During Financial Literacy Month, California Residents will Learn about Payday Loan Lending
By J.J. CameronPayday Loan Writer
When it comes to financial mistakes, California is often trying to look out for its citizens. A few weeks ago, we reported on warnings the state gave out concerning military payday loans.
Now, the state Department of Financial Institutions (DFI) and the state Department of Corporations (DOC) is partnering during this year’s annual California Financial Literacy Month to highlight the month’s theme of “Prepare Now for a Strong Financial Future.”
Efforts to coordinate and expand financial literacy will help to raise awareness of the importance of financial education and consumer protection. Californians’ consumer debt levels and low savings rate underscores the great need for consumers to obtain the necessary skills and financial education to improve their economic futures.
Would this include applying for a payday loan? Many wouldn’t think so.
Californians’ personal income grew 1.6 percent in the fourth quarter of 2005 from the previous quarter, according to estimates released on March 28, 2006, by the U.S. Department of Commerce. Despite the growth in personal income, the total loans to individuals during the past year, including credit card debt, grew by an 18.7 percent annual rate, based on information by Federal Deposit Insurance Corporation’s insured financial institutions in California.
In addition, the U.S. Department of Commerce reported that the personal savings rate nationwide was a negative 0.7 percent in January 2006.
“Financial education not only protects our citizens from fraud, but also empowers them to achieve their dreams,” said acting Corporations Commissioner Wayne Strumpfer. “Serious financial issues can negatively affect consumers economic well-being and prosperity.”
During California Financial Literacy Month, DFI and DOC will be involved in events and activities to highlight such financial literacy themes as savings and investment, fraud and financial abuse, credit and payday loan lending, and financial readiness.
The state has taken action in the past against payday loan stores. This initiative, however, will be focused on educating individuals, not filing any more lawsuits.
