frankieleon

Consumers, Payday Lending Employees Face Off On Proposed Short-Term Lending Rules

Consumer advocates, regulators, and representatives of the small-dollar lending industry descended upon Kansas City on Thursday to discuss the Consumer Financial Protection Bureau’s long-awaited proposed rules intended to rein in predatory lending.  [More]

New Rules Aim To Rein In Predatory Payday Lending, But Will They Work?

Adam Fagen

After nearly four years of studying the issue of high-cost, short-term financial products like payday loans, and auto-title loans, the Consumer Financial Protection Bureau has finally released its proposed rules intended to prevent borrowers from falling into the costly revolving debt trap that can leave people worse off than if they hadn’t borrowed money in the first place.  [More]

Google Invests In Payday Lender While Banning Ads For Payday Loans

Google Invests In Payday Lender While Banning Ads For Payday Loans

Last week, Google announced it would no longer include ads for payday lenders — financial services, outlawed in many states, that offer short-term, small-dollar loans, often with triple-digit interest rates — to protect “users from deceptive or harmful financial products.” All the while, Google’s parent company is investing in a startup that offers loans with annual percentage rates as high as 600%. [More]

Stephan De Witte

1-in-5 Auto Title Loans Lead To Vehicle Seizure

When seeking an infusion of cash to make ends meet, consumers may turn to payday loans, cash advance loans, or auto title loans. While each of these short-term, high-interest loans pose a financial risk to borrowers, only one has the ability to take away what is often a person’s largest asset: their vehicle. And, according to a new report, one-in-five consumers who take out a single-payment auto title loan have their car seized by lenders. [More]

Burned By Too Many Scams, Microsoft Bans Tech Support Ads In Bing Search Results

Burned By Too Many Scams, Microsoft Bans Tech Support Ads In Bing Search Results

Imagine if an entire section of the phone book (remember those?) was dominated by fake companies and scam artists. You’d hope the phone book people would wise up and get rid of that section. That appears to be Microsoft’s way of thinking as it bans tech support ads from its Bing search results. [More]

Payday Loan, Check Cashing Operation Trained Employees To “Never Tell Customer The Fee”

Payday Loan, Check Cashing Operation Trained Employees To “Never Tell Customer The Fee”

All American Check Cashing collects approximately $1 million in check-cashing fees each year. But according to federal regulators, the company, which also provides payday loans, obtains those fees through deceptive means, including refusing to tell customers what they will be charged and lying to prevent consumers from backing out of transactions.  [More]

Google Bans Payday Loan Ads In Search Results

Google Bans Payday Loan Ads In Search Results

Google can’t stop you from searching for “payday loans,” and the company’s search engine will continue to turn up results for people inquiring about these short-term, high-interest loans, but it can choose to stop running ads for payday lenders. [More]

TLFagan

Proposed Rules Would Take Away Banks’ “Get Out Of Jail Free” Card

Many bank accounts, and almost all credit cards, wireless services, private student loans, and payday loans contain clauses in their contracts that strip consumers of their right to sue these companies, and their right to join others in a class action, effectively allowing businesses to sidestep the legal system. While lawmakers in Congress debate the issue, and the U.S. Supreme Court has repeatedly given its approval to these practices, the Consumer Financial Protection Bureau is making good on its pledge to restore consumers’ constitutional right to having their day in court. [More]

Take This Weight-Loss Supplement And Give Up Your Right To A Jury Trial

Take This Weight-Loss Supplement And Give Up Your Right To A Jury Trial

If you wanted to get an idea on the ridiculous overuse of forced arbitration, here’s one of the more absurd examples we’ve seen — a weight-loss supplement with the added non-benefit of stripping users of their right to sue the company that made the pills. [More]

C x 2

Online Payday Lenders Could Be Worse Than Traditional Payday Lenders

The typical outsider’s view of payday lending involves seedy looking storefront shops in strip malls near pawn shops and bail bonds, so the idea of going to a short-term lender with a cleanly designed, professional website might seem more appealing (not to mention convenient). However, a new report finds that online payday loans may wreak more financial havoc than their bricks-and-mortar counterparts. [More]

frankieleon

Survey: 9-in-10 Christian Consumers Think Payday Loans Hurt Borrowers

Expensive. Harmful. Predatory. Those are just a few of the words that members of faith-based groups used to describe payday and auto-title loans in a recent report that asked congregants in 30 states to detail their experience with the short-term, high-cost loans and similar financial products. [More]

eyetwist

Pennsylvania Man Charged With Racketeering For $688M Payday Loan Operation

A Pennsylvania man, known for helping to usher in the payday loan movement, has been charged with racketeering for his alleged part in a scheme that bilked more than $688 million from consumers and defrauded 1,400 others from a million-dollar settlement.  [More]

(GotCredit)

Unregulated Preparers, Lack Of Disclosures & Costly Financial Products Put Your Tax Refund At Risk

Each year during tax time millions of consumers put their financial future in the hands of strangers, trusting that these tax preparers — who are largely unregulated — know the rules, will get them the best possible result (hopefully a refund), and won’t sell them on a product that costs more than it’s worth. But in the world of complicated tax codes and credits, consumers continue to face a long list of risks, including untrained preparers, undisclosed fees, and dangerous refund anticipation products.  [More]

Hammerin Man

Servicemembers Twice As Likely To Submit Complaints About Unsavory Debt Collection Practices

While millions of Americans are no strangers to questionable debt-collection practices, a new report from the Consumer Financial Protection Bureau shows that the men and women in the armed forces are twice as likely than their civilian counterparts to file a complaint when a collector crosses the line.
[More]

C x 2

Religious Groups Call On DNC Chair To Denounce Pro-Payday Loan Bill

Faith-based community organizations are among the loudest voices in the battle against predatory lending practices like payday loans. And while most of their efforts are on education and local reforms, a coalition of these groups is thinking nationally, calling on Congress, including the chair of the Democratic National Party, to rethink their support a pro-payday loan piece of legislation. [More]

Payday Loan Operator MoneyTree Latest Company To Fall For CEO Email Scam

Payday Loan Operator MoneyTree Latest Company To Fall For CEO Email Scam

Employees of payday lending company Moneytree are used to taking the personal information of customers in exchange for short-term cash infusions. Some of those workers recently found themselves on the other side of the fence after someone at the company fell for the CEO email scam.  [More]

frankieleon

Operation That Illegally Debited Consumers’ Bank Accounts Must Repay $43M

Months after federal regulators ordered a data broker to pay $7.1 million for selling consumers’ sensitive information to scammers, a court ordered one of those alleged scammers and its subsidiaries and operators to provide $43 million in relief to victims. [More]

eyetwist

DNC Chair Backs Pro-Payday Loan Bill; Thinks 300% Interest Is A Consumer Protection

You currently can’t get Republican and Democratic lawmakers to agree on a lunch order, let alone jointly support legislation. But one controversial piece of legislation is not only garnering support from both sides of the aisle, it’s also got the Chair of the Democratic National Committee pushing for legislation that would undermine the Consumer Financial Protection Bureau’s ability to regulate predatory lending. [More]