Payday Loans News

Man crushed by interest rates
Apr, 17, 2012
In light of Minnesota cracking down on payday loan lenders and driving their services out of the state, a recent report by Minnesotans for a Fair Economy (MFE) attacked U.S. Bank and Wells Fargo for operating through a loophole and still offering short term financing at interest rates of up to 365 percent.
Judge striking down gavel
Apr, 11, 2012
Last week the language on a major payday loan petition reviewed by the Missouri judicial system was struck down in a court ruling, reported The Associated Press. Cole County Circuit Judge Dan Green said the wording on the petition was invalid and “likely to deceive” people who agreed to sign the petition. This invalidation brings into question the legality of the thousands of signatures that the payday loan opponents collected in support of their campaign against the short-term lending industry.
Witness being sworn in
Apr, 5, 2012
The first witness to testify against Dallas-based payday lender, Fast Bucks, broke down on the stand as she recounted her experience with a short-term payday loan she took out. “I didn’t buy no TV. I didn’t buy no jewelry. I didn’t go on trips,” said Endowa Endwarrior as she told the court how her payday loan of more than 500 percent affected her, according to The New Mexican. “It wasn’t any joyous ride to go to the casino. …It was basically to take care of my family and keep a roof over our head.”
Apr, 2, 2012
The Federal Trade Commission (FTC) has filed a lawsuit against a group payday loan lenders that have allegedly placed undisclosed fees on their short-term loans. In addition to the hidden fees, the FTC said these lenders also threatened borrowers with jail time and lawsuits when trying to collect money. The payday lenders in question are all associated with various Native American tribes, and have responded by claiming immunity since they are affiliated with sovereign tribes, and thus cannot be held responsible to United States law.
UK Flag
Mar, 28, 2012
Payday loans and the problems they cause are not exclusive to the United States, as the United Kingdom has found itself in a heated battle with the short-term financing lenders that are popping up all across their nation. “I couldn’t tell anyone—it swallowed me up whole,” said Steve Perry, a 30-year-old British administrator who took out a single payday loan that ballooned into a $34,800 debt obligation within just 18 months, reported Outcome Magazine. “I sat in my car and cried my eyes out.”
Republican elephant
Mar, 21, 2012
The super PAC Restore Our Future received a total of $162,500 from seven large payday loan companies in February of this year. All of the donations were reported to be made in the first week of the month in multiple installments ranging from $2,500 to $35,000, according to The largest payday loan lender to donate money to Romney’s support group refused to comment on their donations. Jamie Fulmer, vice president for public affairs at Advance America, has a similar response. “We don’t discuss any details related to political contributions.”
Writing a letter
Mar, 15, 2012
A letter addressed to Ben Bernanke, Richard Cordray, Martin Gruenberg, and John Walsh has been written and signed by over 250 consumer advocate groups, pleading to the four influential federal regulators to put an end to the new payday loan practice being adopted by big banks.
Silhouette of payday loan protesters
Mar, 8, 2012
Consumer advocates are up in arms as the nation’s largest banks have begun to roll out new financing options that resemble payday loans. Wells Fargo, U.S. Bank, Guaranty Bank and Fifth Third Bank are amongst the top lending institutions that are now allowing short-term loans backed by a borrower’s checking account. While the banks claim their short-term lending practices are not the same as those used by payday loan lenders, consumer groups feel otherwise.
Map of Utah made of money
Mar, 2, 2012
A new bill, HB459, is circulating through Utah’s House and sent that will require payday lenders to report statistical details about their business to the state. The bill is also requiring that all payday loan lenders be registered with the state in order to legally lend money to citizens of Utah. If a lender is not properly registered, their loans held by borrowers may be deemed void, completely banning the lender from collecting any repayment for the loan. The ban on collection not only applies to interest, but also to the principal.
Stop sign
Feb, 29, 2012
While the plans to create a law that will permanently ban payday lenders from setting up shop in Santa Clara County are currently underway, city officials felt the need to curb the additional prospective lenders from opening up new storefronts. County supervisors voted on a 45-day moratorium preventing any additional payday lenders from opening while the county attempts to push their law through. Santa Clara County currently has 64 payday loan lenders residing in low-income neighborhoods, many of which are mere blocks away from each other.