Payday Loans News

torn one hundred dollar bill
May, 13, 2013
A new report has stated that payday loans damage the nation’s economy. Worse still, they purportedly cost the economy nearly $1 billion in 2011. The report, titled The Net Economic Impact of Payday Lending in the U.S., argues that by borrowing instant loans, consumers are simply getting themselves into worse-off situations. By using data from state regulators, the report claimed that the payday loan industry caused a loss of economic activity and a net loss of 14,094 jobs.
TV remote
May, 8, 2013
The British Advertising Standards Authority has banned a payday loan advertisement for suggesting that short-term, high interest loans can be used to fund a celebrity lifestyle. The ad, which promoted payday loans offered by PDB UK’s Cash Lady, features media personality and former girl group member Kerry Katona. Katona, who filed for bankruptcy in 2008, references her own financial difficulties throughout the commercial.
May, 7, 2013
Bay Area lawmakers are working to regulate payday lending in their counties following the failure of reform legislation in the state senate. Berkeley city Councilman Jesse Arreguin has drafted a plan to control the opening of new payday lending centers in his city. Legislators in several Bay Area cities, including Oakland, San Jose and San Francisco, have also worked to pass payday lending reform bills that are stricter than state laws.
totem pole
Apr, 30, 2013
Payday lenders have found a new way to circumvent state usury laws. By partnering with Native American tribes and operating under their sovereign status, payday lenders are able to lend to anyone in any state at whatever interest rate they choose. The origins of tribal immunity date back to before the United States was founded. Tribes were sovereign nations at the time and subsequent legal acts between the settlers and the tribes continued to recognize that sovereignty. For this reason tribes cannot be sued unless Congress allows it or the tribe waives its immunity.
Disrupt dollars
Apr, 26, 2013
The Consumer Financial Protection Bureau (CFPB) issued a report stating that payday loans and deposit advance loans lead customers into a cycle of debt. The report attributes loose lending standards, high costs and risky loan structures to the impact short-term loans have on consumers’ financial health. Loans offered by both banks and payday lenders are given as a way to “bridge a cash flow shortage between paychecks.” Findings
Apr, 24, 2013
Federal regulators are preparing to crack down on short-term, high-interest loans, according to recent reports from the New York Times and the Washington Post. Storefront and online payday loan lenders will not be targeted in their new regulation. Instead, regulators are going after payday lenders’ big bank counterparts. Big banks offer short-term loans with similarly high interest rates. Wells Fargo charges $1.50 for every $20 borrowed, which can amount to a 300 percent APR.
california flag
Apr, 18, 2013
California politicians voted down a bill that would have increased regulation on payday lending during a Wednesday meeting of the Senate’s banking committee. The bill, SB 515, would have prevented borrowers from taking out more than four payday loans in one year. It also called for stronger vetting of payday loan borrowers’ ability to pay and would have extended borrowers’ repayment periods. Five members of the California Senate Banking and Financial Institutions Committee voted against the bill, three voted for it and one member abstained.
gavel on money
Apr, 16, 2013
California lawmakers will meet this week to discuss legislation to restrict and further regulate payday lending practices. Senate Bill 515 aims to limit the number of loans a borrower can take out to four per year and would give consumers 30 days to pay back their loans for every $100 borrowed. All payday would also be tracked in a state database. Payday lenders would also be required to standardize their lending criteria and more thoroughly investigate a borrower’s ability to pay.
Fist Alabama state flag
Apr, 10, 2013
Two legislative bills seek to set interest rate caps on payday and titles loans in Alabama: House Bill 320, which seeks to limit payday loans, and House Bill 462, which seeks to limit title loans. Both bills would place a 36 percent cap on short-term payday loans and title loans distributed by state businesses. Interest rates can currently reach up to 456 percent for payday loans and 300 percent for titles loans.
tank made of money and cash dollars
Apr, 5, 2013
The Indiana Attorney General has just released a legal toolkit that will help state Attorneys General protect military service members from predatory lending, such as unscrupulous payday loan lenders. Greg Zoeller, Indiana’s Attorney General, partnered with the Department of Justice and the Financial Fraud Enforcement Task Force in order to develop the toolkit. Other states’ Attorneys General also helped develop the toolkit.