Policy & Legislation
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.
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- Comments on proposed Regulation DD amendments re Overdraft Lending
July 18, 2008America, Consumers Union, and the National Consumer Law Center, provide the following comments regarding the Federal Reserve Board’s proposed rule to amend Regulation DD pursuant to the Truth in Savings Act (TISA).
- Require opt-in for overdraft
June 13, 2008CRL discusses importance of requiring banks to get explicit permission from customers before enrolling them in high-cost overdraft.
- Ohio Payday Hearing
May 7, 2008Testimony of Uriah King, Center for Responsible Lending before the Ohio Senate Finance and Financial Institutions Committee
- Comment: Implementation of Military Lending Amendment
February 26, 2008Comments on Implementation of Limitations on Terms of Consumer Credit Extended to Service Members and Dependents
- Banks in California cannot deduct overdraft fees from Social Security benefits
December 14, 2007CRL's amicus briefs in support of the plaintiff class in Miller v. Bank of America. CRL argues that California law concerning banks' set-off powers forbid banks from deducting overdraft fees from public benefit payments, including Social Security benefits, and this law is not preempted by the National Bank Act or regulations issued by the Office of Comptroller of the Currency. The trial court entered a verdict in favor of the plaintiff class; CRL participated in this case before the California Court of Appeals, First Appellate Division, and the California Supreme Court.
