Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- 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.
- Military Payday Loan Laws Set for Review, Improvements
Military Times 25 Aug 2013
Consumer protections for troops and their families should be broadened to cover not only payday loans but also products such as overdraft checking, installment loans, and rent-to-own contracts, consumer advocates say.
- Indian Tribes Sue New York on Online Loans
Wall Street Journal MoneyBeat blog 21 Aug 2013
The Otoe-Missouria Tribe, located in Oklahoma, and the Lac Vieux Desert Band of Lake Superior Chippewa Indians, located near the Wisconsin-Michigan border, are suing a New York regulator in a bid to preserve their ability to make online loans to New York residents
- Montgomery City Councilmen Seek Moratorium on Payday Lenders
WSFA-12 (AL) 20 Aug 2013
An item on the Montgomery, Ala., city council's agenda could threaten the future of payday and title loan businesses in the city. Councilmen Richard Bollinger and Charles Smith have proposed a temporary freeze on business licenses for these types of lending agencies.
- Maryland Goes After Payday Lenders' Banks to Stop Illegal Loans
Baltimore Sun 19 Aug 2013
Maryland's financial regulator is trying to stop illegal online payday loans by dogging the banks that help make the advances possible. "Without the payday lender's bank, the payday lender can't operate in my state," reasons Mark Kaufman, commissioner with the state's division of financial regulation.
- Chattanooga Payday Lender Forced to Shut Down Websites
Chattanooga Times Free Press (TN) 16 Aug 2013
Chattanooga lender and philanthropist Carey V. Brown shut down his payday loan websites after correspondence from New York regulators called on banks to cut access for what it called "illegal lenders."
- Houston Must Rein in Predatory Loans
Houston Chronicle 15 Aug 2013
Democratic state Sens. Rodney Ellis, Sylvia Garcia, and John Whitmire have proposed that Houston become the next Texas city to implement payday and auto title ordinances. Adding Houston to the eight cities that already restrict the short-term lending industry could encourage a push for statewide reform of the sector.
- Two Banks' Payday-Advance Lending Draws Scrutiny
Orlando Sentinel (FL) 14 Aug 2013
Regions Bank and Fifth Third Bank, two of Florida's largest banks, are drawing criticism from consumer groups after entering the payday-advance business. Like just a few others in the United States, they now offer a type of short-term, high-cost loan that is commonly associated with payday lending. Critics say these loans' steep interest and fees can draw consumers into a dangerous "debt trap."
- Both Sides in Payday Loan Debate Start Petitions
Springfield News-Leader (Missouri) 14 Aug 2013
Critics and proponents of payday lending in Missouri will see a contentious 18 months as each side attempts to put constitutional amendments on the ballot.
- New York AG Sues Online Payday Lenders
American Banker 13 Aug 2013
New York Attorney General Eric Schneiderman filed suit Aug. 12 against a trio of online lenders and their owners, which he claims violated usury laws by issuing loans bearing annual interest rates of as much as 335 percent.
- Indian Tribes Oppose New York Order on Online Lenders
Wall Street Journal 12 Aug 2013
Benjamin M. Lawsky, superintendent of New York's Department of Financial Services, has launched an effort to shut down tribal lenders' online operations, but Indian tribes argue that the state lacks authority to do so.
- How One State Succeeded in Restricting Payday Loans
ProPublica 06 Aug 2013
Washington state legislators in 2009 passed a law blocking borrowers from taking out more than eight payday loans in a single year, and that statute has served as a model for Delaware and other states.
- Rules Grow, But Profits for Payday Lenders Soar
Toledo Blade 06 Aug 2013
Although Ohio lawmakers abolished high-cost loans in 2008, many payday loan stores still operate in the state -- some charging annual percentage rates (APRs) up to 700 percent. Lenders often exploit loopholes in the law, or react to laws against one type of loan by offering "second generation" products that still feature triple-digit APRs.
- New York Scrutinizes Online Lenders
Wall Street Journal 06 Aug 2013
Benjamin Lawsky, superintendent of the New York Department of Financial Services, has issued 35 cease-and-desist orders to online firms that he believes might be dodging state laws prohibiting lenders from charging egregious interest rates.
- Check ‘n Go Refunds to Be Mailed This Week
San Francisco Chronicle 05 Aug 2013
More than 2,000 Californians will receive checks from payday lender Check ‘n Go after San Francisco City Attorney Dennis Herrera sued the company in 2007 for loaning money at unlawful interest rates.
- State Needs More Regulation of Payday Loans
Iowa City Press-Citizen 03 Aug 2013
More cities in Iowa are using zoning authority to restrict payday loan businesses within their borders, but such efforts have only limited effect on the industry without statewide legislation. Iowa City's ordinance, which confines delayed-deposit service businesses to community commercial zones, effectively stopped new payday loan businesses from opening; but it does not affect the businesses that are already up and running.
- Cities Put Restrictions on Payday Loan Shops
Des Moines Register 31 Jul 2013
Despite calls from cities and consumer groups, the Iowa Legislature has not yet capped interest rates on payday loans or attempted to prohibit the businesses from operating. Cities in Iowa are resorting to local restrictions on the industry, with Windsor Heights in July becoming the seventh city in the state to pass an ordinance restricting where the lenders can set up shop.