DNC Chair Walks Back Her Opposition To Payday Lending Reform

DCvision2006

Only three months ago, Florida Congresswoman and chair of the Democratic National Committee Debbie Wasserman-Schultz was actively lobbying her fellow lawmakers in opposition to pending reforms for the payday loan industry, finding nothing wrong with lenders who charge interest rates in the range of 300% to people in dire need of cash. Now that the actual rules have been announced, the legislator has had a sudden change of heart. [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]

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]

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]

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]

Feds Arrest Heads Of Two Massive Online Payday Loan Operations

Feds Arrest Heads Of Two Massive Online Payday Loan Operations

Back in June 2014, Consumerist showed readers what might have been the scammiest payday loan we’d ever seen. Today, federal authorities arrested the man behind the company, AMG Services — along with his lawyer and another, unrelated, payday lender — for allegedly running online payday lending operations that exploited more than 5 million consumers.  [More]

Regulators Sue Pension Advance Companies Over Deceptive Marketing Of Loans

Regulators Sue Pension Advance Companies Over Deceptive Marketing Of Loans

Five months after the Consumer Financial Protection Bureau warned that pension advance loans could be the new payday loan – leaving consumers who are already struggling to make ends meet in dire financial situations – the agency announced it had teamed up with the state of New York to shut down two companies that allegedly deceived retirees about the risks and costs associated with the loan products. [More]

Regulators File Suit Against Data Broker That Helped Payday Loan Scammer Bilk $7M From Consumers

Regulators File Suit Against Data Broker That Helped Payday Loan Scammer Bilk $7M From Consumers

From time to time, federal regulators shut down shady payday lending companies that debit consumers’ accounts or charge their credit cards without permission. But those nefarious operations have to get their information from somewhere, right? Well, today the Federal Trade Commission sent a message to all of those companies providing such personal information to scammy-mcscammersons by taking action against a data broker operation that illegal sold payday loan applicants’ financial information. [More]

(scurzuzu)

Regulators Sue To Shut Down Illegal Offshore Payday Loan Network

While most of us think of payday lenders as small-time storefront operations, there is also a complicated web of interconnected payday businesses operating outside the U.S. borders, but illegally issuing costly short-term loans to American borrowers. A newly filed lawsuit hopes to put an end to one such network. [More]

Add-ons allowed in states like Louisiana defeat the purpose of initial interest rate caps.

Most State Laws Can’t Protect Borrowers From Predatory Installment Loans, Open-End Lines Of Credit

As regulators continue to craft rules meant to crackdown on costly and harmful short-term payday lending, companies are offering alternative products like installment loans and open lines of credit to consumers. But, as it turns out, these cash infusions can be just as devastating to those in need, and few states offer sufficient protections for borrowers. [More]

Expansion Of Military Lending Act Closes Loopholes Exploited By Predatory Lenders

Expansion Of Military Lending Act Closes Loopholes Exploited By Predatory Lenders

Nearly a decade after legislation was put in place to protect U.S. military personnel and their families from predatory financial products, the Military Lending Act received a much-needed update to close loopholes often exploited by shady lenders to skirt the rules and put the financial lives of servicemembers at risk. [More]

(Brian Turner)

Payment Processor Pleads Guilty After Allowing Fake Payday Lenders To Raid Bank Accounts

If a payment processor — the intermediary between a merchant and the banks — facilitates transactions that it knows aren’t on the up-and-up, it’s not just a no-no; it’s a federal offense. Just ask the California man who pleaded guilty to wire fraud for enabling the operators of fake payday loan sites to steal money from consumers’ bank accounts. [More]

Operators Of Massive Payday Loan Scheme Banned From Industry

Operators Of Massive Payday Loan Scheme Banned From Industry

The masterminds behind a massive payday loan scheme have agreed to be banned from the consumer lending industry to settle federal regulators’ charges they bilked millions of dollars from customers by trapping them into loans that were never authorized. [More]

Pennsylvania Man Charged With Racketeering Related To Massive Payday Loan Scheme

Pennsylvania Man Charged With Racketeering Related To Massive Payday Loan Scheme

A life of stealing started with the snatching of a candy bar and transformed into an illegal multi-million dollar online payday lending scheme that allegedly defrauded thousands of people. At least that’s what federal prosecutors say led to charges against a Pennsylvania man recently. [More]

Scott Cimakosky

Abusive Lending Practices Can Lead To Negative Long-Term Consequences For Borrowers, Communities

Every year, more than 12 million Americans spend $17 billion on payday loans, despite the fact research has shown these costly lines of credit often leave borrowers worse off. Yet abusive lending practices are not relegated to borrowers in need of a couple hundred dollars to stay afloat until their next paycheck; there are mortgages, car loans, and other traditional lines of credit that can leave the borrower in a bind. Even if you never find yourself on the wrong end of a predatory loan, these products can still be a drain on your entire community. [More]