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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- FDIC Promises Investigation of Bank Payday Lending
May 31, 2012The FDIC has promised that to make investigation of bank payday lending a priority investigation. In response to a letter submitted by 250 advocates, Acting Chairman Martin Gruenberg said the banking regulator is concerned that banks are violating guidelines for fair and affordable products.
- Comments to the Consumer Financial Protection Bureau on Payday Lending Abuses
April 23, 2012Comments to the Consumer Financial Protection Bureau on payday lending abuses on behalf of several organizations concerned about the documented abuses of payday lenders.
- Letter to Bank Regulators: Stop Bank Payday Lending
February 22, 2012Two hundred and fifty national, state and local organizations and individual advocates have asked bank regulators to stop banks from making predatory payday loans, which carry triple-digit annual interest rates of as much as 400 percent.
- Predatory Payday Lending
by Banks on the Rise
December 2, 2011Four big banks are making payday loans to customers, stripping funds from their checking accounts in a cycle of debt near 400% annual interest.
- Comment to the Federal Reserve on Notice by Capital One to Acquire ING Bank
September 20, 2011The Center for Responsible Lending commented on Capital One's proposed acquisistion of ING Bank at a public meeting held by Federal Reserve on September 20, 2011.
