Highlights
Regulations Targeting Payday Lenders are Necessary: Regulations Can Do an Awful Lot of Good
October 11, Tulsa World
Federal regulators rolled out a long-awaited set of new rules for payday lenders last week, including a measure designed to prevent predatory companies from trapping poor people in debt they have no hope of ever repaying.
Proposed Federal Rules Would Put Another Check on Predatory Lenders
October 9, The Virginian Pilot
I come today to praise Richard Cordray and his campaign to assist desperate people in their battles against “legal” loan sharks. Whether Congress will thwart his effort is another story.
Editorial: Finally, a Crackdown on Predatory Payday Lenders
October 9, LA Times
The Consumer Financial Protection Bureau’s new rules for payday loans and car title loans have drawn the predictable cries of outrage from lenders, particularly small storefront operators who say the restrictions will put them out of business.
Top Stories
Feds Cracking Down on Payday Loans
October 12, WISH-TV
Interviews with Mike Calhoun and Rep. Terry Sewell. TV spot aired in 13 states.
Federal Regulators Aim to Curb Payday Lending “Debt Traps”
October 10, Next City
The Consumer Financial Protection Bureau (CFPB) last week issued its long-anticipated final rule on payday loans, restricting lenders’ ability to profit from high-interest, short-term loans and earning the agency high praise from community lenders and consumer advocates.
Help the CFPB Stop Predatory Loans From Ruining Lives
October 10, OurFuture.org
Can one emergency expense ruin your life? It can if you get caught up in the traps set millions of times each year for ordinary working people by payday loan sharks.
New Rule to Rein in Lenders
October 10, The Brownsville Herald
Texas fair-lending advocates are applauding the Consumer Financial Protection Bureau for issuing the first rule meant to rein in abusive practices by the payday and auto-title lending industry that often put borrowers in a debt trap.
Baptists Praise Rule to Curb Payday Loan ‘Debt Trap’
October 9, Ethics Daily
Baptist leaders praised the final version of a rule, released by the Consumer Financial Protection Bureau (CFPB) on Oct. 5, that seeks to end "debt traps" within the payday loan industry.
Baptist Advocates Applaud Rule to Rein in Abusive Lending
October 7, Baptist Standard
Baptist public policy advocates affirmed the Consumer Financial Protection Bureau for issuing a payday and auto-title loan rule designed to rein in abusive lending practices.
Editorial: Rule Could Curtail Payday Loans, if Congress Lets it
October 5, Tuscaloosa News
Alabama Arise, a group dedicated to helping the state’s impoverished people, has for years spearheaded the effort to change state laws that allow so-called “payday lenders” to charge outrageous interest on what are supposed to be short-term loans.
Other Press
Federal Regulator Clamps Down on Payday Lending Industry
October 13, Chicago Tribune
A federal regulator announced new restrictions Thursday on the payday lending industry, a move that is likely to face resistance in Congress. The Consumer Financial Protection Bureau's finalized rules largely reflect what the agency proposed last year. They are the first nationwide regulation of the industry, which had largely been left to the states.
After Taking Cash from Payday Lenders, will Rep. Poliquin Vote to Strip Consumer Protections?
October 11, Maine Beacon
Last week the Consumer Financial Protection Bureau (CFPB) released their long-awaited rules to reign in the worst practices of the short-term payday lending industry. The rules, seen by many consumer advocates as a promising first step in regulating the notoriously predatory industry, we’re met with hostility by industry lobbyists and a pledge by Republican lawmakers to undo the protections by congressional vote.
Debtors’ Cycle: Consumer Protections are Essential in High-Interest Payday-Loan Industry
October 10, Journal Gazette
If a family falls a little behind, and needs a little cash, a so-called “payday lender” may be more than happy to help out. In Indiana, a down-on-his-or-her-luck applicant can get a two-week loan for up to $605. But the interest rate can be a backbreaking 20 percent for those two weeks – an annual percentage rate as high as 391 percent.
Teacher: $200 Payday Loan Pushed Me to Bring of Bankruptcy
October 10, The Inquirer Daily News
With bills piling up, her credit shot, and a choice looming each morning of whether to spend her last dollars on food or on gas to get to work, high school science teacher Dawn Schmitt went online in search of financial hope.
Diane Standaert of the Center For Responsible Lending Talks About New Rules For Payday Lending From The Consumer Financial Protection Board
October 10, Scott Sands Shows, WSPD Talk Radio, Ohio
Trump’s Wall Street Watchdog Undercuts a Key Consumer Protection
October 10, New Republic
In what will likely be Richard Cordray’s final major act as director of the Consumer Financial Protection Bureau, the agency last week issued the first federal rule on payday lending, an umbrella term for short-term, high-interest loans to cash-strapped Americans.
Payday Lenders Curtailed, For Now
October 9, Public News Service
While consumer rights groups are celebrating last week's decision by the Consumer Financial Protection Bureau to stop payday debt traps, they say there's still more work to be done. The new rules require payday lenders to start verifying a borrower's ability to repay the loan before rolling it over into a new loan.
