Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- Corinth TX Mulls Rules on Lending
Denton Record-Chronicle (TX) 02 Nov 2013
Officials in Corinth, Texas, are contemplating a move to regulate credit-access, payday, and title lending companies within city limits, which would make it the eighth city to do so, according to a Texas Municipal League report. The paper notes that many states have enacted laws “to restrict predatory lending practices, but meaningful reforms have failed to pass the Texas Legislature in the last three sessions.”
- Payday Loans Drop as Lenders Exploit Loophole
Madison Capital Times (WI) 31 Oct 2013
Payday loans in Wisconsin have declined significantly since 2010, when former Gov. Jim Doyle signed into law legislation intended to limit predatory lending. In 2010, 460 lenders provided over 1.15 million loans worth $482 million; but by the next year, the number of lenders dropped to 423 and the number of total loans fell to 255,117 with an aggregate value of $76.6 million. Experts say, however, that the data only shows how easily payday loan operators exploit legal loopholes.
- Two Tribes Agree to End Payday Loan Practices
Tulsa World 29 Oct 2013
Payday lenders owned by two Oklahoma Indian tribes will cease the use of aggressive collection techniques, such as threatening borrowers with court action and arrest. The concessions are included under a partial settlement with the Federal Trade Commission (FTC), approved by a U.S. District Court judge in Nevada this month.
- New PayDay Loan Alternative Program to Be Unveiled
Woonsocket Call 28 Oct 2013
A coalition of non-profits and private companies has established the Woonsocket Payday Loan Alternative Program, an experiment in consumer lending that could help convince Rhode Island legislators to abolish high-cost payday loans. The program, a joint venture of the United Way and the Capital Good Fund, is scheduled to launch on Nov. 4 in Woonsocket, R.I.
- City Targets Debt Collectors
Wall Street Journal 27 Oct 2013
New York City's Department of Consumer Affairs is turning the heat up on debt collectors for allegedly pursuing residents over high-cost loans.
- Changes Proposed to Where Payday and Title Loan Companies Can Go
Richmond Times-Dispatch (VA) 24 Oct 2013
Chesterfield County officials, who earlier in the year approved a measure to allow payday and title lenders to operate in the Virginia jurisdiction, are now looking to revise their decision. The county board of supervisors will consider a change that would force the lenders to operate inside shopping centers or in multi-use structures rather than in independent storefronts.
- Orgs Seek Alternatives to Powerful, Expensive Payday Loans
KCUR 22 Oct 2013
Missouri has found itself in the midst of a national debate over payday loans -- partly because of a growing, grassroots consumer movement against the industry, which holds a great deal of political clout in the state.
- The Dangers of Online Lending
U.S. News & World Report 22 Oct 2013
Although regulators and consumer advocates have worked for years to curtail payday lending, more and more firms are moving the business to the Web -- raising new policy challenges and threatening consumer protections at the state level, writes Tom Feltner of the Consumer Federation of America.
- Lawmaker Attempting to Reform Payday Loans
Sioux Falls Argus Leader (SD) 20 Oct 2013
Eighteen states and the District of Columbia have banned the loans or capped their interest rates. In South Dakota, State Rep. Steve Hickey (R-Sioux Falls) is attempting to crack down on them there. He used a coalition of backers and a poll to win approval for an initiated measure asking voters to cap interest rates to 36 percent.
- California Says Expect Examinations on Payday Lending
Credit Union Times 14 Oct 2013
The California Department of Business Oversight (CDBO) has called on banks and credit unions to monitor and report illegal transactions of unlicensed payday lending activity, warning that it will be examining banks and credit unions to make sure they are taking preventative action.
- Say No to Payday Loans: 5 Safer Sources of Quick Cash
Daily Finance 13 Oct 2013
Although payday loans may seem like the best choice for consumers with poor credit who need quick cash, these loans come with high interest rates and little transparency about fees, prompting 13 states to ban them or adopt strict usury laws. Compared to the annual percentage rate (APR) of 10 percent to 25 percent for a bank-issued personal loan, the APR on a payday loan can range from 300 percent to over 700 percent.
- Lakewood OH Extends Ban on Payday Lenders
Lakewood Patch (OH) 10 Oct 2013
Officials in Lakewood, Ohio, say that many payday lenders are exploiting “loopholes” in the 2008 Short-Term Lending Act, which otherwise caps the interest rates that these lenders can charge.
- J.P. Morgan to Cull Business Clients
Wall Street Journal 09 Oct 2013
JPMorgan Chase is seeking to rein in lending to pawn shops, payday lenders, check cashers, "buy here pay here" auto dealerships, and third-party payment processors as it moves to tighten controls in the face of greater regulatory scrutiny.
- California Banks, Credit Unions Warned to Be on Lookout for Illegal Payday Lenders
Sacramento Bee (CA) 09 Oct 2013
In its ongoing crackdown against illegal payday loans, California is warning banks and credit unions to watch for fraudulent lenders. "By accepting debit and credit transactions from unlicensed payday lenders ... financial institutions are, knowingly or unknowingly, enabling illegal payday loan transactions to occur in California," the state Department of Business Oversight (DBO) cautioned on Oct. 7 in letters to more than 300 state-licensed institutions.
- Despite 2010 Bill, Payday Loans Continue
Colorado Springs Business Journal 08 Oct 2013
Recent data from the Colorado attorney general’s office shows that the number of payday loans in the state increased slightly from 2011 to 2012. Under rules by the Colorado General Assembly, payday lenders cannot offer loans larger than $500 or charge interest rates greater than 45 percent. Although the borrowed amount for individual payday loans has increased, the number of businesses offering the product in Colorado has declined.