Bank Of America Agrees To Scan For Illegal Payday Lenders In NY

Bank Of America Agrees To Scan For Illegal Payday Lenders In NY

Payday lending is illegal in more than a dozen states, including New York, but some lenders manage to fly under the radar by operating online or hiding their loans as part of another business. In an effort to crackdown on loans that violate state laws, New York has created a database for banks to use to help identify sketchy lenders, and Bank of America — no stranger to the issue of questionable loans — is the first to sign on. [More]

The Mad Genius Behind The Rebirth Of Hydrox, Astro Pops And Maybe Marshall Field’s

The Mad Genius Behind The Rebirth Of Hydrox, Astro Pops And Maybe Marshall Field’s

We’ve all felt the sting of losing a beloved brand when a company goes out of business, stops making your favorite candy or gets sold off bit by bit to the highest bidder. But what if you could resurrect those treasured relics of days gone by and bring them back anew? And how would it even be possible? [More]

This Is One Of The Scammiest Payday Loans We’ve Ever Seen

This Is One Of The Scammiest Payday Loans We’ve Ever Seen

Many payday loans have confusing terms and questionable fees that end up costing the borrower a lot more than they’d planned on when they took out the short-term loan. But it’s mind-boggling how one predatory lender managed to squeeze money from borrowers through an automatic opt-in renewal program that turns a $300 loan into $975 worth of payments in only a few months. [More]

(Mark Turnauckas)

100 People Waited In A Rainy Line For 24 Hours To Score Free Chick-fil-A For A Year

What would you do for 52 free meals? Would you forgo the delights of home and sleeping in your own comfortable, dry bed to camp in line overnight through the rain? Because that’s what 100 people hungry for free Chick-fil-A did in Baltimore. [More]

SCOTUS Decision Proves States Have Power Over Payday Lenders Claiming Tribal Affiliation

SCOTUS Decision Proves States Have Power Over Payday Lenders Claiming Tribal Affiliation

While a U.S. Supreme Court decision yesterday in the case of a Michigan Native American tribe’s allegedly illegal casino appears to have nothing to do with payday lending, experts say it’s a game changer in states’ efforts to rein in the often predatory industry. [More]

CFPB Report Confirms Payday Lenders And Debt Collectors Are The Worst

CFPB Report Confirms Payday Lenders And Debt Collectors Are The Worst

For decades, payday lenders and debt collectors did their work while being largely ignored by federal financial regulators. And a new report from the Consumer Financial Protection Bureau, which recently gained oversight authority over the largest of these businesses, calls out many of the sketchy, sometimes illegal, practices some in these industries have been getting away with for far too long. [More]

Bill Would End Door-Slot Mail Delivery For 15 Million Addresses, Save USPS $2 Billion Annually

Bill Would End Door-Slot Mail Delivery For 15 Million Addresses, Save USPS $2 Billion Annually

A bill that would phase out door-to-door mail delivery over the next decade passed its first hurdle on the way to becoming a law. [More]

(Kevin Dean)

FTC Shuts Down Texas Debt Collector Who Threatened To Arrest Consumers

Debt collection is a generally unsavory operation. Thankfully, there’s now one less scummy, lying collector calling consumers. A Houston-based company is out of business and must pay $1.4 million after being charged with unsavory practices. [More]

Banks Inside Walmart Stores Lead Nation In Raking In Fees From Customers

Banks Inside Walmart Stores Lead Nation In Raking In Fees From Customers

A number of different banks operate branches inside more than 1,000 Walmart stores in the U.S., and many of these banks market themselves to consumers who may not be targeted by larger institutions because of low income or lack of savings and credit. A new analysis of the institutions most frequently found at Walmart found that these banks are also the most reliant on charging fees to their customers. [More]

Stories You Might Have Missed Because You Were Too Busy Being Awesome

Stories You Might Have Missed Because You Were Too Busy Being Awesome

We post a lot of stories during the week, and we know that most of you have jobs, families, lives, hobbies, nagging itches and other more important things to do than read every single thing we write. So for those who might be playing catch-up on the weekend, here are some of the things you might have missed… [More]

