Payday Loan Reform News – October 20


A new CFPB payday rule wins an economic battle, but not a war: Black America must still fight predatory lenders
October 18, 2017, the Chicago Crusader

In recent days, general market news has reported on the Consumer Financial Protection Bureau’s (CFPB) new rule to rein in harmful practices by payday lenders. The announcement came after years of research by the CFPB, and a strong push by a broad-based coalition of leaders and activists who wanted rules to stop payday lending debt trap.

The Feds have used new rules restricting Payday Lenders. Will they help or harm consumers?
October 17, WKYC

Ohio has the unique distinction of having the highest Payday loan rates in the nation – 591%. And the percentage of residents who've used one is almost twice the national average. The Feds just finalized a rule aimed at keeping people out of these debt traps, but some lawmakers are fighting to keep things as is.


Editorial: Abusive short-term lenders deserve the tighter rules they're getting
October 17, St. Louis Post-Dispatch

Trapping consumers in an unending cycle of debt is hardly an accidental byproduct of the payday lending industry. In many ways it’s the intent. Burying borrowers beneath mountains of recurring debt is one of the main ways the $3.6 billion industry stays afloat.

Editorial: Why payday loan sharks should be arrested and tried
October 16, Philadelphia Inquirer

It is a relief to see federal prosecutors and regulators finally cracking down on payday lenders. While the moves are past due, it is unclear if the prosecutions will be enough to deter a sleazy industry or if tough new restrictions will last.


Top Stories


CFPB Rules to Crackdown on Payday Lending High-Fived
October 20, Euroweb

After five years of field hearings, town hall meetings, multiple research reports, and over one million comments, the Consumer Financial Protection Bureau ( CFPB ) announced on October 5 a new rule to rein in predatory payday and car-title loans.
Reposts: Los Angeles Sentinel, St. Louis American


Rule Aims to Protect Mass. Residents From Payday Loan Abuses
October 20, Spare Change News

Consumer advocates are praising a new rule issued on Thursday by the Consumer Financial Protection Bureau that requires payday lenders to start verifying a borrower’s ability to repay the loan before rolling it over into a new loan.


Consumer Guy: Debt is a Vampire
October 19, Coeur d’Alene/Post Falls Press

Everyone knows that being in debt can suck the happiness out of your life. Debt will destroy your attitude, your relationships, and your personality.


Consumer protection bureau finalizes rule to stop payday debt traps
October 17, Lebanon Democrat

Tennessee Citizen Action welcomed the action and called on Tennessee lawmakers to pass an interest rate cap of 36 percent or lower for both short-term and long-term payday loans, a rate that has effectively protected residents of many other states from the payday debt trap.


End predatory payday loans
October 17, Chronicle-Tribune

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.


Letter: Put tighter restrictions on pay-day loans
October 16, Journal-Courier

As executive director of HomesteadCS, a HUD-certified housing counseling agency and community loan center that serves 10 counties across West Central Indiana, I have witnessed first-hand the egregious effects that predatory lending has on low- and moderate-income families.


Operator Of Payday Lending Venture Found Guilty Of Racketeering, Other Charges
October 16, Consumerist

Nearly two years after federal authorities arrested the man behind the company responsible for one of the scammiest payday loans Consumerist has ever seen, the man and his lawyer were convicted of racketeering related to running a $3.6 million online payday lending operation that exploited more than 4.5 million people.


Coalition Fights Push to Expand Payday Lending in Michigan
October 16, Public News Service

Thousands of Michiganders have become trapped in a cycle of debt after resorting to high interest, short-term loans to make ends meet, and advocates for the financially vulnerable say a new package of bills would make matters much worse.


Federal government set new rule for Texas payday, auto-title lenders
October 13, KFOX

The federal government is imposing tougher standards on payday lenders in the Lone Star State.


Help the Consumer Financial Protection Bureau Stop Predatory Loans From Ruining Lives
October 13, Truthout

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.


Here’s What New Federal Rules Mean For Payday Lending in Texas
October 13, Texas Standard

They dot strip malls throughout the state: storefronts offering up cash quick, no credit check required. Payday lending is big business, estimated to be a $5.8 billion industry just in Texas alone.