Consumerist
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usury
The Variable APR On This Macy's Credit Card Is Either 23% Or 716%
Rick writes: Check out the first bill I received for a Macy's card I just opened last week (because they offered me 20% off if I did). 716% APR has to be some kind of record. Even loan sharks couldn't charge that with a straight face.
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video
Stephen Colbert Supports Payday Lending, So You Probably Should Too
Chicago Democrat Luis Gutierrez introduced a bill last month that supposedly reforms out of control payday lending, where interest rates can exceed 300%, but actually gives payday lenders the freedom to charge annual interest rates that can exceed, um, 300%. It doesn't sound like much of a reform, and in fact Gutierrez has been heavily funded by the payday lending lobby. But luckily for you and me, Stephen Colbert explains why this is all a good thing. More » -
predatory lending
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%.
A new bill proposed by Senator Richard Durbin (D-Ill.) would cap the interest rate on consumer credit transactions at 36%. Is it time for the government to reign in the lending market? Yes, it is. More »
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predatory lending
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. More » -
payday loans
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 » -
usury
Arkansas Attorney General To Payday Lenders: Shut Down Or I'll See You In Court
On March 18, Arkansas Attorney General Dustin McDaniel sent letters to 156 payday lenders, ordering them to stop issuing new loans and void any current and past due loans or face legal action. McDaniel charges that the lenders are violating Arkansas's constitutional prohibition against usurious interest rates. More » -
evil
Payday Lenders Convince Elderly To Assign Social Security Checks To Them, Hand Back Allowances
This writer is quickly growing convinced that payday lenders are the modern version of indentured servitude, trapping consumers in cycles of debt that simply cannot be broken in their lifetimes. The Wall Street Journal published a story last week about payday lenders who make loans to the elderly and effectively take over their Social Security or disability payments, handing back whatever remains after they take their cut. Though it sounds like it should be illegal, payday loan companies are partnering with banks to pull this off. More » -
usury
New Hampshire Gives Payday Lenders The Boot
New Hampshire will become the latest state to keep payday lenders from gouging their patrons. A measure passed by the legislature will cap interest rates on payday loans at 36%, a drastic change for an industry used to bludgeoning underbanked consumers with interest rates exceeding 500%. Payday borrowers spend an average of $793 trying to repay a $325 loan. Let's see how the economic leeches spin this as a loss for consumers. More » -
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usury
Study Says Payday Lenders More Prevalent In Areas Of High Christian Conservative Power
A law professor and associate professor of geography set out to create the most comprehensive map of U.S. payday lenders to date. What they found, to their surprise, was "a surprising relationship between populations of Christian conservatives and the proliferation of payday lenders." And it's not a side effect of a poor population that happens to be Christian, according to the authors: "Our research showed that the correlation between payday lenders and the political power of conservative Christians was stronger than the correlation between payday lenders and the proportion of a population living below the poverty line." More » -
New legislation in Colorado threatens to put a cap on payday lending.
"It took Linda Medlock four years and $8,000 to pay off the $500 she borrowed from a payday lender to make her mortgage payment," says the Denver Post.
Boo, payday lending. Boooo.[Denver Post] (Photo:taberandrew)
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payday loans
Usury Is Good For You
Usury is good for you. That's the lesson from an article in today's WSJ using empirical evidence to defend the practice of charging 200% interest rates.
A randomly selected pool of Latin America borrowers who were just below the normal level of credit worthiness were approved for a 200% 4-month installment loan. A control group was denied based on normal policies. Tracked over the next two years, the group with the high-interest loan made more money, went less hungry, had better credit scores, and were happier than their control group. They also had higher default rates. More »
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usury
Payday Loans Die In DC
In a victory for consumers, Washington D.C. effectively outlawed payday lending today with the passage of the Payday Loan Consumer Protection Act capping lending interest rates at 24%. More » -
politics
Support The Credit Card Act Of 2007
The Credit CARD Act Of 2007 is a bill currently before Congress aiming to end some of the credit card industry's anti-consumer practices. Among H. R. 1461's proposals: More » -
usury
Credit Cards Fees Doubled Over Ten Years
Since 1994, credit card late and overlimit fees have more than doubled. We're no economist, but that doesn't seem to keep pace with inflation. More » -
npr
Payday Lenders Target Poor New Mexicans
NPR's got a nice little story on payday loans in New Mexico. More » -
payday
Almost As Many PayDay Loan Centers As There Are McDonalds
There's almost as many PayDay Loan Centers in America as there are McDonald's. More » -
payday
Do PayDay Loan Centers Target Minorities?
Do payday loan centers target minorities? If there's any doubt in your mind, consider an instructional course offered by the Community Financial Services Association of America (CFSA,) a payday loan trade group. The couse is titled, "Building Community Support: Strategies for Business Survival." More » -
payday loans
Do PayDay Loan Centers Target The Poor?
According to Virginia Delegate Jennifer L. McClellan, "There are over two payday lending stores for every McDonalds in Virginia and three for every Starbucks." More »
usury
New York, 1:48 PM
Wed Nov 11
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