The Real Cost Of Quick Cash: What Should You Know About Payday Lending Services?

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JAN ROSS PIEDAD & DAVID MARTIN DAVIES | Texas Public Radio
Payday loans can be a welcome rescue for people without credit or who are hit with an unexpected emergency, but small, short-term loans can accumulate debt in weeks due to interest rates that can reach 500 percent or higher. What does it take to pay off a loan secured by the promise of a future paycheck? What are the risks associated with borrowing from these types of "quick cash" services? How could the Consumer Financial Protection Bureau's rescinding of a proposed payday loan rule affect borrowers and the payday lending industry? How are state and local polices addressing predatory payday

Payday Loans, Uber Addresses Sexual Assault Campaign & Sundial Book Club: Zora Neale Hurston

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ALEJANDRA MARTINEZ | WLRN
Payday loans are marketed as quick cash to help people get to their next paycheck, but they come at a great cost with an average interest of 300 percent and people getting multiple loans over time, according to a 2016 report. The Community Financial Services Association of America, which lobbies on behalf of payday lenders, held their annual conference in Trump National Doral Miami recently and faith leaders from across South Florida protested the event, arguing payday lenders disproportionately target low-income minority groups. Angel Pittman protested at the event and is the Vice President

Fannie and Freddie Return to Senate Spotlight as Crapo Seeks Fix

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Jesse Westbrook | Bloomberg
A Fannie Mae and Freddie Mac fix is on Washington’s agenda —- again. Congress this week kicks off its latest attempt to forge a path forward for the mortgage giants, something that’s proved extremely elusive in the 11 years that the companies have been under U.S. control. Starting Tuesday, Senate Banking Committee Chairman Mike Crapo will hold two days of hearings on his plan for returning Fannie and Freddie to private ownership and giving the government an explicit role in backstopping the housing market.

Ex-CFPB Chief Cordray Attacks Trump Administration For Retreating On Consumer Financial Protection

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Ted Knutson | Forbes
Former Consumer Financial Protection Bureau Director Richard Cordray attacked the Trump Administration today for retreating on consumer financial protection. Aggressive policies are needed to protect consumers, said Cordray, pointing to mortgage market abuses that helped to propel the recession as a poster child. He urged states to take up the slack. “More consumer protection from the states is a good thing,” said the CFPB’s first head. He was appointed by former President Barack Obama.

Betsy DeVos Turns a Deaf Ear to Students Affected by For-Profit College Closures

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CHEYE-ANN CORONA | Morning Consult
In recent years, a number of major for-profit operators such as Education Corporation of America, Vatterott Colleges, Education Management Corporation, ITT Tech and Corinthian Colleges have abruptly closed their doors under the weight of mismanagement, scandal and state and federal investigations. As a result, tens of thousands of students have been left wondering how to recover the time and money they invested in an education that suddenly vanished. The Department of Education led by Secretary Betsy DeVos has harmed students by repeatedly giving bad actors in the for-profit college sector a

Fend Off Attack on Citizens' Initiative Rights

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The Coeur d'Alene Press
Daniel Radford and Jim Jones might be miles and years apart, but they’re as close to right on as they can get. Today you’ll read, on the facing page, a piece penned by young Radford, a sophomore at prestigious Emory University in Georgia. Radford hails from Sandpoint. On the March 8 op-ed page, The Press published an opinion piece written by Jones, former chief justice of the Idaho Supreme Court. Both men have taken aim at — and hit squarely in the bull’s-eye — a dangerous Idaho bill that would undermine the power of the people.

Advocacy Groups Say Lending Bill Would Create Cycle Of Debt For Hoosiers

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BARBARA BROSHER | Indiana Public Media
A large coalition of consumer advocacy, non-profit and religious groups is calling on state legislators to scrap a controversial short-term lending bill. The legislation passed through the state Senate and now awaits a hearing in a house committee. While some lawmakers say the proposal gives more options to Hoosiers with bad credit, opponents say it will only worsen their financial situations.

Groups oppose Senate Bill 613 on lending

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Doug LeDuc | Greater Fort Wayne Business Weekly
Several organizations, including the Indiana Institute for Working Families, met at the Indiana Statehouse 3rd floor atrium March 11 to explain their opposition to a subprime lending bill co-authored by Huntington’s state senator. State Sen. Andy Zay, R-Huntington, co-authored Senate Bill 613, which the Center for Responsible Lending said would allow lenders to exceed for everyone but active military personnel the annual rate cap including fees and charges of 36 percent established in the Military Lending Act.

BankThink Bank deposit advances are payday loans in disguise

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Mike Calhoun | American Banker
In a recent op-ed, Consumer Bankers Association President Richard Hunt asserts that bank payday loans were a service to customers and argues that they should be restarted. The facts, though, show that while these loans produced huge fees for banks, they were a usurious debt trap for bank customers. Just a few years ago, banks were making 200%-plus APR payday loans, which they euphemistically called “deposit advance products.” While deposit advances were marketed as a small-dollar, quick fix to a budgetary shortfall, they typically led to an expensive debt trap. These were payday loans, dressed

A Restriction on Payday Lenders Was Just Delayed. Democrats Want to Know Why

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ABIGAIL ABRAMS |Time Magazine
The Consumer Financial Protection Bureau was created in 2010 to help protect American consumers against bad corporate practices. But Democratic lawmakers believe the agency has taken a turn under President Donald Trump. This week, House Democrats began looking into a recent decision by the agency to delay a rule on payday lending. “This committee will not tolerate the Trump Administration’s anti-consumer actions,” Rep. Maxine Waters said at a hearing that looked into the issue, among others, on Thursday.