Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- Online Lender Seeks Dismissal of New York Suit
Wall Street Journal 17 Sep 2013
Western Sky Financial LLC, an online lender targeted by state regulators for charging steep interest rates, said Sept. 17 that a lawsuit filed against it by New York Attorney General Eric Schneiderman should be dismissed because the state lacks authority over the business.
- Making Money Off the Poor
New York Times Opinionator 17 Sep 2013
Many different businesses and schemes are making money off of low-income Americans, Tom Edsall writes in a New York Times opinion piece.
- Payday Loans Suck Up Billions in Fees in States Where They’re Unregulated
Washington Post 11 Sep 2013
More than half of U.S. states allow payday loans to operate with few or no restrictions, generating $2.6 billion in fees annually, according to a new report by the Center for Responsible Lending (CRL). These small, easily accessible loans have been the target of growing increasing criticism in recent years because of their high interest rates and fees, which can be particularly heavy burdens for low-income borrowers.
- FTC Tussles With a Florida Telemarketer -- Again
Cleveland Plain Dealer (OH) 10 Sep 2013
Brett Fisher, whom the Federal Trade Commission (FTC) has just hit with a $25 million penalty for preying on consumers, is no stranger to the agency. It previously sued the Florida man and his company at the time, Group One Networks, over an advance-fee credit card scheme. A January 2010 settlement drew a $17 million fine -- of which the defendant was able to pay only $21,000 -- and prevented Fisher, among other restrictions, from marketing interest-rate reduction services. Undeterred by his legal loss, Fisher reportedly launched a new scheme almost immediately.
- New York, Indian Tribes to Face Off in Court on Loans
Wall Street Journal 10 Sep 2013
New York Superintendent of Financial Services Benjamin Lawsky is locked in a legal battle with two Indian tribes as he tries to determine whether states can block online lenders that operate outside their borders.
- FTC Moves to Shut Down Alleged Payday-Loan Scheme
Wall Street Journal MoneyBeat blog 05 Sep 2013
The Federal Trade Commission (FTC) has taken action against a group of Tampa-based businesses that promised to connect consumers over the Web with payday lenders that could provide quick cash. The operation run by Sean Mulrooney and Odafe Stephen Ogaga claimed to be affiliated with a network of 120 payday lenders.
- High Cost Lenders Have Found a Devious Way to Dodge New Laws
Business Insider (TX) 03 Sep 2013
Several Texas cities have taken action to curb high-cost lending in the state; but many big lenders are finding ways around the laws, such as giving away cash for free in exchange for title to the borrower's car.
- Online Lenders Go Bust Following New York Crackdown
American Banker 29 Aug 2013
While authorities have tried for years to drive high-cost online lenders out of business, New York state regulators may have been successful by cutting off their access to the payments system.
- State Actions Against Payday Lenders Prove Effective
ConsumerAffairs.com (CA) 28 Aug 2013
While both states and the federal government have jurisdiction when policing payday lenders and protecting consumers, states have been more aggressive on this front. Several have taken individual actions against businesses that make short-term loans with annual interest rates in the triple digits.
- Online Lender Says It Will Stop Funding Loans
Wall Street Journal 27 Aug 2013
Western Sky Financial LLC, an online lender with ties to the Cheyenne River Indian Reservation, has posted on its website that it will stop funding loans starting in September as a result of "recent interference by state and government regulators."
- Alabama Nears Decision on Database of Payday Lenders/Loans
Montgomery Advertiser (AL) 27 Aug 2013
Next month, the Alabama State Banking Department could make a final decision on the creation of a unified database to track payday loans. However, this likely will be only the first step in a long and potentially litigious process.