Karen Chappell

Faith V. Greed: The Battle Between Faith-Based Organizations And The Payday Loan Industry

“The Bible condemns gaining wealth through usury; and the writers of Scripture warn about gaining wealth through exploiting the poor… [but] The State of Alabama allows Payday lenders to charge an annual interest rate of 456%.” [More]

Montel Williams Defends Hawking Payday Loan Generator Money Mutual

Montel Williams Defends Hawking Payday Loan Generator Money Mutual

By now we know that celebrities (and pseudo-celebrities) often lend their names to products that may or may not have devastating effects on consumers. Of course, hawking a product for a paycheck doesn’t automatically make the spokesperson in question an expert on the product or the consequences of using it.  [More]

(Alan Cleaver)

FTC Files Lawsuit To Shut Down Deceptive Payday Loan Debt Relief Operation

It’s probably safe to assume that consumers stuck in the payday loan debt-trap have enough financial issues without being deceived by a company promising to make their debts disappear. There may be one less unsavory debt relief company around after the Federal Trade Commission sued to stop an operation that targeted millions of consumers. [More]

(Hammerin Man)

Protecting Military Servicemembers From Predatory Loans Is A National Security Issue

In recent years, we’ve written a number of stories about laws aimed at protecting active-duty servicemembers and their families from predatory loans and the businesses that try to take advantage of loopholes in these rules. Some readers have asked why members of our armed forces merit protections not available to civilians. But this isn’t about just doing something nice for our soldiers; it’s about removing a threat to national security. [More]

(Hammerin Man)

CFPB Urges DoD To Close Loopholes That Cost Military Personnel Millions Of Dollars

Nearly three months ago the Obama administration and the Department of Defense announced a proposed overhaul of the Military Lending Act that would aim to close loopholes regularly exploited by predatory lenders in order to sink their hooks into military borrowers. Now, a new report from the Consumer Financial Protection Bureau highlights just how devastating – and costly – those loopholes can be for servicemembers. [More]

(frankieleon)

22 States Ask Defense Dept. To Do More To Protect Servicemembers From Predatory Lenders

When the Military Lending Act was introduced in 2007, it aimed to prevent predatory lenders from gouging military personnel with exorbitant interest rates and mountains of fees. While those protections have proven to be successful in many ways, lenders have since learned how to work around specific limits of the law. Now, attorneys general from 22 states are asking the Department of Defense to do more to shield servicemembers from unscrupulous lenders. [More]

Online Payday Loans Cost More, Result In More Complaints Than Loans From Sketchy Storefronts

DCvision2006

We understand why someone might opt for getting a payday loan online instead of doing it in person. It’s easier, faster, doesn’t require going to a shady-looking storefront operation where some trained fast-talking huckster might try to upsell you unnecessary add-ons or tack on illegal insurance policies. But the truth is that people who get their payday loans online often end up in a worse situation than they would have if they’d applied in person. [More]

(Hammerin Man)

Defense Dept. Aims To Close Predatory Lending Loopholes For Military Personnel

While the Military Lending Act aims to protect military personnel and their families from predatory lenders’ often unsavory lending practices that include high interest rates and excessive fees, it still allows for clever lenders to get their hooks into borrowers. That’s why the Obama Administration and the Department of Defense announced a proposed overhaul of the rules – much to consumer advocates’ delight. [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]

If you can't pay back the 0% interest loan in full within 30 days, TitleMax refers you to an out-of-town lender that can refinance the loan at a triple-digit interest rate.

Auto-Title Lender Skirts Law By Giving Away Cash For Free

Several cities in Texas have recently enacted laws intended to drive out or rein in short-term, high-interest lenders offering auto-title loans, in which borrowers put up their cars as collateral for short-term loans averaging around $1,500. But one lender has figured out a way to get around those laws — by giving away free cash and redirecting customers elsewhere when they need to refinance. [More]

Arizona Becomes 16th State To Punch Payday Lenders In The Face

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]

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]

Government To Banks: Why Are You Making Predatory Loans With Taxpayer Money?

Government To Banks: Why Are You Making Predatory Loans With Taxpayer Money?

The bailed-out banks have found a new way to annoy the government, according to the Congressional Oversight Panel, the body named by Congress to oversee the federal bailout. Chair of the committee and friend of the blog, Elizabeth Warren, is concerned that the same people who are subsidizing the banks are being targeted by abusive lending practices, says the Wall Street Journal

National Usury Limit Could Reduce Number Of People Paying Debt Until They Die

National Usury Limit Could Reduce Number Of People Paying Debt Until They Die

For about 30 years, there has been effectively no limit on the interest rates lenders can charge. This means some loans—especially payday loans, tax refund anticipation loans, overdraft protection loans, and car title loans—can have effective interest rates as high as 3,500%.

Meet The Savings & Loan That Destroyed Wachovia

Meet The Savings & Loan That Destroyed Wachovia

60 Minutes recently took a look at World Savings Bank, the acquisition that ultimately wounded Wachovia so badly that it had to be acquired by Wells Fargo. What was wrong with an institution for which Wachovia was willing to pay $25 billion? Well, one whistleblower claims that World Savings was engaged in fraud and predatory lending — tricking its customers into signing up for dangerous “option-arm” or (as they cheerfully called them) “pick-a-payment” loans.

Ohio Continues To Punch Pay Day Lenders In The Face

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.

Car Title Loans Are Liable To Leave You Taking The Bus

Car Title Loans Are Liable To Leave You Taking The Bus

You surely already know better, because you’re a loyal Consumerist reader, but stay far, far away from the form of legalized usury known as car title loans! CNN has published an overview of the industry, noting that APRs frequently exceed 200%, and that added fees and loan “rollover” options help keep borrowers in a cycle of debt.