Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- Town Adopts Regulations for Payday Lenders
Star Local News 16 Jul 2013
In Texas, the Flower Mound Town Council recently adopted an ordinance that restricts payday and auto title lenders. Town attorney Terry Welch said the interest on these types of loans is very high and that loopholes in state law allow rates to exceed what is technically permitted.
- A Way Out of a Lending Quagmire
South Bend Tribune 14 Jul 2013
University of Notre Dame undergraduates are leading an initiative to rescue borrowers in South Bend, Ind., from predatory lending traps. The Jubilee Initiative for Financial Inclusion (JIFFI) was launched in March, when it began to make installment loans to three clients...
- Closing the Loophole for Minnesota's Largest Payday Lenders
Public News Service 12 Jul 2013
A group of faith leaders in Minnesota, together comprising the Joint Religious Legislative Coalition, will pursue legislation to close a loophole that lets payday lenders charge high interest rates in the state. Rev. Alison Killeen, director of organizing and practical theology for the coalition, says consumers who use such lenders are often vulnerable.
- Valley Community Bankers Say Payday Loans a No-Go
Fresno Business Journal 10 Jul 2013
Although former Consumer Financial Protection Bureau Deputy Director Raj Date called on banks to create an affordable payday loan system, community bankers in California's Central Valley are opposed to doing so. They say there is no demand for it, and regulations would make such a venture unprofitable.
- Rhode Island Payday Lending Reformers Call Foul
GoLocalProv.com (RI) 10 Jul 2013
In Rhode Island, payday lending reform supporters clashed with House leaders on what is being termed a "false compromise" regarding legislation to reduce interest rates on the short-term loans. Although Margaux Morriseau of the Coalition for Payday Lending Reform says a compromise was reached with House policy staff, the proposed legislation was never added to the calendar.
- Trussville Passes 2nd Moratorium on Payday Lenders and Check Cashing Businesses in 2 Years
AL.com 09 Jul 2013
City councilors in Trussville, Ala., have placed a temporary ban on payday lenders and check cashers, the second time that they have done so in as many years. The initial 180-day moratorium, passed in June 2011, was intended to give the city council time to find a permanent solution for handling new alternative finance businesses; but that solution never materialized.
- Payday Loan Portion Risks Pa. Budget Bill
Pittsburgh Post-Gazette 09 Jul 2013
Controversial payday-lending language quietly slipped into the fiscal code bill is holding up the budget process in Pennsylvania. The Senate stripped the language -- which indicated that both chambers intend to vote on a payday lending bill by Oct. 31 -- from the bill before passing it...
- Cash-Short Drivers Roll on Rented Tires
Seattle Times 08 Jul 2013
Tire-rental businesses, much like payday lenders and pawn shops, offer fast credit to consumers who may not be able to obtain a loan elsewhere; but this option often comes with high costs. North Carolina couple Don and Florence Cherry could not afford to buy a new set of tires, so they agreed last September to pay Rent-N-Roll $54.60 a month for 18 months in exchange for four basic Hankook tires.
- Attempts at Payday Lending 'Compromise' Collapse
Providence Journal 02 Jul 2013
Rhode Island lawmakers were unable to hammer out a compromise for limiting the interest rate on payday loans, reform advocates say. The Rhode Island Payday Lending Reform Coalition supported bills in the House and Senate that would cap interest on short-term payday loans at 36 percent, compared to the current 260 percent. More than 70 legislators endorsed the bills
- Supreme Court Case May Have Big Impact on CFPB
American Banker 25 Jun 2013
The Supreme Court is scheduled to hear two cases later this year that could drastically impact lenders and potentially challenge the legality of certain new regulations.
- Iowa Cities Put Limits on Payday Lenders
Associated Press 17 Jun 2013
Although statewide efforts to limit payday lenders in Iowa have failed, a growing number of cities are approving zoning changes that would make it more challenging for the businesses to open.
- Bill Lets Banks Compete With Payday Lenders
Southeast Missourian 17 Jun 2013
A bill is pending before Missouri Gov. Jay Nixon that would increase the fees that state-based banks could charge for short-term cash advances...
- Millennials Big Fans of Prepaid Cards, Payday Loans
USA Today 13 Jun 2013
A Think Finance survey of more than 1,000 Millennials, ages 18-34, reveals that they are willing to pay for convenience when it comes to financial products. Although 92 percent of respondents use...