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The CFPB Has Only Just Begun Tackling Financial Services In Its First Four Years

Four years ago, the Consumer Financial Protection Bureau was created – and three years ago it opened its doors – as a safeguard to ensure the financial industry followed the rules when selling products and services to consumers – and a lot has happened since that time. [More]

(Photo: David Blackwell)

Phony Payday Loan Brokers Must Turn Over Rolls Royce, Maserati, Ferrari To Feds

When someone goes hunting for a payday loan — just looking to get their hands on a small amount of cash to tide them over until the next paycheck — it’s bad enough that they can end up trapped in a hellish debt cycle that sees them taking out loan after loan. But the FTC says a Tampa-based operation preyed upon these already-desperate victims by tricking them into applying for payday loans, only to steal their info and what little money they had. [More]

FTC Helps Stop Debt Collection Operations Attempting To Solicit Allegedly Fake Payday Loan Debts

FTC Helps Stop Debt Collection Operations Attempting To Solicit Allegedly Fake Payday Loan Debts

There are few things more disruptive and frustrating than receiving a phone call demanding you pay a debt. Those feeling are amplified a thousand times when you don’t actually owe a debt. Yet, that was the case for consumers contacted by a Georgia-based company that was recently shut down at the request of the Federal Trade Commission. [More]

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]

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]

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]

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]

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]

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]

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]

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]

CashCall Tries To Collect On Illegal Payday Loans, CFPB Says “Nice Try”

CashCall Tries To Collect On Illegal Payday Loans, CFPB Says “Nice Try”

Collecting a debt from people who owe money is one thing. Collecting a debt from people who don’t legally owe because those loans should never have been written in the first place? That’s another problem altogether, and the Consumer Financial Protection Bureau is very upset with one company . [More]

How Does A $1,000 Loan Blow Up Into $40,000 Of Debt?

How Does A $1,000 Loan Blow Up Into $40,000 Of Debt?

We’ll never advise that anyone take out a payday or installment loan with an interest rate of 240%, but if you do find yourself taking out one of these ridiculously high-interest loans, know that defaulting on the payments can land you in the courthouse, where you could end up buried beneath a mountain of debt from which you’ll never dig out. [More]

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Payday Lender To Pay $19 Million For Robo-Signed Collections & Overcharged Servicemembers

Last week, the Consumer Financial Protection Bureau took a big step toward reining in irresponsible, predatory lenders by taking its first enforcement action against a large payday loan operation accused of robo-signing court documents related to debt-collection lawsuits, illegally overcharging military servicemembers and their families, and trying to cover these actions up by destroying documents before the CFPB could investigate. [More]

FDIC & OCC Ask Banks To Please Stop Issuing Payday Loans As “Direct Deposit Advances”

FDIC & OCC Ask Banks To Please Stop Issuing Payday Loans As “Direct Deposit Advances”

While many payday lending operations are not directly tied to federally insured banks, some of the biggest names in banking — most notably Wells Fargo — offer what are effectively payday loans via “Direct Deposit Advance Loans.” But today the FDIC and the Office of the Comptroller of the Currency have given some guidance to the banks they regulate, basically saying “That’s enough of that, don’t ya think?” [More]