Payday Loan Reform News – November 5



Editorial: Taking step back on payday lending unwarranted
October 30, Herald-Dispatch
The Consumer Financial Protection Bureau announced it will revisit a crucial part of its year-old payday-lending industry regulations. This move that will likely make it more difficult for the bureau to protect consumers from potential abuses, if changed.
More Coverage:
Consumer Financial Protection Bureau to revisit payday-loan rules | News-Gazette


Top Stories


High rate of payday loans continues
November 4, Daily Journal
A recent survey by CNBC Make It/Morning Consult found that millennials may be taking out or considering payday loans more than ever, but poverty may be a factor closer to home for Mississippi residents. With the ability to get a loan at one of the 23,000 payday lenders across the U.S. online, or even at certain banks, consumers may find it easier than ever to get into debt from high-interest rates on short-term loans. There are over 1,000 payday lender locations across Mississippi.


CFPB policy on military lending supervision ‘unacceptable,’ says consumer group
November 4,
The Consumer Financial Protection Bureau has the statutory authority to ensure compliance with the Military Lending Act (MLA), according to an analysis by the Consumer Federation of America (CFA).
More Coverage:
Consumer group report disputes CFPB policy on military lending exams | American Banker


LETTER: End predatory payday lending
November 1, The Aurora Sentinel
State Senator Nancy Todd asks Coloradans to vote for Prop 111 and protect people from predatory payday lenders.
More Coverage:
Aspen Times Editorial: Breaking down the state ballot questions | The Aspen Times


US Bank stop stealing from our family and friends
November 1, Seeley Swan Pathfinder
In Montana, we won, through a citizen vote, an interest rate cap at 36 percent for payday loans in 2010. Since then, Montanans save an estimated $37 million annually. Banks should not get a free pass to charge Montanans high interest rates on loans when we won protections from similar payday loan products.
More Coverage:


Payday loan customers due a refund
October 31, Fox5
The Federal Trade Commission is sending out checks, about $500 million dollars available to 1.1 million people, to consumers who took out loans from these AMG-related companies: 500FastCash, Advantage Cash Services, Ameriloan, OneClickCash, Star Cash Processing, UnitedCashLoans, and USFastCash. A jury in 2017 convicted  Scott Tucker, the former owner of AMG, of multiple crimes related to what it calls a “lending scheme.” Tucker was sentenced to 16 years in prison.


Out-of-state special interest money flows into a race for mayor in Arkansas
October 30, Arkansas Times
The D.C.-based Republican State Leadership Committee has also poured $41,587 into Jim Webb’s campaign for mayor of Bentonville, a nonpartisan office. The main funders of the RSLC include the U.S. Chamber of Commerce, Big Tobacco, drug companies, payday lenders, Koch Industries and others.


State Regulators Sue To Block FinTech Charters
October 30, PYMTNS
In the latest salvo over awarding national bank charters to FinTechs spanning tech upstarts across online lending and various payments functions, the Conference of State Bank Supervisors (CSBS) filed suit late last week against the Office of the Comptroller of the Currency (OCC) over the latter’s plan to award those charters.


Letter to the Editor: Questions about Pa. pension investments
October 30, Delaware County Daily Times
A letter to the editor from a Temple University student asking the Pennsylvania state pension fund to stop investing in payday lending.


Attorney General Donovan urges financial protection for military service members
October 30, VT Digger
Attorney General T.J. Donovan today joined a coalition of 32 attorneys general calling on the Consumer Financial Protection Bureau (CFPB) and Acting Director Mick Mulvaney to continue protecting military servicemembers against predatory lenders under the Military Lending Act (MLA). The attorneys general urge the CFPB to reconsider its reported decision to stop examining lenders to ensure they are complying with the MLA.
More Coverage:
AGs Join Call For CFPB To Keep Probing Military Lenders | Law360


Wealthy Seniors Don’t Need Discounts, but All Low-Income People Do
October 29,
It’s time to retire the senior discount and redirect the savings to low-income people of all ages. The wealthiest seniors don’t need the cheap seats at the movie house.


Everything You Need to Know About Payday Loans
October 29, WTOP
If you’re a little short on cash and need to meet an important expense, a payday loan may seem like a viable option. Be cautious, though. The fees and interest typical of payday loans make them expensive in the best of circumstances. If you’re unable to repay the debt quickly, the costs can escalate and deepen financial troubles.


Mulvaney appointee threatens work on fair lending
October 28, The Post and Courier
Since his installation, acting director Mick Mulvaney has sabotaged the CFPB’s Fair Lending Office’s ability to enforce these laws, leaving such work in the hands of Eric Blankenstein, a man recently discovered to have written racist and sexist blog and message board posts.
More coverage:
Federal employees union wants CFPB official gone | Federal News Network


Consumer protection agency cites Cookeville-based business
October 28, Herald-Citizen
The Consumer Financial Protection Bureau announced a settlement with Cash Express LLC, a Tennessee based payday lender, which requires the company to to pay approximately $32,000 in restitution to consumers, and pay a $200,000 civil money penalty.
More Coverage:
CFPB Chief Mick Mulvaney Undercuts Penalty Against Payday Lender | Legal Reader