Payday Lending News
The latest news on payday loans and the payday lending industry from the Center for Responsible Lending.
- 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.
- 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.
- 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."
- 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.