Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- Payday Loans Suck Up Billions in Fees in States Where They’re Unregulated
Washington Post 11 Sep 2013
More than half of U.S. states allow payday loans to operate with few or no restrictions, generating $2.6 billion in fees annually, according to a new report by the Center for Responsible Lending (CRL). These small, easily accessible loans have been the target of growing increasing criticism in recent years because of their high interest rates and fees, which can be particularly heavy burdens for low-income borrowers.
- New York, Indian Tribes to Face Off in Court on Loans
Wall Street Journal 10 Sep 2013
New York Superintendent of Financial Services Benjamin Lawsky is locked in a legal battle with two Indian tribes as he tries to determine whether states can block online lenders that operate outside their borders.
- FTC Tussles With a Florida Telemarketer -- Again
Cleveland Plain Dealer (OH) 10 Sep 2013
Brett Fisher, whom the Federal Trade Commission (FTC) has just hit with a $25 million penalty for preying on consumers, is no stranger to the agency. It previously sued the Florida man and his company at the time, Group One Networks, over an advance-fee credit card scheme. A January 2010 settlement drew a $17 million fine -- of which the defendant was able to pay only $21,000 -- and prevented Fisher, among other restrictions, from marketing interest-rate reduction services. Undeterred by his legal loss, Fisher reportedly launched a new scheme almost immediately.
- FTC Moves to Shut Down Alleged Payday-Loan Scheme
Wall Street Journal MoneyBeat blog 05 Sep 2013
The Federal Trade Commission (FTC) has taken action against a group of Tampa-based businesses that promised to connect consumers over the Web with payday lenders that could provide quick cash. The operation run by Sean Mulrooney and Odafe Stephen Ogaga claimed to be affiliated with a network of 120 payday lenders.
- High Cost Lenders Have Found a Devious Way to Dodge New Laws
Business Insider (TX) 03 Sep 2013
Several Texas cities have taken action to curb high-cost lending in the state; but many big lenders are finding ways around the laws, such as giving away cash for free in exchange for title to the borrower's car.
- Online Lenders Go Bust Following New York Crackdown
American Banker 29 Aug 2013
While authorities have tried for years to drive high-cost online lenders out of business, New York state regulators may have been successful by cutting off their access to the payments system.
- State Actions Against Payday Lenders Prove Effective
ConsumerAffairs.com (CA) 28 Aug 2013
While both states and the federal government have jurisdiction when policing payday lenders and protecting consumers, states have been more aggressive on this front. Several have taken individual actions against businesses that make short-term loans with annual interest rates in the triple digits.
- Online Lender Says It Will Stop Funding Loans
Wall Street Journal 27 Aug 2013
Western Sky Financial LLC, an online lender with ties to the Cheyenne River Indian Reservation, has posted on its website that it will stop funding loans starting in September as a result of "recent interference by state and government regulators."
- Alabama Nears Decision on Database of Payday Lenders/Loans
Montgomery Advertiser (AL) 27 Aug 2013
Next month, the Alabama State Banking Department could make a final decision on the creation of a unified database to track payday loans. However, this likely will be only the first step in a long and potentially litigious process.
- Military Payday Loan Laws Set for Review, Improvements
Military Times 25 Aug 2013
Consumer protections for troops and their families should be broadened to cover not only payday loans but also products such as overdraft checking, installment loans, and rent-to-own contracts, consumer advocates say.
- Indian Tribes Sue New York on Online Loans
Wall Street Journal MoneyBeat blog 21 Aug 2013
The Otoe-Missouria Tribe, located in Oklahoma, and the Lac Vieux Desert Band of Lake Superior Chippewa Indians, located near the Wisconsin-Michigan border, are suing a New York regulator in a bid to preserve their ability to make online loans to New York residents
- 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.
- Maryland Goes After Payday Lenders' Banks to Stop Illegal Loans
Baltimore Sun 19 Aug 2013
Maryland's financial regulator is trying to stop illegal online payday loans by dogging the banks that help make the advances possible. "Without the payday lender's bank, the payday lender can't operate in my state," reasons Mark Kaufman, commissioner with the state's division of financial regulation.
- Chattanooga Payday Lender Forced to Shut Down Websites
Chattanooga Times Free Press (TN) 16 Aug 2013
Chattanooga lender and philanthropist Carey V. Brown shut down his payday loan websites after correspondence from New York regulators called on banks to cut access for what it called "illegal lenders."
- Houston Must Rein in Predatory Loans
Houston Chronicle 15 Aug 2013
Democratic state Sens. Rodney Ellis, Sylvia Garcia, and John Whitmire have proposed that Houston become the next Texas city to implement payday and auto title ordinances. Adding Houston to the eight cities that already restrict the short-term lending industry could encourage a push for statewide reform of the sector.