The CFPB is investigating eBay’s Bill Me Later service for allegedly violating short-term loan regulations by effectively offering financing that is little more than payday loans. The Bill Me Later program is under the supervision of PayPal and works by having Utah-based Comenity Capital Bank make instant loans that are then purchased by eBay. Loans under the program carry a 19.99 percent interest rate that customers can avoid by paying off their loan before the end of a six-month period. The Bill Me Later program can also be used at Wal-Mart, Disney, and Apple stores, highlighting the national reach of this lending program.
Payday Loans News
Nov, 11, 2013
Sep, 24, 2013
Another battle in the Payday Loan War is unfolding as Regions Bank faces off against a coalition of anti-payday loan activists in Illinois, Missouri, and Iowa. Regions Bank’s Ready Advance loans are the center of this dispute. These loans are alleged to be akin to payday loans, and have earned the ire of various consumer advocacy groups. These groups banded together and submitted a letter to Regions Bank’s Grayson Hall, who is the bank’s chairman, president, and CEO, calling for an end to Ready Advance loan lending.
Sep, 23, 2013
Western Sky, a tribal owned payday loan company, has announced it will be ceasing operations. The company rose to prominence as being one of the few overtly advertised payday loan lenders featuring a Native American spokesman in commercials and a logo with three tipis. According to the company’s website, operations ceased on September 3, 2013. Subsequently, 94 members of the Eagle Butte community, where the company is based, are reported to have lost their jobs.
Aug, 7, 2013
Beneath the religious texts and weekly church services, there exists a business model in organized religion. Some churches exist simply to help others, whereas others have more hidden agendas.
Aug, 6, 2013
In 2007, the Military Lending Act (MLA) was implemented to shield members of the armed forces from the difficulties that could potentially ensue by borrowing payday loans and other high-interest short-term loans. Under the terms of the MLA, payday loan lenders can only give financing to service members with an interest rate capped at 36 percent. This applies to all members of the armed forced and also their dependents. The MLA also requires payday loan storefronts to maintain a strict distance from military bases so that they are not readily accessible by military personnel.
Jun, 21, 2013
A new report from Think Finance has found that Millennials are turning to payday loans amidst the ongoing but struggling economic recovery. Interestingly, many of these Millennials have not had negative experiences with modern cash advance loans.
May, 29, 2013
The CEO of Louisiana Federal Credit Union recently defended her credit union’s lending of payday loans. Her defense of the credit union’s cash advance products came in response to an accusatory letter from the National Consumer Law Center and the Center for Responsible Lending. According to the letter, LouisianaFCU charged its customers triple digit interest rates.
May, 21, 2013
A recent report argues that payday loan borrowers in the UK are tech-savvy and financially literate, countering reports that paint borrowers as vulnerable. The “Credit Crunched” report, the result of a survey conducted by the UK’s Consumer Finance Association, which represents short-term loan lenders, analyzed the finance needs of three age groups: millenials, middle-aged adults and retiring baby boomers. The report found that technology played a large role in borrowers’ financial knowledge and expectations.
May, 20, 2013
The North Carolina Attorney General is taking up arms to protect Marines and members of the military from predatory payday loan lenders. On May 15, Attorney General Roy Cooper hosted a “Scam Jam” at Marine Corps Camp Lejeune. During the presentation he raised awareness about identity theft, automobile scams and usurious predatory payday loans; all of which threaten the financial wellbeing of both enlisted Marines and their families.
May, 17, 2013
Rhode Island may be the next state to dramatically lower their payday loan interest rate cap, depending on how the General Assembly votes on a new proposal. The bill, which was presented to the state’s General Assembly on Wednesday, would lower the payday loan interest rate cap to 36 percent. Under the current law, lenders can charge an APR of 260 percent, or $10 for every $100 borrowed. Supporters of the bill include Treasurer Gina Raimondo and the Rhode Island Payday Lending Reform Coalition. Ben Coleman, a Rhode Island math teacher and representative of the coalition, said that he did not believe the bill would pass.