Payday Lending News

The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.

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  • 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.
  • 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.
  • 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.
  • Missouri City to Tighten Regulations on Payday Lenders & Pawn Shops 
    Fort Bend Star 11 Dec 2013
    Missouri City, Texas, is exploring stricter zoning rules and other measures for payday lenders and pawn shops. I
  • Tougher New Rules Under Consideration for Birmingham Payday Lending and Title Pawn Businesses  06 Dec 2013
    Birmingham, Ala., has had a moratorium on new payday lending and auto title businesses for two years, and now the city council is considering new zoning rules for more long-term control on the growth of these financial services.
  • 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.
  • Decatur Wants to Tighten Restrictions on Payday Lenders (Alabama)  02 Dec 2013
    The City Council in Decatur, Ala., is considering a zoning ordinance that would limit where payday lenders can set up shop. It also has drafted a resolution calling on lawmakers to cap payday loan interest rates, which often top 200 percent or even 400 percent on an annualized basis, and continues to push for legislation at the state level that would require lenders to report loans to a database to ensure compliance with the $500 limit.
  • Pay Day Lending – Ending a Vicious Cycle 
    Houston Chronicle 02 Dec 2013
    The mayor of Houston, Texas, is pushing for a payday lending ordinance that would restrain and regulate these types of lenders in the city. Such businesses often take advantage of the poor and vulnerable to generate large profits, writes Mustafa Tameez in an editorial.
  • Ditching Compromise, Parker Pushes Tough Payday Loan Regulations 
    Hispanic Business  23 Nov 2013
    Houston Mayor Annise Parker has thrown out a compromise plan to regulate payday and auto title lenders, instead promoting stricter measures to limit this type of financing. The city council will vote next month on the regulations, modeled on rules passed by other Texas cities that include Dallas, Austin, San Antonio, and El Paso
  • Service Members Left Vulnerable to Payday Loans 
    New York Times DealBook Blog 22 Nov 2013
    The Military Lending Act was enacted nearly seven years ago, but some say it has gaps that leave hundreds of thousands of U.S. service members open to potentially predatory loans. Congress passed the law to shield service members from loans with double-digit interest rates that can get borrowers deep into debt. Critics, however, say the law has not kept up with high-interest lenders that operate either online or near bases.
  • Fresno Pushes Payday Loan Limits, Critics Stress Financial Dangers 
    ABC - KFSN Fresno (CA) 21 Nov 2013
    There are 66 payday lenders already licensed to do business in Fresno, Calif., so officials there are taking steps to check the local growth of such companies -- which state regulators say charge annual interest rates of about 460 percent.
  • Payday Lender Cash America Fined Over Claims of Robo-Signing, Gouging Military Members 
    Washington Pos 21 Nov 2013
    The Consumer Financial Protection Bureau (CFPB) has reached a $19 million settlement with payday lender Cash America over abusive practices such as "robo-signing," in which employees stamped a lawyer’s signature on court documents used to sue borrowers for past-due debts. This tactic, according to the CFPB, helped the company improperly make money from at least 14,397 U.S. consumers. The settlement with Cash America is the CFPB's first with a short-term, small-dollar lender. The agency also found cases in which Cash America charged active-duty service members and their families more than the 36 percent interest rate limit set by the Military Lending Act.
  • Reining in Payday Lenders 
    New York Times 17 Nov 2013
    Earlier this month, the Consumer Financial Protection Bureau (CFPB) announced that it will start to collect complaints from borrowers who may have experienced unreasonable fees, unauthorized withdrawals from their checking accounts, or other abuses from payday lenders.
  • Average Payday Loan in Utah Has Triple-Digit Interest 
    Salt Lake Tribune 15 Nov 2013
    There are now 565 payday lending and title loan locations in Utah, providing short-term advances at an average interest rate of nearly 500 percent.
  • State Puts Brakes on Online Lender 
    Coeur d'Alene Press 13 Nov 2013
    Financial regulators in Idaho have imposed a cease-and-desist order against AAA Payday Advance, an online lender that is based in Utah and has no license to do business in Idaho. Violation of the licensing requirements renders payday and other consumer loans void, uncollectable, and unenforceable, according to Idaho Department of Finance director Gavin Gee.
  • Faith Groups Urge Stricter Rules on Payday Loans 
    Minneapolis Star Tribune 12 Nov 2013
    The Joint Religious Legislative Coalition has released a report calling for a broad new crackdown on payday lending in Minnesota, arguing that current limits on the industry are inadequate.
  • Here’s How Veterans Are Being Targeted for Crippling Loans 
    Care2 11 Nov 2013
    Although the nation's former enlisted personnel can receive a variety of benefits through the Veterans Administration (VA), many find themselves the targets of exploitative lending practices in the financial sector, such as bait-and-switch loan terms and 400 percent interest rates.
  • 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.
  • States Sharpen Payday-Loan Scrutiny 
    Wall Street Journal 26 Sep 2013
    State regulators are trying to rein in payday loans by pressuring lenders to submit customer information to state databases. Alabama became the most recent state to call for a database, following similar proposals in California, Pennsylvania, and other areas.
  • Lawsuit Filed to Try and Block Payday Loan Database 23 Sep 2013
    Payday lenders that include Cash Mart and Rapid Cash have filed a lawsuit in a bid to derail a new database to track short-term borrowing in Alabama.
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