New Payday Loan Rules: What You Need to Know
October 9, WTOL
The Consumer Financial Protection Bureau issued new rules on payday loans this week. Consumer advocates say the rules will help low-income people and families trapped in endless cycles of debt.
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Federal Regulator Clamps Down on Payday Lending Industry
October 9, Legal News
Payday and auto title lenders will have to adhere to stricter rules that could significantly curtail their business under rules finalized last Thursday by a federal regulator. But the first nationwide regulation of the industry is still likely to face resistance from Congress.
Reposts: WHSV.com, WDRB.com, ABC 13,The Ledger, NewsCycle, Cloud.com, HighBeam.com, NAWAOnline.com, ArkansasONline.com, Journal Gazette, Rutland Herald, Times Argus, WDEF.com, CBS 58, CBS News, WDRB.com, LegalNews.com, Fox Business, St. LouisPost-Dispatch, Oakland County Legal News, San Antonio Express News, The Columbus Dispatch, Santa Fe New Mexican
New CFPB Payday Lending Rule Will Reduce Abuses; State Protections Remain Crucial 36% Usury Cap Would Keep Loan Sharks at Bay
October 9, Northwest Facts
A new rule released today by the Consumer Financial Protection Bureau (CFPB) will reduce the harms of short-term payday lending to Washington families, but state protections remain crucial to prevent predatory lenders from exploiting loopholes in the rule
Payday Loans are Still Wickedly Dangerous, Despite New Rules
October 9, The Street
The payday loan racket may have just gotten more difficult for lenders, but it's still treacherous for consumers. Last week the Consumer Financial Protection Bureau announced a new series of protections for borrowers who use these services.
Title Loan Changes on the Way
October 9, ABC 15 Arizona
Getting quick cash could get a little tougher under new rules announced by the Consumer Financial Protection Bureau. The agency says it is looking to protect consumers from taking out high interest APR pay day and title loans that they can’t afford to pay back.
3 Ways the New Rules Curtailing Payday Loans will help Consumers
October 9, WSB 2
There are new regulations coming that aim to help borrowers from becoming entrapped by payday loans. The rules, brought about by the Consumers Financial Protection Bureau, provide long-needed protections for people who fall into desperation and risk excruciatingly high interest rates to borrow money so that they can pay their bills.
More Coverage: KRIO 7 News, WPXI News, Journal News, Fox 13 Memphis , WSBRadio.com, Action News Jax, Dayton Daily News, WSBTV, Palm Beach Post, WHIO, Statesman, Fox 23, AJC.com, WGAU Radio,
Texarkana Gazette Editorial: Payday Loans: Federal regulators, industry should work together before new rules take effect
October 9, Texarkana
It wasn't all that long ago that nobody knew what a payday loan was. Sure, there were finance companies and small lenders around. But they made installment loans to be paid back over several months, maybe a couple of years. Your payment included interest and principle. The interest rate was high—as much as 30 or 40 or even 60 percent. But if you needed money they were there.
More Coverage: The Tribune, Washington Times, Centre Daily, Kentucky.com, Macon.com, The Olympian,
Right Rule on Payday Loans
October 8, The Time Tribune
Like any other service, payday lending exists because there is a market for it. Low-income workers often take short-term small payday loans, typically about $500, to get to their next paycheck.
Consumer Protection Bureau Cracks Down on Payday Lenders
October 8, Crescent-News
WASHINGTON — The nation’s top consumer financial watchdog on Thursday issued tough nationwide regulations on payday loans and other short-term loans, aiming to prevent lenders from taking advantage of cash-strapped Americans.
More Coverage:
Cali Attorney General Supports Crackdown on ‘Abusive Payday Loan Vendors’
October 8, Patch
California Attorney General Xavier Becerra pledged his support this week for new federal regulations concerning payday loans and the businesses that offer them, saying the Consumer Financial Protection Bureau’s new Payday Lending Rule will prevent “the worst harms associated with short-term payday lending.”
Consumer Financial Protection Bureau Cracks Down on Payday Lenders
October 7, LA Times
The nation’s top consumer financial watchdog Thursday issued tough nationwide regulations on payday loans and other short-term loans, aiming to prevent lenders from taking advantage of cash-strapped Americans.
Feds Issue New Rule to Curb Payday Lending Abuses
October 6, Public News Service
Consumer advocates are praising a new rule issued on Thursday by the Consumer Financial Protection Bureau. It requires payday lenders to start requires payday lenders to start verifying a borrower's ability to repay before rolling it over into a new loan.
New Payday Lending Rules Will Require Proof of Ability to Repay
October 6, KQED
Payday and car-title lenders must issue loans only to consumers who demonstrate they can afford them, much like banks and other financial institutions do, according to a nationwide rule issued this week by the Consumer Financial Protection Bureau (CFPB).
