Center For Responsible Lending: Subprime/Subpar (Pt. 2)

Dean Starkman defends CRL, trips over self

But let’s look at his case against the Forbes article. It’s full of holes. Click here if you missed part one of this story.

• “Payday loans, by the way, are even ranker than subprime mortgage lending, which, despite years of diligent research in sub-basement laboratories, has yet to find a way to charge the working poor 400 percent annual interest rates, as payday lenders do.

The subprime mortgage crisis has hit hundreds of thousands of families in America. It has put hundreds of thousands of people out of their homes, Mr. Starkman. Do not condescend to say that payday loans have had the same effect. It insults the intelligence of your readers. We already know that payday loans are not annual loans, so the 400 percent APR figure you bandy about is a propagandist’s toy. Self-Help, Eakes’ baby and forerunner/forefather to the Center For Responsible Lending, had everything to do with the subprime crisis and America’s economic collapse. Eakes admits this. And since studies have shown that 90 percent of payday loan customers pay on time, that 400 percent APR remains a myth. Try again, Dean.

Payday loans, Goldman Sachs… these two are NOT the same

• “The financial-services industry - from the payday crews to Goldman Sachs - is rightly being blamed for breathtaking corruption that led to the cratering of the U.S. economy and global credit markets.”

Based upon your career history previous to this article, I would conclude that you make a habit of such ridiculous comparisons. But there it is. You are placing payday lenders and Goldman Sachs in the same boat. And of course, you neglect to mention Self-Help, Herbert Sandler or Marvin Eakes‘ role in the subprime meltdown. Payday loans don’t come anywhere close to that kind of damage, they are government-regulated and they inform customers of all fees up front. No surprises. Click here for more of Starkman’s self-satisfied but errant analysis. ... click here to read the rest of the article titled "Center For Responsible Lending: Subprime/Subpar (Pt. 2)"