Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- Kansas City Area Taking the Lead in the Online Lending Industry
Kansas City Star 21 Sep 2013
At least six agencies within the U.S. government have launched a crackdown on Internet short-term lending, which is good news for low-income consumers hurt by high interest rates and fees, according to an editorial in the Kansas City Star.
- Long Beach City Council Restricts Short-Term Lenders
Long Beach Press-Telegram 19 Sep 2013
The Long Beach (Calif.) City Council has unanimously voted to push consumer-finance lending businesses from neighborhood commercial and other areas into locations that are more automobile-oriented and widen the separation between the businesses from 1,000 feet to 1,320 feet.
- 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.
- Editorial: Crack Down on Abusive Lending
Cincinnati Enquirer 17 Sep 2013
This Cincinnati Enquirer editorial calls on regulators at the Ohio Department of Commerce "to step in, investigate, and then revoke the licenses of those businesses found to be evading payday lending laws."
- 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.
- 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.
- Opponents Say Bill Opens Up Door for Payday Lenders
Log Cabin Democrat (Arkansas) 23 Mar 2013
Arkansas has been free of payday lenders for nearly four years, after its Supreme Court declared that their triple-digit annual interest rates for short-term loans violated a state law against usury. Now, however, critics of the industry are worried that a new proposal in the Legislature will allow payday lenders to creep back into Arkansas...
- Lawmakers File Bills on Payday Lending
Denton Record-Chronicle (TX) 21 Mar 2013
Texas Sen. John Corona (R-Dallas) recently introduced Senate Bill 1247 in an attempt to change the way payday lenders operate and how cities can control them. Some say, however, that it is not enough to curtail the problem...
- Dimon Pledges to Change JPMorgan’s Practices on Payday Loans
New York Times 27 Feb 2013
Calling the practice "terrible," JPMorgan Chase CEO Jamie Dimon has pledged to revamp how the bank addresses automatic account withdrawals made by Internet-based payday lenders. JPMorgan Chase does not make the loans directly but does enable online payday lenders to deduct payments from customers’ checking accounts, even in the 15 states that prohibit such loans. Sometimes these withdrawals continue even after customers have asked banks to prevent it. More payday lenders are operating online in order to avoid state-based limits on interest rates. Lawmakers also are addressing the issue. In July, Sen. Jeff Merkley (D-Ore.) introduced a bill that would force payday lenders to follow the laws of states where the borrower is located. Part of the bill, pending in Congress, would allow borrowers to more easily halt automatic withdrawals. A new report by the Pew Charitable Trusts, meanwhile, finds that an estimated 27 percent of payday loan borrowers say the loans caused them to overdraw their accounts.
- U.S. Consumer Watchdog Meeting With States on Offshore Lenders
Reuters 26 Feb 2013
U.S. Consumer Financial Protection Bureau (CFPB) director Richard Cordray said Feb. 26 that his agency is working with state authorities to rein in payday lenders that are located outside the United States and operating over the Web. Consumer advocates say some lenders are moving online to avoid the rules in states that are tougher on payday loan firms. Cordray said during a conference of the National Association of Attorneys General that the CFPB wants to ensure that individuals can obtain emergency cash without being cornered by loans with exorbitant fees that must be repaid quickly. "We also recognize that effective enforcement of the law can be challenging when it comes to lenders that lack a physical presence," said Cordray. "Our enforcement teams have met with some of your offices in multi-state meetings to consider how best to coordinate our efforts on loans that involve offshore or other jurisdictional issues."