (below) a letter written by John Campbell (an attorney with whom I work). Thank you so very much for considering this. Please do consider sending me a copy of any emails you send to Mr. Cunningham. [Letter from John Campbell to Mr. Cunningham]

Representative Cunningham:

I am writing to request that the House Committee on Financial Institutions grant a hearing on Bill 2116, a bill to limit the interest rate on payday loans to 36%.

I have extensive personal experience with payday loans. I am an attorney, and I spend much of my time representing consumers. In the course of my practice, I have talked with dozens of payday loan borrowers. Their stories are remarkably similar. Payday loan borrowers are generally low wage earners with high school degrees or less, and they are typically in desperate situations when they go to a payday lender. In my experience, payday loans lead to create a debt cycle that is difficult for most borrowers to escape.

[more . . . ]

Continue ReadingFive minutes is all it takes to help cap Missouri payday loans at 36%

And it’s causing senseless violence and wasting of tax dollars up here too

Mexico is the biggest supplier of marijuana to the United States, and the illegal drug trade is tearing Mexico apart.

Mexico has been wracked by murders connected to the drug trade. Last year, it suffered more than 6,500 drug-related killings, triple the number in 2007. And 2010 looks worse. As of mid-March, more than 2,000 people have died in drug-related homicides – which puts Mexico on pace for more than 10,000 such deaths this year. That's more than one every hour.
The linked article (from the Chicago Tribune) argues that California's upcoming ballot initiative legalizing marijuana would be the worst nightmare of the Mexican drug cartels. For the terrible numbers from Mexico at a glance, see here.

Continue ReadingAnd it’s causing senseless violence and wasting of tax dollars up here too

Ada Lovelace Has A Day

I just discovered that there is a day for this brilliant woman. Ada Lovelace was the daughter of Lord Byron, a scholar, and wrote what is arguably the very first computer program in an essay about Charles Babbage. Of course, since she was a woman at a time when women were considered not to have either brains or rights, she would have been seen as an anomaly at best, a monster at worst. Since she had some position, however, she has not been forgotten or dismissed. Warning: personal opinion follows. Women who denigrate the idea of Feminism and fail to understand how tenuous their position is vis-a-vis history cause me heartburn. If they think about it at all, they seem to believe Woman As Property happens in the Third World and nothing like that can happen here (wherever the particular Here happens to be). But then you run into something like this. One paragraph from this report says it all: Females do not have voting privileges, but are generally allowed to speak at meetings, according to Klaetsch. Sunday’s meeting was the first time in recent history that St. John’s Council President Don Finseth exercised his authority to prevent females from speaking, church members say. This is in Wisconsin. Recently. I grant you, this is not a state practice, but in these times when so many people seem to feel that religion trumps civic law, it’s a disturbing thing to behold. The question in my mind is, why don’t all the women there pick up their marbles and leave? Because they either buy into the second class status accorded them or they like something about the condition they inhabit. Western women have it easy in such matters—no one will stone them if they get a little uppity. For them, this is a “lifestyle” choice, at least functionally. In parts of the Middle East and Africa it’s life or death. Back when I was in high school, in the supposedly enlightened United States of America, in 1971, I took an architectural drawing class. The room was filled with boys. All boys. One girl was taking the class. Where was she? The teacher put her in a separate room, the supply room at the back, with her own drafting table and tools. Why? Because the morons inhabiting the rest of the class wouldn’t leave her alone, wouldn’t let her do her work, teased her, ridiculed her, abused her, told her she was weird, unnatural, a lesbian, that she wanted to be a man, that all she needed was a good screwing and she’d get this crazy notion of being an architect right out her system. I heard this, witnessed some of it. It made me profoundly uncomfortable at the time, but I didn’t understand it other than as the same run-of-the-mill bullying that I myself had been subjected to all through grade school. But it went beyond that, I now see, because what she did ran counter to some idea of what the relative roles of men and women are “supposed” to be. Did the boys indulging the abuse understand that? No, of course not. They were parroting what they’d grown up seeing at home and elsewhere, with no more reflection or self-awareness than the hardwired belief that Real Americans all love baseball that Communism was automatically evil and John Wayne was just shy of the second coming. Analysis would be the natural enemy to a traditional view that maintained an absurd status quo and should therefore be resisted, hence anyone among their peers that preferred reading to sports was also an enemy. So celebrate Ada Lovelace Day. No one, male or female, should accept restrictions imposed by cant and tradition and national dogma. But until it is entirely recognized that we are all of us People first, male and female next, and that equal rights accrue to people, not types, none of us are safe in our predilections and ambitions.

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Welcome to Prom Night

Constance McMillen wanted to go to her high school prom. Like most students in the United States, she doubtless saw the event as the capstone of four years of effort, a gala event for students that represents a reward for getting to the end of their senior year and, presumably, graduating not only from high school but into adulthood. One night of glamor and revelry, dressed at a level of style and affluence many might never indulge again, to celebrate the matriculation into the next level of independence. A party where students can show themselves—to their peers and to themselves—as adults. It has become something more, probably, than it was ever intended to be. Patterned after high society “debuts” at which young ladies of good breeding (and potential wealth) are introduced to Society (with a capital “S”) in a manner that, when stripped of its finery and fashionable gloss, is really a very expensive dating service, with the idea of creating future matches between “suitable” couples, the high school prom is a showcase, a public demonstration of, presumably, the virtues of a graduating class. Over the last few decades, even the less well-off schools strive to shine in what a prom achieves. Instead of a local band in the high school gym, with bunting and streamers and colored lights to “hide” the fact that normally gym class and basketball are performed in this room, the prom has become elevated to a decent hotel with a ball room, a better-priced band (or a DJ), and all the attributes of a night on the town in Hollywood. Tuxedos and gowns are de rigueur and students’ families spare no expense to deck their children out in clothes they really often can’t afford. Limousines transport the budding fashionistas and their knights errant to the evening’s festivities and you know this cost a fortune. Students may be forgiven for believing that it’s for them. In its crudest terms, the prom is for the community, a self-congratulatory demonstration of how well the community believes it has done by its youth. It is a statement about what that community would like to see itself as.

Continue ReadingWelcome to Prom Night