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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- Joint Letter in Support of FDIC Overdraft Proposals September 2010
Published: Sep 27 2010 Issue: Overdraft Loans
CRL and a cross-section of civil rights, labor, consumer, housing, community, business, and sustainable and responsible investor groups sent a joint letter to the FDIC expressing support for...
- Federal Judge Orders Wells Fargo to Reimburse California Customers
Published: Aug 10 2010 Issue: Overdraft Loans
Federal court finds Wells Fargo's posting practices amounted to gouging and profiteering. This 90-page brief addresses Wells' checking account overdraft practices.
- High-Cost Payday Lending Traps Mississippi Borrowers
Published: Jul 26 2010 Issue: Payday Loans
The state of Mississippi is gearing up for a legislative battle as the expiration of a law approaches in 2012. If the law sunsets as scheduled, payday lenders will no longer be exempt from a 36...
- Payday lenders pose as brokers to evade interest rate caps
Published: Jul 16 2010 Issue: Payday Loans
In recent years, a growing number of states have enacted interest rate caps and other protections to eliminate abusive payday lending practices that trap consumers in long term debt. Payday lenders...
- Comments on NCUA's Notice of Proposed Rulemaking on Short-term, Small Amount Loans
Published: Jul 6 2010 Issue: Payday Loans
Comments of the Center for Responsible Lending on the Notice of Proposed Rulemaking on Short-term, Small Amount Loans from National Credit Union Administration--12 CFR Part 701--RIN 3133-AD71....