(eyetwist)

Report: Some Credit Unions Are Still Involved In Payday Lending

Loans from federal credit unions are currently capped at 18%, though some qualifying short-term loans can go as high as 28% (plus a $20 fee). These numbers are far below the standard three-digit APRs you see on payday loans, but a small number of credit unions are still figuring out ways to hook customers up with these questionable, high-interest loans. [More]

(frankieleon)

How Predatory Lenders Get Around The Law To Loan Money To Military Personnel

In spite of the Military Lending Act, a law intended to prevent predatory lenders from gouging military personnel with exorbitant interest rates and mountains of fees, some of these lenders have figured out ways to work around the very specific limits of the law, targeting active-duty service members with loans that are almost indistinguishable from the ones forbidden by the Act. [More]

(ChrisGoldNY)

Installment Loan Borrowers Being Saddled With Unnecessary Insurance Add-Ons

Installment loans are typically, shorter-term, high-interest, loans to borrowers with severely damaged credit. These loans usually have longer terms than the 2-3 week turnaround for payday loans, and the borrower agrees to pay the money back in equal, monthly installments, but some of those who have worked at installment lenders say these loans are laden with charges aimed at getting around interest-rate rules and keeping the borrower in a cycle of indebtedness. [More]

(her name is meg)

Report Claims Payday Loans Result In Net Loss Of Money, Jobs

Among the reasons given in support of payday loans — short-term, high-interest loans intended to get the borrower through to the next paycheck — is that they ultimately provide a net good to the economy, allowing the borrower to keep spending and earning interest for the lender. But a recent report casts some doubt on that belief. [More]

(afagen)

State Lawmakers Consider Limits On ‘Payday’ Lawsuit Loans

We’ve written a lot over the years about standard payday loans — short-term, high-interest loans from non-bank lenders — and similar deposit-advance loans offered by some of the nation’s largest banks. But there is a growing form of short-term loan that lawmakers are concerned about — loans to plaintiffs of pending lawsuits. [More]

The Average Payday Loan Borrower Spends More Than Half The Year In Debt To Lender

The Average Payday Loan Borrower Spends More Than Half The Year In Debt To Lender

The idea of the payday loan — a short-term, high-interest loan intended to help the borrower stay afloat until his next paycheck — is not inherently a bad notion. However, a new study confirms what we’ve been saying for years: That many payday borrowers are taking out loans they can’t pay back in the short-term, and that lenders rely on this revolving door format to keep the fees rolling in. [More]

(Meg)

Report: Average $951 Car-Title Loan Results In $2,142 In Interest

If you live in any of the 21 states where car-title loans are available, you’ve probably seen the TV commercials touting the ease of this short-term borrowing option. But a new report claims that the average car-title loan results in revolving door of debt and a mountain of interest payments. [More]

(TaberAndrew)

Professor Tries, Fails To Defend Payday Lending As Legitimate Form Of Credit

Most regular readers of Consumerist know that we’re not exactly fans of payday loans, which charge upwards of 25 times the interest of a high-interest credit card and hundreds of times the interest on a standard loan. And yet, there are people — well-educated people at that — who stick with the argument that payday loans are a good thing. [More]

(bikeoid)

Senators Call For An End To Payday Lending By Banks

Four of the nation’s largest banks — Wells Fargo, Fifth Third Bank, U.S. Bank and Regions Bank — are involved in high-interest, short-term loans that may not always be called “payday” loans but might as well be. Thus, a group of five U.S. senators have asked regulators to put a stop to the practice altogether. [More]

Wells Fargo's "not a payday" loan

Wells Fargo Called Out For Continuing To Offer Payday Loans

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]

(legotech)

Online Payday Loan Peddlers Apparently Skirting The Law By Setting Up Shop On Reservations

When someone wants your money, they’ll go to quite sneaky lengths to get your business. That’s what one Oregon senator says online loan sharks are doing, by opening on Native American reservations so as to get around state and federal consumer protection laws. State laws don’t work on tribal lands, a situation which has turned such lands into veritable havens for payday lenders trying to skirt regulation. [More]

City Attorney Using That Song Everyone Knows To Call Attention To Payday Loan Settlement

City Attorney Using That Song Everyone Knows To Call Attention To Payday Loan Settlement

If there’s some possible way you’ve avoided hearing that pop song where the girl is like hey perhaps you should ring me on the telephone (paraphrasing so as not to unintentionally force you to get it in your head), then we applaud you on your success. But because it seems most of the country, if not the galaxy has heard it, it makes sense that the city attorney for San Francisco is trying to use the song’s popularity in order to spread the word to potential claimants about a recent payday loan settlement. [More]

FTC: Payday Lender Can't Avoid Prosecution By Claiming Tribal Affiliation

FTC: Payday Lender Can't Avoid Prosecution By Claiming Tribal Affiliation

A Colorado payday loan operation that allegedly piled on undisclosed and inflated fees — and which attempted to avoid prosecution by claiming affiliation with Native American tribes — has been sued by the Federal Trade Commission, which says the sovereign immunity laws don’t prevent investigations by the feds. [More]

FTC Gets Some PayDay Lenders To Halt Garnishing Wages Without Court Order

FTC Gets Some PayDay Lenders To Halt Garnishing Wages Without Court Order

A group of nine South Dakota-based payday lenders — doing business under at least 17 different names, but all sharing a common senior executive — has agreed to stop garnishing wages from customers with delinquent accounts, at least until there is some sort of conclusion to the Federal Trade Commission lawsuit against them. [More]

FTC Squashes Payday Site For Putting $54.95 Charge For Empty Debit Card In Fine Print

FTC Squashes Payday Site For Putting $54.95 Charge For Empty Debit Card In Fine Print

You’re broke. How would you like a $54.95 debit card? It’s empty, but if you ever do get any money, you can put up to $2,500 on it. Yay. If that doesn’t sound like a bargain, it’s no wonder that one internet marketer of payday loan referral sites was hiding the fact that he was signing you up for these dodo cards via a pre-checked checkbox on the signup form, and the FTC smacked him down for it. [More]

FDIC Says Pilot Program Offers Alternative to Payday Loans

FDIC Says Pilot Program Offers Alternative to Payday Loans

The FDIC has announced the results of a two-year pilot program designed to help banks offer alternatives to payday loans that would be “safe, affordable and feasible.” Under the test program, participating banks offered loans of up to $2,500 at maximum interest rates of 36% — instead of the 400% offered by some payday lenders. [More]

Rent-A-Center Responds To Predatory Lending Infographic

Rent-A-Center Responds To Predatory Lending Infographic

Sonia, Rent-a-Center’s Public & Community Affairs person, saw our popular post, “How Predatory Lending Works, From Payday Loans To Rent-To-Own” and has a rebuttal that shows how they do math. I showed it to Jess, the creator of the infographic, and he has a rebuttal to the rebuttal. Let the chips fall where they may: [More]

How Predatory Lending Works, From Payday Loans To Rent-To-Own

How Predatory Lending Works, From Payday Loans To Rent-To-Own

You’re a savvy, savvy consumer. You pay your credit card bills in full every month, auto-deduct a generous portion of your paycheck into savings, invest in index funds, and always make sure you’re getting the best deal from your cable and wireless providers. Unfortunately, some of your brethren do not read Consumerist and can get caught up in the jaws of predatory lenders, wasting limited cash on things like payday loans, bad credit cards, and using rent-to-own stores. So let’s take a walk down the wild side and see how each of these bad choices work, in a giant infographic, courtesy of Mint and WallStats, after the jump. [More]