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]
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Another Payday Loan Biggie Being Probed By CFPB
By 3.14.14
Days after the Consumer Financial Protection Bureau revealed that is currently investigating the lead-generating practices of MoneyMutual — the company with the Montel Williams ads that puts borrowers in touch with payday lenders — comes news that the Bureau is taking a peek under the hood of World Acceptance Corp. (aka World Finance), one of the country’s largest high-interest installment lenders. [More]
Proposed Rules Take Second Stab At Holding For-Profit Colleges Accountable For Graduate’s Success
By 3.14.14
The Department of Education is making a second attempt to rein in those for-profit colleges that benefit from financial aid to students without providing them the education needed to find gainful employment after graduation. But some consumer advocates say the proposed regulations don’t do enough to help students. [More]
Feds Investigating That MoneyMutual Company With The Montel Williams Ads
By 3.13.14
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
By 3.12.14
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]
No Surprise Here: Credit Reports Created With Your Online Information Are Mostly Inaccurate
By 3.6.14
More than 64 million Americans are cut off from access to traditional banking because they lack credit history. To better serve these unbanked consumers financial institutions are relying on the promises of big data brokers to accurately determine the creditworthiness of consumers. But is the new method a reliable way to provide affordable access to credit? Not really, a new report by the National Consumer Law Center points out. [More]
CFPB Sues ITT Tech For Allegedly Exploiting Students, Pushing Predatory Loans
By 2.26.14
The Consumer Financial Protection Bureau filed a federal lawsuit against a well-known for-profit college chain, alleging the company exploited its students and pushed them into high-cost private student loans that were likely to end in default. [More]
Federal Lawsuit Claims For-Profit College Group Misled Students, Falsified Documents
By 2.20.14
We’ve heard horror stories about some for-profit colleges from students: the false promise of gainful employment after completing a short program at the cost of thousands of dollars. Now come claims from former employees about alleged fraud carried out by officials at a for-profit college group thanks to a federal lawsuit. [More]
RISE Credit: A Safe Short-Term Loan Option Or A Payday Wolf In Rocky’s Sweatshirt?
By 2.12.14
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]
Now The Feds Are Investigating Operators Of Everest, WyoTech & Heald Colleges
By 2.6.14
Last fall, the state of California sued Corinthian Colleges, Inc. — better known as the company that operates a number of the for-profit colleges whose ads dominate daytime TV commercial breaks — over allegations that it lied to students about job-placement stats and to investors about its graduates’ success rate. Yesterday, CCI revealed that it’s also being investigated by two federal agencies and can’t open any new locations for the time-being. [More]
51 Groups Call On President To Not Let For-Profit Colleges Weaken “Gainful Employment” Rule
By 2.4.14
Last summer, the Dept. of Education began the process of reviewing a new rule aimed at those educational institutions that failed to demonstrate their students could find gainful employment in the fields in which they had been trained. The for-profit college industry has managed to weaken the rule, but today more than 51 different groups — including advocates for consumers, veterans, and students — asked the President to help prevent this rule from becoming toothless. [More]
Senator Endorses USPS Plan To Enter Financial Services Arena, Offer Payday Lending Alternative
By 2.3.14
With traditional banking institutions finally out of the payday lending game, who’s left to swoop in to take care of the unbanked? Apparently, Senator Elizabeth Warren (D-MA) thinks the United States Postal Service has what it takes. [More]
Banks Ditched Payday Lending-Like Programs, But What’s Next?
By 1.30.14
Bank may have exited the payday lending business this month, but that doesn’t mean their next foray into small dollar loans will be any less predatory. That’s why the National Consumer Law Center is urging banks to show leadership in developing affordable credit options for consumers. [More]
New System Addresses Military Members’ Complaints Of Higher Education Abuse
By 1.30.14
It’s hard to believe some higher education institutions deceptively target veterans and servicemembers, but it does happen. To better ensure veterans’ and servicemembers’ input is being heard the federal government has launched a new reporting system to streamline consumer complaint investigations. [More]
Can Postal Service Stay Alive By Cashing Checks & Selling Prepaid Debit Cards?
By 1.28.14
The once-great US Postal Service continues to sink into obscurity and financial oblivion, a destiny that will probably not be saved by all the postage stamp price increases in the world. But could the USPS keep its head above water by offering the financial services that are generally reserved for run-down strip malls? [More]
And Then There Was One: Wells Fargo, U.S. Bank Discontinue Payday Loan Products
By 1.17.14
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
By 1.16.14
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
By 1.15.14
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]
