Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- 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.
- 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.
- FDIC Accused of Waging Stealth Crackdown on Online Lenders
American Banker 23 Sep 2013
The Federal Deposit Insurance Corp. has been ramping up reviews of banks' third-party relationships just as some online lenders, which rely on banks to process their transactions, are facing serious questions about their exorbitant interest rates and their liability under state licensing laws.
- 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.