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.

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

Support the Internet Freedom Preservation Act of 2009

Early this week, Representatives Ed Markey and Anna Eshoo introduced the Internet Freedom Preservation Act of 2009. It's common sense and it's fair, but just watch as the telecoms now do everything they can to destroy it. Why do we need this Act? Here are a few recent examples:

The issue of unrestricted Internet access has gained new traction on Capitol Hill in the wake of reports that Apple and AT&T are each blocking or preventing users from accessing services for the mega-popular iPhone, which is exclusive to AT&T at the moment. FCC chairman Julius Genachowski recently sent letters to Apple, AT&T, and Google asking why Google Voice, the company's popular free calling service, was rejected for use on the iPhone.

Representatives Markey and Eshoo made this statement about the need for this net neutrality bill:

The Internet is a success today because it was open to everyone with an idea,” said Rep. Markey. “That openness and freedom has been at risk since the Supreme Court decision in Brand X. This bill will protect consumers and content providers because it will restore the guarantee that one does not have to ask permission to innovate. The Internet has thrived and revolutionized business and the economy precisely because it started as an open technology,” Rep. Eshoo said. “This bill will ensure that the non-discriminatory framework that allows the Internet to thrive and competition on the Web to flourish is preserved at a time when our economy needs it the most.”

Here's a summary of the bill:

H.R. 3458, the Internet Freedom Preservation Act, is designed to assess and promote Internet freedom for consumers and content providers. The bill states that it is the policy of the United States to protect the right of consumers to access lawful content, run lawful applications, and use lawful services of their choice on the Internet while preserving and promoting the open and interconnected nature of broadband networks, enabling consumers to connect to such networks their choice of lawful devices, as long as such devices do not harm the network. The legislation also directs the Federal Communications Commission (FCC) to promulgate several rules relating to enforcement and implementation of the legislation, including rules to ensure that providers of Internet access service fulfill the duties and disclose meaningful information to consumers about a provider’s Internet access service in clear, uniform, and conspicuous manner.

To do your part, click on this tool to determine the phone number of your representative, then call to ask for his or her position on this bill. You are then given a further option to report the result to Free Press/Save the Internet. I made the call and spoke directly with a legislative assistant. She didn't know the answer (re Representative Russ Carnahan), but promised to find out and report back to me. The entire process only took a couple minutes. You can also sign a Petition that will be delivered to Congress by visiting Save the Internet. Again, it only takes a minute. Your grass roots investment of a few minutes can counteract tens of millions of dollars the telecoms will spend on lobbyists, misleading media campaigns and wads of cash that the are putting into the palms of your elected representatives. Be empowered!

Continue ReadingSupport the Internet Freedom Preservation Act of 2009