Payday News Stories, Week of November 20, 2015

November 18
Portsmouth Daily Times
Brown comes out against predatory loans
Ohio Senator Sherrod Brown comes out against predatory payday and car title lenders.

For more coverage:

  • November 18 | | With more payday lenders than McDonald’s, a crackdown is needed now, U.S. Sen. Sherrod Brown says
  • November 18
    The Dallas Weekly
    Ohioans Lose over $500 million to Payday and Car Title Loan Fees
    A recent report by the Center for Responsible Lending found that Ohioans pay $502 million every year in fees on payday and auto-title loans.

    For more coverage:

  • November 19 | Charleston Chronicle | Ohioans Lose over $500 Million to Payday and Car Title Loan Fees
  • November 18
    American Banker Online
    CFPB Sues Online Payday Lender for Overcharging Borrowers
    The CFPB has sued the Delaware-based online payday lender Integrity Advance for allegedly failing to disclose charges that would continue to accumulate once customers defaulted on loans, as well as for withdrawing funds from customers’ accounts without their consent.

    For more coverage:

  • November 19 | Philadelphia Business Journal | CFPB charges Delaware-based online lender with deceiving consumers about loan costs
  • November 11
    Payday Loans Predatory
    This letter to the editor explains the exploitative and predatory nature of payday lending and calls upon the CFPB to implement a strong rule regulating the industry.

    November 13
    Huffington Post
    For America’s Unbanked: Re-establishing the Postal Savings Bank
    Political activist and former presidential candidate Ralph Nader advocates for the U.S. Postal Service to provide financial services to unbanked consumers.

    November 14
    Bloomberg News Online
    Covenant College talk raises warnings about payday lending [Chattanooga Times Free Press, Tenn.]
    A panel on the predatory nature of payday lending took place at Covenant College on November 16. Panelists included Washington Post columnist Michael Gerson; Katie Thompson, of the Center for Public Justice; Stephen Reeves, of the Atlanta-based Cooperative Baptist Fellowship; and Mark Bowers, from the Chalmers Center.

    November 14
    Springfield News-Leader Online
    Profiting from poverty victimizes the poor
    The articles argues that payday lending and other predatory financial practices perpetuate poverty, and describes the consequences of such impacts.

    November 15
    Salt Lake Tribune Online
    Bloomberg View: Use the U.S. Postal Service to help the unbanked
    The article offers perspective on the possibility for the U.S. Postal Service to offer financial services to underbanked and unbanked consumers.

    November 15
    Postal banking would defeat predatory lending for good | Opinion
    The articles describes how postal banking, by offering small loans to consumers in need, would serve as a safer alternative to accessing short term loans than going to a payday lender.

    November 16
    American Bankers Association Banking Journal
    FDIC Clarifies Scope of Payday Lending Rules
    The FDIC clarified that its 2005 Payday Lending Guidance refers to consumer protection, and does not apply to banks that offer non-bank payday lenders financial products or services.

    For more coverage:

  • November 16 | Federal Deposit Insurance Corporation | FDIC Clarifying its Approach to Banks Offering Products and Services, such as Deposit Accounts and Extensions of Credit, to Non-Bank Payday Lenders
  • November 16
    Milwaukee Journal Sentinel Online
    Assembly expected to pass bill ending campaign donors disclosing employers
    Assembly Republicans are attempting to pass a bill that would end requirements for campaign donors to reveal their employers. This would include employees in the payday lending industry, who have donated thousands of dollars in campaign contributions to members of Congress.

    November 16
    WFAA-TV Online
    Complaint targets lawmakers who support payday lenders
    U.S. Rep. Jeb Hensarling (R-Texas) and U.S. Rep. Pete Sessions (R-Texas) are facing ethics complaints by the Campaign for Accountability, which has called for the Office of Congressional Ethics to investigate links between campaign contributions they received and their support for legislation that would ease regulations on the payday lending industry.

    November 16
    WQAD-TV Online
    What you need to know before you even think about taking a payday loan
    The article warns consumers about taking out payday loans, describing the high costs of such financial services.

    November 17
    The Wall Street Journal
    Payday Lending Rules Apply to Litigation Funding, Colorado Court Rules
    The Colorado Supreme Court ruled that payday lending laws apply to businesses offering funding through cash advances to plaintiffs involved in personal injury litigation processes.

    November 17
    Washington Post
    Fairfax to control increasing presence of outfits offering high-interest loans
    Officials in Fairfax County, Virginia recently approved zoning restrictions for payday and title loan businesses, in an effort to minimize the impacts of high interest loans on consumers in the county.

    For more coverage:

  • November 18 | WAMU-FM Online | Fairfax County Leaders Crack Down On Car-Title Lenders
  • November 17
    St. Louis Post-Dispatch
    Missourians deserve an end to payday lending
    The article calls for an end to payday lending practices in Missouri, arguing that they perpetuate poverty in the state.

    November 17
    Waco Tribune Online
    Group calls for Waco payday loan regulations
    Residents of Waco appealed to the Waco City Council this week to restrict payday lending, arguing that the predatory practices place consumers in debt traps.

    November 18
    Star-Telegram Online
    It’s time to reform the predatory lending industry
    The article calls for the Texas legislature to propose reforms for the payday and auto title loan industries, arguing that the industries offer predatory loans that trap consumers in cycles of debt.

    November 18
    The Financial Brand
    Do Credit Unions Share a Social Obligation to Serve the Underserved?
    The article describes how credit unions support the underbanked and unbanked by providing financial services with low interest rates and fees, offering safer and more affordable loan options.

    November 19
    Huffington Post
    Here’s The Dodgy Payday Lender Behind That ‘Grassroots’ White House Petition
    ACE Cash Express recently funded a “Petition Message Development” to encourage its consumers to sign a “We the People” petition to protect payday lending from federal regulations. Just last year, the business was ordered to pay millions of dollars by the CFPB due to illegal debt collection practices.