Payday lenders find new home online; interest rates hit 1000 percent
News from The Missoulian:

Want to talk to somebody at a payday loan operation? Good luck.

Most payday lending company phone numbers are disconnected, others now belong to different businesses.

A customer service representative did answer at EZ Money Check Cashing in Missoula last week, explaining the company does check cashing and tax filings, but no longer offers payday loans.

The reason is simple, and Bernie Harrington, owner of EZ Money Check Cashing, explained it this way: He closed three stores and cut services at others after Montana voters passed ballot Initiative 164 in November 2010. The initiative capped at 36 percent the interest fees and charges that payday, title and retail installment lenders can assess customers.

Supporters of I-164 called payday loan companies “predatory,” as lenders could charge up to 400 percent on the short-term loans.

Opponents of I-164, mostly payday lenders like Harrington, said the 400 percent was a misrepre…………… continues on The Missoulian

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With age comes wisdom — and a better credit score, study finds
News from Dallas Morning News (subscription):

If age equals wisdom, then it stands to reason that we should become more financially responsible as we grow older.

And as we mature, that should translate into higher credit scores, a new study finds.

CreditKarma.com, which provides consumers with free credit scores, took a look at the relationship between debt and credit scores, and how it changes during a person’s lifetime.

What it found was that as credit history lengthens, credit scores typically increase.

“We took a sample of several hundred thousand users and we charted their overall debt levels, along with the average credit scores, and we grouped them by the age,” said Ken Lin, chief executive of CreditKarma.

What CreditKarma discovered was that the older you are, the higher your credit score tended to be.

“Age and your experience in life tend to lend a lot to your credit score,” Lin said. “Just like everything else, you tend to get better as you get older, and that’s very tru…………… continues on Dallas Morning News (subscription)

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