More Coverage:
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Law 360, CFPB Applies 'Ability-To-Repay' Standard To Payday Loans
Advocates Applaud The Consumer Financial Protection Bureau for Their Release of Rules that Disrupt Payday Lending Business Model
October 6, Seattle Medium
Taking a step toward dismantling debt traps, the Consumer Financial Protection Bureau (CFPB) recently finalized rules to protect consumers who take payday loans, auto title loans, deposit advance products, and longer-term loans with balloon payments. These loans have interest rates upward of 300% and create cycles of poverty where consumers must choose between defaulting on repayment, re-borrowing, or falling on economic hardships and struggling to pay for food or medical care.
CFPB to Stop Payday Debt Traps
October 6, Kansas City Info Zine
The Consumer Financial Protection Bureau (CFPB) finalized a rule that is aimed at stopping payday debt traps by requiring lenders to determine upfront whether people can afford to repay their loans.
CFPB Payday Loan Ruling Creates New Way to Protect Consumers
October 6, Indiana Public Media
A new ruling on payday loans by the Consumer Financial Protection Bureau could affect Hoosiers. The CFPD decision lays out two avenues to protect consumers. One is to assess the borrower’s ability to repay the loan prior to issuing the money.
Payday Lenders to Face Stiffer Rules
October 6, Business North
The Consumer Financial Protection Bureau on Thursday finalized wide-ranging rules targeting the billions of dollars in fees collected by payday lenders offering high-cost, short-term loans.
New Payday Rule Protects Borrowers from Sinking into Debt
October 6, The Village Sun Times
The rule requires lenders to use credit reporting systems registered by the bureau to report and obtain information on certain loans covered by the proposal. Friedline can discuss the assessment, financial opportunity, equality, payday lending, financial equality, the regulations, the Consumer Financial Protection Bureau and related topics.
Payday Lenders Face New Federal Rules
October 6, WKOW
New federal rules on payday lenders could help some of Wisconsin’s most vulnerable people. The average payday or car title loan is just $300, but it also comes with an annual interest rate of 515 percent.
Payday Lenders in Alabama Face Major Change
October 6, WFSA 12
Payday loans such as Great American on the Southern Boulevard in Montgomery must change how they do business with borrowers. Shay Farley is an attorney for the Southern Poverty Law Center. The SPLC says it’s been warning state lawmakers and federal officials something had to change in the payday loan industry.
Where Consumers with Little or no Credit can get a Loan
October 6, Consumer Reports
About 45 million people living in the United States are unable to qualify for credit from traditional lending sources. This is especially problematic for America’s black and Latino population, according to the most recent government statistics. Having no credit history makes it nearly impossible for them to secure a mortgage, finance a car, own a credit card, or refinance student loans.
How Regulators Plan to Curb 400 percent Interest Payday Loans
October 5, Washington Post
The Consumer Financial Protection Bureau on Thursday finalized wide-ranging rules targeting the billions of dollars in fees collected by payday lenders offering high-cost, short-term loans.
Reposts: Herald and News, DH Business Ledger, Daily Herald
A New Rule Protects the Poor From a Nightmarish Cycle of Debt and High Fees
October 5, Time
For millions of financially strapped Americans, the chasm between a bill due now and a paycheck coming soon is simply too wide to bridge.
Reposts: MSN
Consumer Bureau Releases Short Term Lending Rule Meant to Curb Debt Traps
October 5, The Hill
The Consumer Financial Protection Bureau released a long-anticipated rule Thursday that's meant to protect short-term, high-interest loan customers from being trapped with debt.
New Rules Make it Harder for Payday Lenders to Put Borrowers in ‘Debt Trap’
October 5, Buzzfeed
The Consumer Financial Protection Bureau has finalized regulations forcing payday lenders to determine before granting a loan if a borrower could actually pay it back while still meeting their living expenses both during the loan's term and for a month after. The rules will take effect in about two years.
Payday Loan Business Facing Tougher Rules
October 5, Nashville Public Radio
New federal rules on payday lending were finalized on Wednesday. The new rules, first proposed by the Consumer Financial Protection Bureau last year, will go into effect 21 months after they are published in the federal register.
More Coverage: WVTF Radio, NC Public Radio WUNC, KCBX Central Coast Public Radio, WUWM Public Radio, Marketplace, Northern Public Radio, WCAl,
Consumer Protection Crackdown on Predatory Lending a Welcome Protections, KU Financial Researcher Says
October 5, The University of Kansas
The Consumer Financial Protection Bureau announced Thursday new regulations to prevent payday loans and auto title lenders from taking advantage of low-income consumers. The new rules would require lenders to assess a consumer’s ability to repay the loan. They also give banks and credit unions an opportunity to offer lower-cost installment loans to consumers; however, states and federal regulators need to offer clear guidance so that the loans are offered safely and affordably, according to a University of Kansas professor.
I-Team: NY Pension Profit from Payday Loans
October 5, NBC New York
Short-term, high-interest debt known as payday loans are illegal inside New York borders. But that hasn’t stopped state and city retirement funds from investing more than $40 million in payday lenders that operate in other states.