Payday Reform News: October 1-7

Top Stories

October 7 Philadelphia Tribune, 1st Presbyterian panel discussion focuses on payday lending
By Samaria Bailey
Reports on September 29 event co-sponsored by Pennsylvania PIRG and One Less Foundation, a local organization.

October 7 The Intercept, Google said it would ban all payday loan ads, it didn’t
By David Dyen
Reports on the payday industry’s use of “lead generators” that sell consumers’ personal information to obtain a payday loan.

October 6 Tallahassee Democrat, Payday loans plague Florida’s poor
Guest column by Brad Ashwell
Asserts that CFPB regulation would benefit state’s poor consumers.

October 6 Newsroom America, Court imposes record $1.3 billion judgment against AMG payday lending scheme
Staff report
Quotes FTC Chair Edith Ramirez on the agency’s opposition to deceptive payday lending.

October 6 Chicago Tribune, Elgin payday lender agrees to forgive $3.5 million in loans
By Robert Channick
Illinois AG Lisa Madigan announced settlement with All Credit Lenders that will stop collections and waive balances for more than 5,000 consumers whose loans contained hidden interest rates ranging from 350 to 500 percent

October 6 Chicago Sun-Times, Madigan reaches settlement with payday lender for illegal fees
By Daniel Brown
Reports on settlement with IL AG Lisa Madigan and All Credit Lenders that orders $3.5 million fine and immediate cessation of revolving credit lines that disclose actually interest rates charged.

October 6 Sidney Daily News, Agencies push for loan reform
Staff Report
Cites CRL payday lending research

October 5 Dallas Business Journal, Dallas Fed: Payday lenders skirting state laws
By Jon Prior
Reports on a new paper published by the Dallas Fed that found payday lenders are registering as credit repair businesses in Texas in order to skirt state laws limiting how much they can charge cash-strapped borrowers,

October 5 American Banker, CFPB deluged with letters on payday lending
By Ian McKendry
Reports that as of Wednesday, October 5, CFPB had received over 500,000 comments and was expecting more than a million by the October 7 deadline.
More Coverage:
Washington Examiner | Morning Consult

October 3 Yahoo Finance (AP report), Pro race car driver Scott Tucker, others ordered to pay $1.2B
U.S. District Court of Nevada finds Tucker and associates mislead consumers on loan terms; faces criminal charges in New York as well.
Additional coverage:
CNBC | Salon | Seattle PI | KTVI-TV | Monterey Herald | ABC News | Atlanta Journal-Constitution

October 5 Arkansas Democrat-Gazette, The endless game: Money will go where it wants to go
Criticizes Cheney Pruett, CEO of CashMax, and the company’s high-cost loans that are designed to keep people in debt.

October 5 St. Louis American, It’s shameful to lobby for payday lenders
Guest column by Cara Spencer
Focuses on Lou Hamilton, a payday industry lobbyist and the predatory nature of payday loans.

October 4 Fresno Bee, Regulators need to hear from payday loan users
Guest column co-authored by Liana Molina and Matthew Ari Jendian
Calls for CFPB to include an ability-to-repay in its final rule; encourages public comments.

October 4 Legal Newsline (Los Angeles), CFPB victory over CashCall a win for consumers, expert says
By Chad Birt
Quotes Diane Standaert.
Additional coverage:

October 4 Black Press USA (NNPA newswire), CFPB sues, fines TMX Finance $9M over misleading loans
By Charlene Crowell, NNPA column
Quotes Delvin Davis on CFPB’s enforcement actions against auto-title lenders
Additional coverage:
Tri-State Defender | Finance News

October 4 Public News Service, Ohio groups speak out against payday lending loopholes
By Mary Kuhlman
Cites CRL payday lending research

October 3 Argus Leader, Cap payday loan rates
LTE by Lanny V. Stricherz
Advises voters to voters to vote “no” on Amendment U and “yes” on IM 21.

October 3 Brownsville Herald, Payday loan rule panned
By Steve Clark
Reports on Texas concerns with CFPB’s proposed rule, particularly as the state has credit service organizations that exploit laws.

October 1 Star-Ledger Editorial, Scott Garrett hits the wrong target in Wells Fargo scandal
Questions Rep. Scott Garrett’s stance on payday regulation

September 30 Argus Leader, Amendment U will protect lender rates
LTE by Tamara U. Baker
Claims the amendment is intended to trick voters and will aid the payday industry.

Partner Blogs and Releases

Center for American Progress (news release), How Predatory Debt Traps Harm Economically Insecure Families

Stop the Debt Trap: Advocates Share Voices of Hundreds of Thousands Calling for End to Predatory Lending

Stop the Debt Trap: More than 400,000 Comments Call on CFPB to Crack Down on Abusive Lending

Our Future: The Lie at the Heart of the Payday Predator’s Playbook