Policy & Legislation
HIGHLIGHT
Battles rage across the country between the payday lending industry and coalitions of citizens groups who are increasingly insisting they will not accept 400 percent interest lending. Fifteen states plus the District of Columbia have outlawed triple-digit interest, and two states rejected them in ballot measures last November – Ohio and Arizona, which becomes the sixteenth state to put a stop to the predation through an interest rate cap as of July 2010.
Other than protecting military families with a 36% APR cap on small predatory loans, Congress has not yet moved to expand reforms across the country, and some big national banks are beginning to get into the business with loans that are virtually indistinguishable from storefront payday loans.
- High-Cost Payday Lending Traps Mississippi Borrowers
July 26, 2010 - Payday lenders pose as brokers to evade interest rate caps
July 16, 2010 - Mainstream banks making payday loans
February 24, 2010 - National Bank Regulator Enabled Overdraft Abuses
February 24, 2010 - Interest Rate Survey
March 30, 2009 - A 36% APR Cap on High-Cost Loans Promotes Financial Recovery
January 31, 2009 - Ohio Payday Hearing
May 7, 2008 - Comment: Implementation of Military Lending Amendment
February 26, 2008 - Springing the Debt Trap-Exec Summary
December 13, 2007 - CRL Critique of “Payday Holiday: How Households Fare After Payday Credit Bans” by Donald P. Morgan and Michael R. Strain
December 10, 2007
