Payday Loan Reform News – August 6


A Gallery of Deregulators
August 3, Jacobin
The Office of the Comptroller of the Currency (OCC), which grants federal charters to banks, began accepting applications on Tuesday from financial technological (or “fintech”) firms like robo-stock advisors such as Betterment or lenders like SoFi or Lending Club.

Other News

Kristen Gillibrand Has an Ambitious Plan to Take on Payday Lenders: The Post Office
August 6, Mother Jones
Sen. Kirsten Gillibrand (D-N.Y.) has introduced legislation that would allow the United States Postal Service to branch out and offer basic financial services, including savings accounts and loans, to the underbanked.

NCUA’s Proposed Payday Alternative Loans Unattractive to CUs
August 3, Credit Union Time
A new payday alternative program proposed by the NCUA is unlikely to convince many more credit unions to offer short-term loans because the loan terms are too prescriptive.

Sen. Brown critical of online lender charter plan
August 2, Financial Regulation News
Sen. Sherrod Brown (D-OH) recently expressed criticism over an administrative plan to grant national charters to online lenders.

Trump Appointees Are Pushing a Deregulation Plan That Could Dramatically Erode Consumer Protections
August 2, In These Times
CFPB acting director Mick Mulvaney has vowed to reconsider the payday rule and even unsuccessfully joined a payday lender in court to argue against his own agency’s regulation.
More Coverage:
Trump Appointees Are Pushing a Deregulation Plan That Could Dramatically Erode Consumer Protections | Salon

Consumers Support CFPB Despite Efforts to Undermine the Bureau
August 2, Inside Sources
Consumer support of the Consumer Financial Protection Bureau (CFPB), recent leadership shifts and policy changes have sought to undermine the bureau, which could be risky for consumers in the current economic landscape.

Payday lenders reaping what they have sowed
August 2, The Vindicator
Payday lenders found a way to circumvent The Fairness in Lending Act: They began making loans under the Mortgage Loan Act. As a result, they have continued to charge more than 500 percent interest and to demand repayment in one lump sum.This breach of public trust triggered an uprising of religious, grass-roots and community-based organizations demanding action by the General Assembly. Payday lenders have only themselves to blame for the strict standards that now govern their industry.

States Likely to Revive Challenge to OCC Fintech Charter
August 1, Bloomberg
The new special-purpose fintech charter unveiled July 31 by the Office of the Comptroller of the Currency was blasted by the Conference of State Banking Supervisors President John Ryan as “a regulatory train wreck in the making.”

Here’s why 1 in 3 college-age Americans consider payday loans with interest rates of 400%
August 1, CNBC
Payday loans are a particularly enticing option for younger borrowers, many of whom may not yet have assets to hold as collateral for a loan or enough of a credit history to qualify for credit cards.18 to 21 years olds, a have strongly contemplated taking out a payday loan.

Sherrod Brown assails Trump’s payday lending plan
July 31, The Columbus Dispatch
Sen. Sherrod Brown assailed a Trump administration proposal to scrap regulations aimed at protecting consumers against payday lenders, charging the GOP plan would undermine Ohio’s efforts to protect working people from these predators.

Once again, California lawmakers won’t crack down on payday lenders
July 31, CALmatters
California is one of 26 states allowing loans with annual percentage rates higher than 391 percent on loans that must be fully repaid within two weeks. Otherwise, borrowers face collection calls, overdrafting their accounts or even a court order when they default.

Raimondo Announces Protections for Working Families as 2nd Term Goals
July 31, Go Local
Governor Gina Raimondo announced Protections for Working Families as part of her second-term goals.The protections include a modern equal pay law, expanded access to paid family leave, reforms to predatory payday lending, cracking down on wage theft and expansion of the Earned Income Tax Credit.

Consumer agency hated by Trump and GOP lawmakers has the backing of Most Americans
July 31, Los Angeles Times
The Trump administration and Republican lawmakers have long viewed the Consumer Financial Protection Bureau as a rogue agency, dedicated solely to preventing decent, hard-working businesses from creating jobs and growing the economy. It turns out, though, that the CFPB enjoys strong support from at least one group. Consumers. Millions of them.

As online lending companies gain popularity the Trump administration is making it easier for them to bypass state regulations
July 31, Los Angeles Times
Federal officials said Tuesday they would make it easier for financial technology firms to operate nationwide following a Trump administration report calling for sweeping regulatory changes to advance new fintech companies and services.

US Senate must say no to payday lending
July 31, The State
South Carolina has been slow and ineffective at reigning in these predatory lenders, who prey on folks in their time of need and lead far too many to a never-ending cycle of debt. After five years of careful study, the Consumer Financial Protection Bureau finalized a rule earlier this year to minimize the damage these lenders do in our communities. But then South Carolina’s own Mick Mulvaney, longtime friend to the payday industry, became director of the bureau. He immediately moved to halt this new rule.