Payday Loans News

Scammer with phone to ear
Feb, 22, 2012
Authorities from the Federal Trade Commission (FTC) announced a successful first-of-its-kind investigation that led to the thwarting of a multi-million dollar payday loan scam that sucked money out of U.S. citizens on threat of arrest and use of intimidation.  
Money coming out of computer screen
Feb, 13, 2012
A North Carolina couple shared their horrible payday loan experience involving high interest, misrepresentation, and financial hurt with ABC News. But their experience wasn’t entirely negative, as from this mess a happy ending emerged.   Donna Seese and her husband found themselves in economic trouble as they were unable to afford even the most necessary of purchases.   “We were looking for basic necessities,” Donna told ABC. “You know gas money, food money.”  
Chess Match
Feb, 10, 2012
The war over payday loans in Missouri continues to thrive as a petition has gained momentum to establish an interest rate cap on installment and payday loans.   The petition would cap the interest rate for these short term forms of borrowing at 36 percent—a significant decrease considering some payday loans are offered at interest rates of several hundred percent. But surprisingly, a crowd of several hundred strong gathered at the steps of the state’s Capitol to fight against the petition, citing their fear that the cap will drive short term lenders away from the state.  
Three different hourglasses
Feb, 7, 2012
Sen. John Lamping (R-MO) proposed a bill that would extend the amount of time payday loan borrowers had to pay off unsecured loans of $500 or less from 31 days to 90 days. This law would make it illegal for payday lenders to rollover loans beyond 90 days.   While the senator’s legislation would target the term limit of payday loans, it fails to address the problem of interest rates that critics often claim is usurious. But Lamping said he would not support a cap, as that would drive payday loan companies away from the state.  
Money raining down from the sky
Jan, 24, 2012
A new non-profit group called Communities Creating Opportunity is making an effort to create a community credit agency in Kansas City. The credit agency’s goal is to provide low-interest payday loans to consumers who frequent cash advance lenders. They believe they will be a very good alternative to traditional payday loan lenders, as they will provide the same service, but at a maximum interest rate of 36 percent.   The emergence of this non-profit comes at a time when Kansas City volunteers are circulating petitions to include a loan cap on the fall 2012 Missouri ballot.  
Suspicious man working on a laptop computer
Jan, 19, 2012
Storefront payday loan lenders are banding together in light of the Consumer Financial Protection Bureau’s (CFPB’s) recent announcement of forcing payday lenders to adhere to certain financial laws.   Earlier this month, the CFPB declared all non-bank entities—which include payday loan lenders—are to abide by the Truth in Lending Act and Equal Opportunity Act. But the cash advance lenders claim that such a decree will force their customers to pursue even more dangerous and volatile loans from lenders online.  
Magnifying glass on a man holding two chains together
Jan, 17, 2012
Earlier this month, the Consumer Financial Protection Bureau (CFPB) launched an expansion to their bank supervision program, which began in July, and is now hoping to apply those same bank supervisions to “nonbank” entities. Their goal is to ensure nonbanks are held to the same rules and restrictions that traditional banks adhere to.  
Woman holding hundred dollar bill
Jan, 10, 2012
Nicky Belgrove, a 27 year old interior designer, took out three payday loans that had a cumulative total of £550—roughly $850. After merely three months, those three payday loans snowballed into £3,000, or the equivalent of $4,639. In just three months, this borrower wound up owing nearly 450 percent on her loans.  
House and money on a seesaw
Jan, 4, 2012
Struggling to make mortgage payments is not exclusive to the United States. Britain has seen a sharp rise in homeowners turning to other forms of credit in order to keep current on their mortgages. The Guardian reported that over six million people have used alternative forms of credit ranging from intentional overdrafts to credit cards and everything in between.   But, according to Shelter, a U.K.-based homeless charity, the most foreboding fact is that nearly a million of those borrowers have turned to payday loans in order to keep hold of their property.  
Native American profile with headdress
Dec, 27, 2011
Indian tribes may have found an industry outside the arena of casinos and gambling. A reservation located deep in Montana is pioneering the way for its other sovereign counterparts as it begins a new venture in the world of payday lending.   Neal Rosette, Chippewa Cree’s former executive administrative officer, and now the CEO of Plain Green Loans, felt this was the perfect time and the perfect industry to break into. “We are sovereign nations and we have the ability to create our own laws that regulate our businesses such as this,” he said to The Associated Press.