payday-lending

Arizona Becomes 16th State To Punch Payday Lenders In The Face
Arizona is about to say goodbye to predatory payday lenders who issue loans with annual interests exceeding 460%. On Thursday a decade-old law will expire, capping interest rates at 36%. The predatory lenders begged to keep the law in force, but voters and the legislature just sat back and gave the industry a big, slow, deserved punch right in the face. More »

Lose Your Job? Don't Worry, Our Exorbitant Payday Loan Fees Are On Us

—>Do you need cash right now, but are worried that you might lose your job in the next two weeks? Guarantees for customers who lose their jobs have worked for Hyundai, Ford, GM, and Sears, so now the practice has expanded to the payday loan industry.  More »

House Preparing To Legalize Payday Loans With 391% APRs

—>A House subcommittee wants to legalize payday loans with interest rates of up to 391%. Lobbyists from the payday industry bought Congress' support by showering influential members, including Chairman Luiz Gutierrez, with campaign cash. The Congressman is now playing good cop, bad cop with the payday industry, which is pretending to oppose his generous gift of a bill.  More »

Ohio Continues To Punch Pay Day Lenders In The Face

—>Check 'N Go, a pay day lender, is closing 36 of its 71 stores in Ohio after voters failed to repeal a law that stopped them from charging asinine interest rates.   More »

Ohio Payday Lenders Lie, Bribe The Homeless In Attempt To Overturn Usury Limits

—>Ohio payday lenders, still smarting from their punch in the face, are turning to lies and deceit to qualify a ballot initiative that would overturn the state's recently approved usury limits. The industry's petition gatherers are telling people that the initiative would "lower interest rates," even though it would raise the maximum allowable APR from 28% to an astounding 391%. They're also giving dollars to illiterate homeless people who sign the petition.  More »

So What's Replacing Boarded-Up Payday Lenders? Credit Unions!

—>Consumers in Washington D.C. have apparently flocked to credit unions since the district outlawed payday lending last year. Payday lenders whined that lending without 300% APRs was utterly unaffordable, but credit unions are proving that it's possible to make long-term, low-dollar loans with interest rates as low as 16%.  More »

Ohio Punches Payday Lending Industry In The Face, Breaks Its Nose, And Laughs
Gov. Ted Strickland, of the great state of Ohio, has signed a bill that punches the rapidly growing payday lending industry in the face. As we've mentioned before, the bill will cap interest rates at 28% and limits consumers to 4 payday loans per year. A typical payday loan charges around $15 per $100 borrowed on a 2 week loan, which works out to an interest rate of 391%.  More »

Ohio Proposes Punching Payday Lending Industry In The Face
The Columbus Dispatch says that Ohio lawmakers... More »

FDIC Launches Program Encouraging Banks To Offer Small Dollar Loans

—>The FDIC has announced a program designed to study and encourage small dollar lending programs designed to compete with payday lenders. Under the program banks would offer "loan amounts of up to $1,000, mandatory savings components, payment periods that extend beyond a single pay cycle, interest rates below 36 percent, low or no origination fees, no prepayment penalties, prompt loan application processing, and access to financial education to help with asset building."  More »