Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- 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.
- AARP Looks to Legislate Payday Loans
The Advocate (LA) 12 Nov 2013
The AARP is preparing to propose legislation that would limit the long-term interest rates for “payday” loans in Louisiana, after a survey found support for this effort among 60 percent of voting-age state residents.
- Louisiana Advocacy Group Seeks Limits on Payday Loan
The Advertiser (LA) 11 Nov 2013
Many consumers who take out a payday loan are put into even worse circumstances when forced to pay back more than they borrowed, according to David Gray, a policy analyst for the Louisiana Budget Project.
- 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.
- Fight Against Illegal Payday Loans Turns to Banks
Minneapolis Star Tribune (MN) 09 Nov 2013
Regulators and lawmakers have long been attempting to limit payday loans, but the struggle is moving away from the companies that offer the loans and in the direction of the mainstream financial institutions that help process them. New Jersey borrower Angel L. Gordon, for example, has filed a potential class-action lawsuit against U.S. Bank for its role in processing allegedly illegal loans that she obtained last year from online lender National Opportunities Unlimited Inc. Gordon spent $1,814 over 10 weeks to repay an $800 advance.
- CFPB Now Taking Payday Loan Complaints
Cleveland Plain Dealer (OH) 06 Nov 2013
The Consumer Financial Protection Bureau (CFPB) on Nov. 6 confirmed that it now accepts payday loan gripes from consumers. The bureau is the first federal agency to have supervisory authority over the payday industry. It will field consumer complaints related to unexpected fees or interest, unauthorized or incorrect bank-account charges, receipt of loans for which the consumer did not apply, and failure to deliver loans.
- Reforming Minnesota Payday Lending
Twin Cities Daily Planet (MN) 04 Nov 2013
Some payday lending companies have taken advantage of a loophole in Minnesota’s law that allows exorbitant interest rates. Between 2007 and 2011, the number of payday loans in the state ballooned from 172,000 to 338,000. Data from the Minnesota Department of Commerce indicate that the typical payday borrower takes out an average of 10 loans a year. In 2012, the city of Minneapolis alone accounted for more than $8.6 million of payday loans, at annual percentage rates of 400 percent and higher.
- 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.
- 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.
- 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.
- 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.