As states wrestle with how to “reform” payday lending, a CRL analysis shows that curtailing payday lending does not increase overdraft loans fees.
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- New York Times Article on Banks Aiding Payday Loans: There's Even More to the Story
February 26, 2013
On February 23, the New York Times published an article describing how some banks enable Internet payday lending. In this brief, CRL provides additional legal context to supplement that article. Bottom line: We need to continue passing state laws that provide strong enforcement tools, and federal regulators need to use their full authority to stop predatory payday loans.
- Map of US Payday Stores per Household
November 1, 2010
This color-coded map of payday stores by household reveals a disturbing pattern. Southern states are among the most targeted for these high-cost, low-dollar loans.
- High-Cost Payday Lending Traps Mississippi Borrowers
July 26, 2010
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 percent cap on annual interest rates. Payday loans carry rates of up to 572 percent and cost families $270 million in fees every year.
- Payday lenders pose as brokers to evade interest rate caps
July 16, 2010
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 repeatedly evade these rules, finding new ways to maintain business as usual and continue to offer short-term loans with triple-digit interest rates. The latest form of subterfuge is one in which the payday lenders position themselves as brokers, seeking licensure under state-level laws designed to regulate credit repair organizations. Under this scheme, payday lenders charge the maximum interest rate allowed on the underlying loan plus an additional "broker" fee, typically ranging from $20 to $25 per $100, resulting in loans with an effective annual percent interest (APR) in excess of 500%.
- Ohio Payday Hearing
May 7, 2008
Testimony of Uriah King, Center for Responsible Lending before the Ohio Senate Finance and Financial Institutions Committee