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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- Oppose HR 1909--Don’t Undermine State, Federal Consumer Protections
Published: Jul 5 2012 Issue: Payday Loans
HR 1909 will move oversight of non-bank lenders from the CFPB to the OCC, allow the OCC to charter nonbank lenders like those that offer 400% payday loans, and preempt stronger state laws nationwide.
- FDIC Promises Investigation of Bank Payday Lending
Published: May 31 2012 Issue: Bank Payday Loans, Payday Loans
The 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...
- Comments to the Consumer Financial Protection Bureau on Payday Lending Abuses
Published: Apr 23 2012 Issue: Consumer Financial Protection Bureau, Payday Loans
Comments 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
Published: Feb 22 2012 Issue: Payday Loans
Two 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...
- Predatory Payday Lending
by Banks on the Rise
Published: Dec 2 2011 Issue: Payday Loans
Four big banks are making payday loans to customers, stripping funds from their checking accounts in a cycle of debt near 400% annual interest.