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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- Banks in California cannot deduct overdraft fees from Social Security benefits
January 22, 2007
CRL'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.
- Comment: Proposed FDIC Survey of Overdraft Loan Programs
October 16, 2006
Proposed FDIC Survey of Overdraft Loan Programs
- Georgia's Payday Loan Law: A Model for Preventing Predatory Payday Lending
June 29, 2006
Brief analysis of Georgia's law preventing payday lenders from circumventing their consumer credit interest rate cap and other protections.
- North Carolinians can sue abusive payday lenders without going to arbitration
June 19, 2006
CRL's amicus brief in support of the plaintiffs in Kucan v. Advance America. CRL argues that consumers who received payday loans, which have been declared illegal by North Carolina regulators, should not be required to arbitrate their claims against the lenders before the North Carolina Court of Appeals.
- Payday lenders cannot avoid state laws by partnering with banks
April 19, 2006
CRL's amicus brief in support of Georgia Attorney General Baker in Bankwest v. Baker. CRL argues that the Federal Deposit Insurance Act does not provide payday lenders with the benefit of preemption when they partner with state chartered banks in making payday loans. CRL participated in the case before the U.S. District Court and the U.S. Court of Appeals for the 11th Circuit; the 11th Circuit determined the issue was moot, in an April 2006 opinion published at 446 F.3d 1358, when the Federal Deposit Insurance Corporation changed its regulations to prohibit state banks from partnering with payday lenders.