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]

Judge Rules Payday Lender With Tribal Affiliation Has To Play By FTC Rules

Judge Rules Payday Lender With Tribal Affiliation Has To Play By FTC Rules

Predatory payday lenders can no longer escape federal regulators by claiming affiliations with American Indian tribes. A U.S. District Court handed the Federal Trade Commission a significant victory in the crackdown of such deceptive payday lenders. [More]

Another Payday Loan Biggie Being Probed By CFPB

Another Payday Loan Biggie Being Probed By CFPB

Days after the Consumer Financial Protection Bureau revealed that is currently investigating the lead-generating practices of MoneyMutual — the company with the Montel Williams ads that puts borrowers in touch with payday lenders — comes news that the Bureau is taking a peek under the hood of World Acceptance Corp. (aka World Finance), one of the country’s largest high-interest installment lenders. [More]

FTC Shuts Down Debt Collecting Scheme That Pretended To Be From The Government

FTC Shuts Down Debt Collecting Scheme That Pretended To Be From The Government

Debt collectors have been known to intimidate, deceive and even threaten to take your children away when trying to separate you from your hard-earned cash. Just remember, it’s illegal for the collectors to threaten to arrest you, and it’s definitely illegal for them to pretend to be from the government in order to make you pay up. However, it’s those same tactics that have a New York-based company in hot water. [More]

Feds Investigating That MoneyMutual Company With The Montel Williams Ads

Feds Investigating That MoneyMutual Company With The Montel Williams Ads

If you’ve caught any daytime or late-night TV in the last few years, you’ve probably noticed talk show host Montel Williams shilling for a service called MoneyMutual that connects needy borrowers with Payday lenders. Newly released documents show that the company’s lead-generation process is under investigation by the federal Consumer Financial Protection Bureau. [More]

States’ Attempts To Reform Payday Lending Are Often Just Smoke & Mirrors

States’ Attempts To Reform Payday Lending Are Often Just Smoke & Mirrors

Payday lending has been getting a makeover of sorts recently. A number of banks, including Wells Fargo, have discontinued their payday-like direct deposit advance programs after federal regulators tightened their guidance over the high-cost products. Now, a number of state legislatures are discussing payday lending reform bills, which they say will make short-term loans safer for consumers. But are they truly helpful to those who need them? Not quite, say consumer advocates. [More]

No Surprise Here: Credit Reports Created With Your Online Information Are Mostly Inaccurate

No Surprise Here: Credit Reports Created With Your Online Information Are Mostly Inaccurate

More than 64 million Americans are cut off from access to traditional banking because they lack credit history. To better serve these unbanked consumers financial institutions are relying on the promises of big data brokers to accurately determine the creditworthiness of consumers. But is the new method a reliable way to provide affordable access to credit? Not really, a new report by the National Consumer Law Center points out. [More]

Former Pizza Hut And KFC Buildings Never Escape Their Roots

Former Pizza Hut And KFC Buildings Never Escape Their Roots

If this great nation has a massive supply of anything, it’s abandoned chain restaurant buildings. Fortunately, ingenious business owners find new uses for them, turning fast-food joints into ethnic restaurants and … well, pretty much anything with four walls into a payday loan place or a pawn shop. [More]

RISE Credit: A Safe Short-Term Loan Option Or A Payday Wolf In Rocky’s Sweatshirt?

RISE Credit: A Safe Short-Term Loan Option Or A Payday Wolf In Rocky’s Sweatshirt?

Consumers looking for relief from the cycle of debt often associated with the use of payday loans may have seen the light at the end of the tunnel with RISE Credit. The products billed as the next generation in financial products has it all – a true American hero featured in its ads and the promise to give you a financial comeback. [More]

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Senator Endorses USPS Plan To Enter Financial Services Arena, Offer Payday Lending Alternative

With traditional banking institutions finally out of the payday lending game, who’s left to swoop in to take care of the unbanked? Apparently, Senator Elizabeth Warren (D-MA) thinks the United States Postal Service has what it takes. [More]

Banks Ditched Payday Lending-Like Programs, But What’s Next?

Banks Ditched Payday Lending-Like Programs, But What’s Next?

Bank may have exited the payday lending business this month, but that doesn’t mean their next foray into small dollar loans will be any less predatory. That’s why the National Consumer Law Center is urging banks to show leadership in developing affordable credit options for consumers. [More]

Can Postal Service Stay Alive By Cashing Checks & Selling Prepaid Debit Cards?

Can Postal Service Stay Alive By Cashing Checks & Selling Prepaid Debit Cards?

The once-great US Postal Service continues to sink into obscurity and financial oblivion, a destiny that will probably not be saved by all the postage stamp price increases in the world. But could the USPS keep its head above water by offering the financial services that are generally reserved for run-down strip malls? [More]

CFPB Tackles Mortgage Protections For Borrowers In The Armed Forces

CFPB Tackles Mortgage Protections For Borrowers In The Armed Forces

The CFPB last week unveiled a set of rules (PDF) to protect mortgage borrowers, especially those who are military servicemembers. [More]

And Then There Was One: Wells Fargo, U.S. Bank Discontinue Payday Loan Products

And Then There Was One: Wells Fargo, U.S. Bank Discontinue Payday Loan Products

The small victories are adding up in the battle against predatory loans this week. Wells Fargo and U.S. Bank announced they will discontinue high-risk payday lending programs. [More]

Banks That Market To & Serve Military Also Tacking On Huge Fees

Banks That Market To & Serve Military Also Tacking On Huge Fees

One might assume that banks marketing to U.S. military servicemembers would not be out to nickel and dime these men and women with unnecessarily high fees on their accounts. But among those financial institutions levying the highest level of fees on its account-holders are several that not only market to the military but also have branches on military bases. [More]

A Small Victory Against Predatory Lending? Regions Discontinues Payday Loan Product

A Small Victory Against Predatory Lending? Regions Discontinues Payday Loan Product

It’s only a small victory in the battle against predatory loans, but there’s now one less bank offering a high-risk payday lending product to consumers. Regions Bank has closed the door on its payday loan-esque deposit advance product. [More]