Payday Loans News

boxing glove with money
Dec, 4, 2012
Strike Debt has clear plans to tackle the payday lending industry along with other lenders by using donations to purchase owed money. Rolling Jubilee, a project from Strike Debt, has so far raised $431,867, which has abolished $8,642,157. Using donations, Rolling Jubilee purchases debt that is in default for pennies on the dollar. This common practice is used by debt collection agencies whereby they purchase defaulting debt on the secondary market and then pursue the borrowers for the owed amount. 
woman in Christmas clothes holding money
Nov, 28, 2012
The Consumer Finance Association (CFA), a UK trade association for cash advance loan companies, has released a guide telling consumers how to enjoy—and more importantly afford—this Christmas season. The CFA advises that cash advance loan borrowers set budgets and stick to them. The organization feels that Christmas is one of the seasons in which consumers can get carried away with spending. During Christmas consumers sometimes fail to accurately budget their rent and mortgage along with utility bills. On top of those expenses there are the costs of food, socializing, travel, and, of course, gift purchases.
Hawk watching
Nov, 27, 2012
Consumer rights groups are investigating short-term loan violations in the United Kingdom and implementing new regulations for payday lenders. The Office of Fair Trading (OFT) has opened formal investigations into several payday lenders over hostile debt collection practices. The OFT wrote to all 240 payday lenders highlighting the agency’s concerns over the short-term loan industry. David Fisher, Director of Consumer Credit at the OFT, said the actions of payday lenders are so serious that further investigations are needed.
Canadian flag and gavel
Nov, 20, 2012
In Winnipeg, Canada, a woman is leading a class action lawsuit against two payday loan lenders that she claims have been charging customers excessive interest rates, according to the Winnipeg Free Press. The two companies, The Cash Store and Instaloans, are charged with lending cash advances that had interest rates over amounts that are legal within the province of Manitoba. The current legal amount of interest on payday loans was changed as a result of new rules in 2010.
judge with a gavel signing papers
Nov, 16, 2012
PLS Financial Services, a payday loan lender that operates over 300 retail lending stores, has settled a lawsuit filed against it by the Federal Trade Commission (FTC). The FTC is charged with protecting consumers in America by monitoring for fraud, financial deception, and unfair business practices. The FTC filed suit against PLS Financial Services, but the company avoided a lengthy trial by settling for $101,500.
UK money
Nov, 13, 2012
Almost half of UK paycheck advance customers struggle to repay their loans, and a third took a loan out knowing they could not repay it, according to a United Kingdom consumer watchdog group. Which?, the largest consumer body in the UK, said that half of all payday loan borrowers cannot afford to pay back their debts.
Cash advance kiosk
Nov, 12, 2012
Fourteen people were charged in a case led by the Federal Bureau of Investigation (FBI) regarding the theft of over $1 million from Citibank. The money was stolen using cash advance kiosks at California and Nevada casinos. According to an indictment, the defendants stole the money by exploiting a computer error in Citibank’s electronic transaction security protocols. The scam involved multiple cash advance withdraws within one minute. The FBI, assisted by the Los Angeles Police Department and the Glendale Police Department, arrested 13 of the defendants in the Los Angeles area on Oct. 24 and 25.  
Federal Reserve building
Nov, 7, 2012
The Federal Reserve caused an increase in cost to borrow short-term funding, which now limits banks' abilities to make cheap short-term loans. The Fed’s plan to increase borrowing and lower U.S. interest rates has spiraled into another issue entirely. In order to pay for long-term government bonds, the Federal Reserve sold short-term funding. The short-term loan sales have increased the cost to borrow in the $5 trillion repurchase agreement and have burdened bank’s ability to accept the short-term loan debt.
Bank entrance
Nov, 6, 2012
Two U.S. agencies are scrutinizing payday loan-like products being offered by major banks. Currently, the Federal Deposit Insurance Corporation (FDIC) and the recently created Consumer Financial Protection Bureau (CFPB) are reviewing the payday loans. FDIC Chairman Martin Gruenberg responded to a request for the bank investigations and said he would make it a priority to investigate these banks.
UK flag
Nov, 5, 2012
One of the short-term lending behemoths in the UK, Wonga, may soon have some competition from credit unions. Wonga, whose short-term payday loans often have annual percentage interest rates of 4,214 percent, have been alleged to create cycles of debt for borrowers. In response to these alleged usurious rates London Mutual Credit Union has begun offering short-term one-to-three month loans, which carry interest rates of 26.8 percent. The credit union claims that borrowers can obtain “cash when you need it quickly” with their new short-term loans, according to the Guardian.