Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- Senator Presses Consumer Bureau on Installment Lender World Finance
ProPublica 25 Jul 2013
The Senate Special Committee on Aging held a July 24 hearing that examined how high-cost financial products such as payday loans affect seniors. Sen. Ron Wyden (D-Ore.) questioned a top official from the Consumer Financial Protection Bureau (CFPB) on how to address and prevent abuses by installment lenders.
- Seniors Fastest-Growing Segment of Payday Borrowers, Senate Told
Credit Union Times 25 Jul 2013
Rebecca Bornè, senior policy counsel for the Center for Responsible Lending (CRL), on July 24 told the Senate Special Committee on Aging that older Americans are a rapidly growing proportion of payday borrowers. Several factors make seniors attractive customers: most older Americans have regular Social Security income, and many experienced hardship in the financial crisis and housing downturn. In both Florida and California, about one in five payday borrowers is 55 or older.
- ‘Unbanked’ Minnesotans Hurt Most by Predatory Lending
MinnPost.com (MN) 24 Jul 2013
More than 360,000 Minnesota households that are “unbanked” or “underbanked” do not have access to reasonably priced, basic financial services, according to a 2011 survey by the Federal Deposit Insurance Corporation.
- Cover Story: Loosely Regulated Loan Centers Flourish
Sioux Falls Business Journal 24 Jul 2013
With the tightening of lending regulations came the spawn of new business in the alternative financial services space -- which includes payday lenders, auto title lenders, and pawn shops.
- Faith Based Group Calls for Cap on Fresno Payday Lenders
Valley Public Radio (California) 23 Jul 2013
Almost 12 million Americans use payday loans each year, but many of them are unable to repay them on time. A new Pew Research Center study found that only 14 percent of borrowers can afford to repay an average payday loan of $400, while 27 percent ultimately incur bank account overdraft fees.
- Payday Lenders Covered by FTC Act Even If Affiliated With American Indian Tribes
Yuma News Now (AZ) 22 Jul 2013
As part of a recent challenge by the FTC over what it says are illegal business practices by a payday lending outfit with an American Indian tribal affiliation, a U.S. magistrate judge has issued a report clarifying the agency's authority to file suit against Native American tribes as well as their employees and contractors.
- Virginia Sues Payday Lender
Fairfax News 19 Jul 2013
Virginia Attorney General Ken Cuccinelli is suing Internet payday lender Jupiter Funding Group, alleging that it has been making illegal loans without a valid state payday loan license. The Virginia State Corporation Commission requires every payday lender to obtain a license in order to conduct business in the state.
- 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.
- Consumer Protection Program to Aid Military
San Diego Daily Transcript 16 Jul 2013
Consumer organizations, including the Federal Trade Commission (FTC), this month presented the first Military Consumer Protection Day as part of a year-round campaign to provide active-duty and retired military consumers with resources for managing finances and avoiding scams.
- 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.
- 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...
- 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.
- 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