Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- Utahns Want Tighter Rules on Payday Loans
Salt Lake Tribune (UT) 26 Jan 2014
A SurveyUSA poll commissioned by the Salt Lake Tribune has found that Utah residents overwhelming prefer tougher oversight of payday lenders.
- Payday Lender Agrees to Fine, Refunds
Wall Street Journal 24 Jan 2014
In an agreement with New York Attorney General Eric Schneiderman, online payday lender Western Sky Financial LLC agreed to a $1.5 million fine.
- Four Oaks Bank Agrees to $1M Fine to Settle DOJ Suit
WRAL.com 09 Jan 2014
In North Carolina, Four Oaks Bank has agreed to pay $1.2 million to settle accusations that it and its parent company allowed illegal activity in its accounts tied to payday lending. The proposed deal -- which still needs court approval -- requires the bank to help federal authorities in possible criminal investigations of its executives, board members, and customers.
- Davis Calls on Cash America Exec to Step Down From State Commission
Fort Worth Star-Telegram 30 Dec 2013
In Texas, Sen. Wendy Davis (D-Fort Worth) has called for Cash America executive William J. White to resign as chairman of the Finance Commission of Texas, a state panel with authority over lending institutions. Davis spoke out after an article in the El Paso Times quoted White as blaming borrowers, rather than payday lenders, for getting caught in a cycle of debt with the high-interest loans. She said that White’s 2009 appointment to the commission was a “blatant conflict of interest” and noted that Fort Worth-based Cash America recently settled alleged abusive practices with the federal Consumer Financial Protection Bureau
- Lac du Flambeau Chippewa Enter Payday Loan Business With Eye to Online Gambling
Milwaukee-Wisconsin Journal Sentinel 29 Dec 2013
About two dozen Native American tribes have launched short-term online lending operations and are also considering online gaming. Barry Brandon, executive director of the Native American Financial Services Association, says that some of the legal and political battles that tribes fought over Indian casinos are now being fought over online lending.
- TIOR Capital Agrees to Forfeit $1M in Outstanding Loans
Riverside Press-Enterprise (CA) 26 Dec 2013
Authorities in California have reached a settlement with TIOR Capital, which offered unlicensed payday loans online to consumers across the state through its Nevada-based affiliates.
- Predatory Lenders Skirting Arizona's Payday Loan Law
Azcentral.com 19 Dec 2013
Arizona voters banned payday lenders in 2008, but some predatory lenders have been able to dodge the law and persist in their harmful credit practices, writes Rep. Debbie McCune Davis, a Democrat who represents Legislative District 30. Consumers in the state continue to be targeted by auto title lenders that charge triple-digit annual interest and claim to offer a quick financial fix that can actually evolve into a long-term financial problem.
- Federal Consumer Agency Sues Over Online Loans
New York Times 17 Dec 2013
On Dec. 16, the Consumer Financial Protection Bureau (CFPB) sued online loan servicer CashCall Inc., two related companies, and owner J. Paul Reddam to stop them from demanding payment for costly loans. The servicer managed loans that came with terms that often included triple-digit interest rates.
- Caldwell ID Approves Tighter Restrictions on Payday Lenders
Boise Weekly 17 Dec 2013
An ordinance stipulating where payday loan operations can set up shop in Caldwell, Idaho, has sailed through a city council vote with no objections. Under the measure, the businesses will be limited to manufacturing or light industrial zones and banished from commercial areas.
- Loan Amounts Can Snowball When Payday Lenders Sue Borrowers
St. Louis Post-Dispatch 14 Dec 2013
Lenders that make payday, auto title, and installment loans file suits against customers for non-payment tens of thousands of times annually. In Missouri alone, these lenders file more than 9,000 suits a year, according to an analysis by ProPublica. The court system is often biased on the lenders' side, making litigation profitable for them and increasing the costs for borrowers. These loans come with annual interest rates that range from about 30 percent to 400 percent or more. In some states, after a suit results in a judgment, the debt can continue to add up at a high interest rate.
- New York Subpoenas Websites in an Effort to Curb Payday Lenders
New York Times 03 Dec 2013
New York Superintendent of Financial Services Benjamin Lawsky recently sent subpoenas to 16 lead generator websites that sell sensitive consumer data to payday lenders to gather information about the websites' practices and connections to the lenders. This comes after Lawsky sent cease-and-desist letters in August to 35 online lenders for writing loans that violate state usury caps.