Payday Reform News: October 8-15

Highlight

October 10, Chicago Tribune: There’s High Interest in Cracking Down on Payday Loans
This article gives a general overview of the fight against payday lending the in the last 20 years, and the difficulties that must be overcome in order to create a feasible solution to this issue. This article quotes Mike Calhoun.
More Coverage:
Wall Street Journal

Partner Blogs and Press Releases

New Economy Project: Paydayfreelandia Coalition Press Release

Talk Poverty: #StopTheDebtTrap

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

Top Stories

October 13, Portland Business Journal: Oregon Lawmakers Target Payday Lenders
Five of Oregon’s seven congressional delegation members signed a letter that was sent to the CFPB regarding a stronger payday rule. The lawmakers state their views on the importance of putting an end to predatory lending.

October 13, Christian Science Monitor: Unbanked Hispanics Pay Steep Fees for Alternative Financial Services
This article tells the story of a Hispanic payday borrower who found herself in a debt trap, and discusses the increased vulnerability of Hispanics to debt traps when they don’t’ have bank accounts.

October 12, Tampa Bay Times: Thursday’s Letters: Put End to Predatory Lending
This opinion piece stresses the need for a stronger payday lending rule, and commends the CFPB for their efforts to put an end to predatory lending. The author also points out the need for a “loophole-proof” provision.

October 12, CityLimits.org: Local Pols, Advocates Plead With Feds to Strengthen Payday Lending Rules
A coalition of representatives from New York submitted a letter to the CFPB advocating for a stronger payday rule to protect other states from predatory lending, as well as protect New York’s predatory lenders from returning.

October 11, Frost Illustrated: We Must Close Payday Loan Debt Trap Once and For All
This editorial piece describes poverty in the United States, and how payday lending perpetuates the cycle of poverty for many residents. The author advocates for greater strides toward putting a halt to predatory lending.

October 12, Star-Telegram: Hurst, Euless, Bedford Join Cities that Restrict Payday Lenders
Three cities in Texas are joining forces with other major cities – Arlington, Dallas and Denton – to adopt ordinances that would control predatory lending through credit access provisions.

October 11, Miami Herald: Rock Band Gooding Gets Miami-area Kids Excited About Managing Their Finances
Kansas- and California-based band Gooding has partnered with Funding the Future to talk to kids about controlling their finances at their shows while on tour. They are specifically warning kids about the dangers of payday loans.

October 11, Voice & Viewpoint: CBC Members Join the Call for Payday Lending Reform
This article provides a summary of the total amount of signers and supporters of letters to the CFPB to put an end to predatory lending and the loopholes that enable it. This included 43 House members of the Congressional Black Caucus.
More Coverage:
EurWeb

October 11, August Free Press: Kaine backs proposed CFPB effort to curb predatory lending practices
Senator Tim Kaine sent a comment letter calling for a strong CFPB rule on payday lending.

October 10, Jacksonville Free Press: Illegal Financial Practices Lead to CFPB Fines and Lawsuits Against Auto-Title Lenders
This article discusses the various times which the CFPB sued and fined companies for illegal financial practices, and suggests that the CFPB close these loopholes in their renewed provision.

October 10, KOMO News: New Rules Protect Military Families from Abusive Interest Rates
Last week, the Military Lending Act took effect, which will protect service members from predatory lending practices. However, it does not include protection against credit cards.

October 10, The Louisiana Weekly: Congressional Black Caucus Member Join House Colleagues in Call for Strong Payday Rule
This article announces that 104 Members of Congress from 32 states, as well as D.C. and the Virgin Islands, have come together to ask for an end to loopholes and predatory lending. Additionally, 31 of the 43 Congressional Black Caucus members joined this effort.

October 10, NBC 26: In Record Ruling, Payday Lender Scott Tucker Fined $1.27 billion for Deceptive Practices
Racecar driver Scott Tucker must pay up $1.27 billion for deceiving payday borrowers.

October 9, Argus Leader: Payday Loans Scams, Phony Testimonials Phone Sale Cons
Racecar driver Scott Tucker owes $1.2 billion for deceiving payday loan clients.

October 9, Argus Leader: Letter: Upcoming Ballot Issues Protect South Dakotans
This post explains the difference between Amendment U and Initiated Measure 21 on the South Dakota ballot in November, and encourages people to vote ‘yes’ on IM 21 to protect citizens from predatory lending.

October 10, OzarksFirst.com: Rock Band Brings Message about Money to Missouri Kids
The band Gooding is currently on tour and plan to speak out about financial literacy and responsibility to prevent kids from getting caught in debt traps, namely through payday lending.

Madison County Courier: Schneiderman Leads Coalition of Attorneys General to Urge CFPB to Adopt Consumer Protections
Attorney General Eric T. Schneiderman previously led the fight against payday lending in New York, where it is now illegal, and is now leading a group of attorneys general in the national fight.
More Coverage:
Lexology

October 9, The Topeka-Capital Journal: Punished Payday Loan Executives Gave Big to the Congressmen with Oversight of Them
James Carnes and Scott Tucker are two payday lender executives who are being ordered to pay $1.2 billion to consumers who they overcharged on small loans. Carnes also owed $38.2 million in restitution for lying about the real cost of payday loans to customers at a different store.

October 8, MSN Money: The Fight Over New Payday Lending Rules Gets Nasty
This article summarizes the payday lending industry, the CFPB’s proposal to regulate it, and points out several leaders who have spoken out against the issue.