The for-profit college industry has been widely criticized for spending a disproportionate amount of its money — much of it coming from federal student loans — on marketing while having a dropout and loan default rate that is much higher than non-profit schools. Is it possible to have for-profit schools that aren’t just student loan mills? [More]
national consumer law center
SCOTUS Decision Proves States Have Power Over Payday Lenders Claiming Tribal Affiliation
By 5.29.14
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]
Dept. Of Education Sued For Access To Info On Private Debt Collectors
By 5.23.14
After being denied access to what it claims are public documents about financial incentives the U.S. Dept. of Education provides to private debt collectors, a consumer advocacy group has filed suit under the Freedom of Information Act to have those documents released. [More]
Believe It Or Not, Outlawing Payday Loans Will Not Lead To Looting & Pillaging
By 4.6.14
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]
No Surprise Here: Credit Reports Created With Your Online Information Are Mostly Inaccurate
By 3.6.14
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]
Banks Ditched Payday Lending-Like Programs, But What’s Next?
By 1.30.14
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]
Poor Credit Reports Start Vicious Economic Cycle; Can It Be Stopped?
By 1.14.14
For some people, bad credit is a result of being irresponsible. For others, it’s a matter of bad luck and overwhelming circumstance. Alas, the credit reporting agencies don’t make such distinctions, meaning someone whose house went into foreclosure because he lost his job and also had to be hospitalized is treated the same as the person who stopped making mortgage payments because they didn’t feel like it. [More]
Wells Fargo Called Out For Continuing To Offer Payday Loans
By 12.7.12
The Community Reinvestment Act of 1977 requires that FDIC-insured banks be examined and rated on whether or not they are meeting the banking needs in each of the communities in which they are chartered. But a pair of advocacy groups claim Wells Fargo deserves a lowered CRA rating because of loans that smell a lot like payday loans. [More]
