Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- U.S. Consumer Bureau Calls Payday Loans a Trap, Warns of New Rules
Reuters 24 Apr 2013
The U.S. Consumer Financial Protection Bureau (CFPB) has accused payday lenders of trapping borrowers in a cycle of debt and said that it may create new rules for short-term lending. Lenders often make small-dollar loans without actually checking whether the borrower will be able to repay them, according to the CFPB's April 24 report...
- Payday Lending Bill Pulled From Floor After Raucous Debate
Texas Tribune 18 Apr 2013
After a heated debate over Senate Bill 1247, which sought to create a regulatory framework for payday and auto title lenders in Texas, Sen. John Carona (R-Dallas) finally agreed to pull the proposal from the Senate floor. Several bills before the state Legislature aim to impose limitations on short-term loans, but Carona's had been perceived as the most viable...
- State Cites Online Payday Lender
Sacramento Business Journal 16 Apr 2013
Claiming that it is not licensed to do business in the state, the California Department of Corporations has leveled $32,500 in fines against the payday lender Pixycash.com. The lender, operated by Northway Financial Corp. Ltd. and Northway Broker Ltd. of Malta, is accused of soliciting its loan offers to California consumers via the Web...
- City Council Bans Payday Lenders in Lakewood (OH)
Patch.com 16 Apr 2013
Until Ohio's high court hands down a ruling on payday lending operations, the city of Lakewood is taking its own measures to clamp down on the high-cost loans. City councilors there passed a six-month moratorium on new cash-advance businesses...
- The Wild West of Payday Loans for Joe College
MainStreet 16 Apr 2013
Student debt tripled between 2004 and 2012, according to a Feb. 28 report from the Federal Deposit Insurance Corp. Some 43 percent of all 25-year-olds had student loans in 2012. Some payday loans are also being marketed as student loans, creating another danger for financially vulnerable students and twenty-somethings...
- Taking Some Risk Out of Payday Loans
Los Angeles Times 15 Apr 2013
A group of consumer advocates is pushing a much-needed payday lending bill in California, writes the Los Angeles Times editorial board...
- Database That Tracks Payday Loans Tucked Into Ohio's Budget
Cleveland Plain Dealer (OH) 12 Apr 2013
The Ohio House budget includes language that could create a state database to track borrowers' payday loans, a move opposed by both payday lenders and consumer advocates. Veritec Solutions, a Florida company that operates payday loan-tracking databases, is the biggest champion for such a project. Lenders, meanwhile, have referred to a loan-tracking database as "Big Brotherism;" while consumer advocates fear that the cost of a database would be passed on to borrowers, who already pay triple-digit interest rates on payday loans...
- Senators Seek to Cap Interest Rates on Consumer Loans
The Hill 09 Apr 2013
Senate Majority Whip Dick Durbin (D-Ill.) and several other Democratic colleagues have proposed a bill to set an interest rate and fee limit of 36 percent for all open- and closed-end consumer credit transactions...
- Bonamici and Cummings Urge Banks to Protect Customers From Online Payday Lender Withdrawals
Albany Tribune (NY) 03 Apr 2013
Reps. Suzanne Bonamici (D-Ore.) and Elijah Cummings (D-Md.) have called on major banks to empower consumers to prevent Internet-based payday lenders from making automatic withdrawals from their accounts. The legislators sent a letter to the five largest U.S. retail banks requesting that they voluntarily adopt provisions of the Stopping Abuse and Fraud in Electronic (SAFE) Lending Act, H.R. 990, which Bonamici and Cummings introduced in Congress earlier this year.
- Payday Loans Bill Moves Forward With More Consumer Safeguards
Fort Worth Star-Telegram 03 Apr 2013
The Senate Business and Commerce Committee in Texas recently approved a third version of a payday lending bill proposed by Sen. John Carona (R-Dallas). The update includes provisions championed by consumer protection groups to help low-income borrowers avoid a cycle of debt.
- More Seniors Relying on Payday Loans for Help
Dallas Morning News 31 Mar 2013
A recent report by the Center for Responsible Lending found that more than 25 percent of bank payday loan borrowers are Social Security recipients. A series of recent findings show that today's seniors are carrying more debt than ever. Payday loans can bear annual interest rates of up to 300 percent that can send borrowers into a cycle of debt.
- Payday Lender Ordered to Stop Collecting Illegal Debt in Arkansas
Arkansas Matters 28 Mar 2013
Arkansas Attorney General Dustin McDaniel announced an agreement with Kansas-based collection agency National Credit Adjusters, the terms of which require the collector to stop attempting to collect on illegal payday loan debt in Arkansas. In a consent judgment filed in Pulaski County Circuit Court, NCA agreed to halt its efforts to collect more than $2.7 million on 5,810 loans that will be canceled as part of the agreement...
- Payday Lending Bill Advances in House
Bellingham Herald (WA) 28 Mar 2013
The controversial Senate Bill 5312 is progressing in the Washington state Legislature. The measure, supported by Seattle-based payday lender Moneytree, would permit payday lenders to make loans of up to $1,500 with effective interest rates approaching 200 percent...
- RI Mayors Join Call for Limiting Interest Rates on 'Payday Loans'
Providence Journal 27 Mar 2013
Mayors from Warwick, Cranston, Central Falls, and Woonsocket have joined the call for Rhode Island lawmakers to restrict the payday lending industry. On March 27, the officials discussed the harmful effects of the short-term loans on local economies and spoke out in favor of legislation...
- 4 Ways to Fix Deficient Texas Payday-Lending Bill
Dallas Morning News (Texas) 26 Mar 2013
Texas Sen. John Carona (R-Dallas) recently presented a watered-down version of payday lending bill SB 1247 to the Business and Commerce Committee, warning that it was likely the best regulation that could pass this session. The proposal includes some industry best practices; but a commentary by Gerald Britt, Jr., vice president of policy at CitySquare, points out that it fails to address the cycle of debt common in payday lending...
- Pawn Shops Versus Payday Lenders
ConsumerAffairs.com (CA) 24 Mar 2013
In some cases, using the services of a pawn shop may be a viable alternative to payday loans...
- 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...