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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- 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.
- Comment to the Federal Reserve on Notice by Capital One to Acquire ING Bank
Published: Sep 20 2011 Issue: Overdraft Loans
The 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.
- AFR Sign-on to OCC on Overdraft and Bank Payday
Published: Aug 9 2011 Issue: Overdraft Loans, Payday Loans
Consumer groups fear OCC proposed guidance may legitimize and facilitate the spread of payday lending by national banks, and banks would continue abusive overdraft practices—harming bank customers,...
- Comments to OCC on Overdraft and Bank Payday Loans
Published: Aug 9 2011 Issue: Overdraft Loans
CRL filed comments to the OCC on August 8, 2011 urging them to strengthen rules on overdraft and bank payday lending. Automatic debit overdrafts, re-ordering of account transactions and direct...