Payday Lenders Can’t Use Tribal Affiliation To Garnish Wages Without Court Order

Payday Lenders Can’t Use Tribal Affiliation To Garnish Wages Without Court Order

For years, a handful of sketchy payday lenders have been using purported affiliations with tribal lands to try to skirt federal and state laws. But courts and regulators have recently been cracking down on these operations, saying that a tribal connection does not shield a business from prosecution. One operation facing charges from the Federal Trade Commission has now agreed to pay nearly $1 million in penalties over charges that it illegally garnished borrowers’ wages and wrongfully sued them in tribal courts. [More]

Believe It Or Not, Outlawing Payday Loans Will Not Lead To Looting & Pillaging

Believe It Or Not, Outlawing Payday Loans Will Not Lead To Looting & Pillaging

Critics of payday lending say the practice traps many borrowers in a debt spiral, forcing them to take out additional loans to pay back the first. Yet these short-term loans do have proponents (many of them profiting from the industry) who claim that without this pricey option for quick cash, desperate consumers will turn to more unsavory means, leading to increased crime rates and other doom and gloom predictions. But does that really happen? [More]

CFPB Receives Double The Consumer Complaints In 2013, But Sought Fewer Explanations

CFPB Receives Double The Consumer Complaints In 2013, But Sought Fewer Explanations

The Consumer Financial Protection Bureau heard a lot from consumers in 2013. The agency received the most complaints in its history, including those from three new areas – payday loans, money transfers and debt collections. But it appears that fewer complaints were sent to offending companies for review and response. [More]

Stories You Might Have Missed Because You Were Too Busy Being Awesome

Stories You Might Have Missed Because You Were Too Busy Being Awesome

We post a lot of stories during the week, and we know that most of you have jobs, families, lives, hobbies, nagging itches and other more important things to do than read every single thing we write. So for those who might be playing catch-up on the weekend, here are some of the things you might have missed… [More]

(eyetwist)

CFPB In “Late Stages” Of Working On Rules To Stop Predatory Payday Lending

Lisa took out a payday loan to help pay her rent. When she couldn’t repay the loan after 14 days she rolled it over, bringing her total debt to $800. After repaying more than $1,400, she remains stuck in the revolving door of debt associated with payday lending. It’s stories like these that the Consumer Financial Protection Bureau aims to stop with new rules to regulate the payday loan industry. But those in the payday industry say Lisa should have simply known better. [More]

The CFPB found 82% of loans are 
renewed within fourteen days, and this percentage varies by only three percentage points across 
the three groups of states.

4 Out Of 5 Payday Loans Are Made To Consumers Caught In Debt Trap

The revolving door that is the payday lending debt trap is real. The high-interest, short-term loans may even be more damaging to consumers that previously thought. Four out of five payday loans are rolled over or renewed every 14 days by borrowers who end up paying more in fees than the amount of their original loan, a new Consumer Financial Protection Bureau report finds. [More]

Most Debt Collector Complaints Made By Consumers Being Hounded For Money They Don’t Owe

Most Debt Collector Complaints Made By Consumers Being Hounded For Money They Don’t Owe

We’re not sure how many times we’ve said it, but it’s worth repeating: Debt collectors are the worst. It’s not just that they’re often rude and occasionally violate the law. What really puts collection agencies at the bottom of the barrel is the fact that they consistently go after debt that consumers simply don’t owe. [More]

Montana Consumers Win Fight Against Online Payday Lender, Loan Debt Will Be Forgiven

Montana Consumers Win Fight Against Online Payday Lender, Loan Debt Will Be Forgiven

Montana consumers fill the winner’s column after winning a long-standing fight with the online payday lending industry. After three years of litigation, hundreds of hundreds of affected borrowers in the state will have their loans forgiven and receive their share of a $233,000 settlement. [More]