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Pawn to cushion payday lenders from regulatory blow
Payday lenders that have substantial pawn operations are better positioned to absorb the blow from proposed U.S. regulations aimed at cracking down on an industry that has been criticized for saddling borrowers with debt they cannot repay.
The Consumer Financial Protection Bureau has proposed a number of guidelines for the industry, including limiting the number of loans per customer to six per year.
The move is expected to hurt lending volumes and revenue by as much as 75 percent, as payday lenders make a majority of their money from borrowers who take out 10 or more loans per year.
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Operation Choke Point strikes again: Banks shut down more businesses
Operation Choke Point, the Obama administration's under-the-radar project involving the Department of Justice, the Consumer Financial Protection Bureau, and the Federal Deposit Insurance Corporation whose goal is to shut down industries it does not like by "choking off" their banking relationships, is taking aim at another business.
Brian Lynn, CEO of a Jacksonville, Florida based payday lending company that operates 26 stores in Florida, Georgia and Alabama under the Speedy Cash and Lending Bear brands, has been in business for more than 20 years. He confirms to Breitbart News that two major banks closed his company's accounts with no explanation in 2014.
Pawnbrokers fight back in wake of bank account closures
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The National Pawnbrokers Association argues that its members have been unfairly swept up in the Justice Department initiative known as Operation Choke Point. But banks say Choke Point's not to blame: they're closing the accounts of cash-intensive businesses in order to ensure compliance with anti-money-laundering rules.
Small businesses split on religious freedom laws and marijuana
Small businesses are split on whether they would support an initiative similar to Indiana's controversial religious freedom law, according to a new Manta poll.
When asked if they would support a similar initiative in their own state, 53 percent of small business owners polled said they would not, while 47 percent said they would.
Pawnbrokers face tough competition as economy improves
Recession brought middle-class customers to pawnbrokers but there is now more competition for retail space — and from payday lenders.
The industry claims to cater for up to 11 million people who it says do not have access to bank loans. In recent recessionary years its core customers were joined by a new influx from the middle classes, also in need of short-term finance.
"Obviously the banks had not been lending like they were so it became a credible source of alternative finance for larger numbers of people," said Ray Perry of the National Pawnbrokers Association, London, U.K.
Convicted felon gets 10 years for selling gun to pawnshop
A convicted felon has been sentenced to prison for 10 years for selling a handgun to a Gulfport, Mississippi pawn shop.
The Sun Herald reported that Willie Ed Smith Jr., 32, is the man authorities said tried to run out of a courtroom recently when an alarm signaling a bomb threat sounded while his jury verdict was being read.
How hackers can cash in on online payday loans
Sky-high rates aren't the only worry for cash-strapped consumers. Online lenders specializing in payday and other short-term, high-interest consumer loans are also drawing the attention of cyber-criminals who are taking people's account information and using it to drain their savings, apply for credit cards, or perform other forms of theft.
5 things you should know about The Collector's Zone of Jackson
The Collector's Zone of Jackson, Michigan, is affectionately known to some as "The Nerd Store," according to Manager David Young. "I don't mind. Being nerdy is in these days," Young said. "'The Big Bang Theory' has kind of made nerdy in. 'Pawn Stars,' 'Comic Book Men' — all of these reality shows also are based around what I do."
Young describes the store as "a poor man's 'Pawn Stars.'"
First Data and Sam's Club collaborate to fuel small business growth
Small businesses are the heart of enterprise around the world. In line with its efforts to help clients grow their businesses, First Data, the global leader in payment technology and services solutions, announced an extended agreement with Sam's Club, a leading membership club for the small business community, to improve member access to First Data solutions and technologies. First Data will increase its presence in Sam's Club locations around the country by staffing on-site business consultants in Sam's Club's locations.
UK pawnbrokers raise money for charity
H&T Pawnbrokers collected and donated 5,000 Easter eggs alongside raising $1,500 for local and national children's charities over the Easter bank holiday weekend.
H&T Pawnbrokers chief executive John Nichols said: "We are committed to continuously serving our local communities and pleased to have helped so many families with this Easter Collection Appeal."
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