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: RIN 3064-AC95, Proposed Rulemaking on Federal Preemption
December 13, 2005
The Center for Responsible Lending submits these comments on the proposed rules, ere part of a larger package of preemption rules urged upon the FDIC by the Financial Services Roundtable.
- FDIC's Revised Examination Guidance on Payday Lending
March 14, 2005
Analysis of the FDIC guidance that stopped the "rent-a-charter" scheme that payday lenders were using to operate in states where they were illegal. FDIC issued strict guidelines under which their insured banks could partner with payday lenders.
- Access Denied: Payday Loans are Defective Products
January 5, 2005
Payday lenders offer defective product, claiming if fills need for access to credit
- Require TILA Disclosures For Overdraft Loans
June 14, 2004
CRL ask the FED to put overdraft loans under the Truth in Lending Act under the grounds that they are an extension of credit.
- Payday lenders cannot avoid state laws by partnering with banks
April 23, 2004
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.