Payday News Stories, Weeks of November 7 and 14, 2015

October 29
Ballard Spahr LLP
Commerce Clause Does Not Prevent Minnesota from Regulating Internet Loans Made to State Residents, Minnesota Supreme Court Rules
The Minnesota Supreme Court recently ruled that the U.S. Constitution does not prevent the state from upholding its payday lending law in cases where online loans completed in Delaware were made to Minnesotan residents.

October 31
Springfield News-Leader Online
Our Voice: State should enact real reform
The author questions the lack of payday lending reform in Missouri and advocates for a 36% cap on payday loan interest.

October 31
KELO-TV Online
Faith Leader Organizes Payday Loan Petition Group
The article focuses on a group currently petitioning for a 36% cap rate on payday loan interest to be placed on the ballot in South Dakota.

November 1
News Tribune Online
Payday loans not always the best option: Tips from Better Business Bureau
Sean Spence, Mid-Missouri regional director with the Better Business Bureau, offers a perspective on taking out payday loans, warning against potential debt traps and suggesting alternative options for short-term credit.

November 2
Huffington Post
Payday Loan Industry Admits ‘Very Few’ Borrowers Repay Their Loans
The payday lending industry has consistently defended that their loans do not force borrowers into debt traps, but a recently released e-mail from Hilary Miller, president of the Payday Loan Bar Association and chairman of the Consumer Credit Research Foundation, demonstrates that the industry’s representatives are aware of the predatory nature of payday lending.

November 2
Washington Examiner
Lawmakers target military payday loans
In an effort to protect military families, as well as federal workers, from predatory lending, U.S. Rep. Matt Cartwright (D-PA) and U.S. Rep. Gerry Connolly (D-VA) have introduced the The Annuity Safety and Security Under Reasonable Enforcement (ASSURE) Act, which would cap military loan interest rates at six points above prime.

November 4
The Atlantic Online
How Google Plays Whac-A-Mole With Shady Advertisers
The article describes how predatory companies target vulnerable users of search engines like Google through advertisements, collecting sensitive data on consumers in the process.

November 5
The author calls for an end to predatory lending and suggests that the prevalence of high-interest loans is only part of the problem. He asserts that the reliance of consumers on payday and other predatory loans demonstrates a deeper issue in which more and more people are financially unstable and “unable to make ends meet.”

November 5
Arizona Capitol Times
There is no financial freedom or justice with payday loans
An Arizona pastor describes the turnstile of debt caused by payday loans.

November 5
UC conference to focus on payday lending
The author discusses the “Dodging the Debt Trap” seminar being hosted by the University of Cincinnati’s Center for Race, Gender, and Social Justice at its law school.

November 5
The Atlantic
Borrowing While Poor
This article discusses the problems low-income people encounter when trying to access the financial system or other forms of emergency financial insurance.

November 6
Bloomberg Business News
Credit union to open next summer
The new U.S. Eagle Federal Credit Union is being established in New Mexico, which may provide a safer, affordable alternative to payday lending in the under-served area.

November 6
Texas Observer Online
Jumping the Loan Sharks
New institutions serving as alternatives to predatory lenders are being introduced in Texas, where the Community Loan Center of the Rio Grande Valley was first established to offer more manageable short-term loans to consumers in need.

November 7
Waco Tribune Online
Councilman pushes for controls on Waco payday lenders
Waco’s city council considers joining 26 other Texas cities and towns in passing an ordinance curbing payday lending abuses.

November 9
Opinion: It’s time to revive postal banking
Mayor Albert B. Kelly of Bridgeton, NJ weighs in on the proposal for the U.S. Postal Service to provide financial services for unbanked and underbanked Americans.

November 11
American Banker Online
Veterans Stuck in Debt Traps Need More than Lip Service
The article highlights the need for stronger regulations on payday lending, which targets vulnerable members of society, including veterans. The author proposes a 36% cap rate on payday loans to prevent veterans from falling into debt traps.

November 11
Consumer group charges loophole allows continued payday lending in Ohio
Despite Ohio’s legal restrictions on payday lending, lenders have found ways to continue charging high fees to consumers due to a loophole in Ohio’s laws.

November 11
San Jose Mercury News
Campbell considering new rules for payday lending and check cashing businesses in city
The planning commission of Campbell, California is proposing an ordinance that would place regulations on payday lending businesses, including zoning restrictions.

November 12
American Banker Online
New Budgeting Apps Aim to Disrupt Payday Lending
Providing alternatives to payday lenders, start-ups are offering faster wage payments with lower or no fees to consumers so that they can access funds when in need. Consumers who use these services not have to wait days or weeks for their paychecks in order to pay off bills and access short term loans.

November 12
Huffington Post
Payday Lenders Hoping for a Grand Old Party in 2016
The article describes how despite new regulations setting restrictions on payday lenders, these lenders have spent millions of dollars to elect and lobby members of congress to support the industry.

November 12
Dallas Morning News
Editorial: Arlington shows courage on payday lending
The city council in Arlington, Texas is proposing payday loan and auto title restrictions to protect consumers against predatory financial practices.

November 12
St. Louis American
‘Color of Debt’ scrutinized
The article describes the debate on whether racial bias influences high rates of court judgments in debt collection suits in communities of color.

November 12
My Dayton Daily News
Ohio payday lenders thrive despite interest rate caps
This article discusses how payday lenders use a loophole in Ohio’s payday loan legislation in order to continue operating

November 14
Chattanooga Times Free Press
Covenant College talk raises warnings about payday lending
The author discusses a recent panel talk held at Covenant College entitled “Predatory Payday Lending: Today’s Debt Slavery.”

November 14
Columbus Dispatch
Payday lenders still prey on poor
The article discusses a recent study by the Center for Responsible Lending that found that payday and car title loans cost Ohioans double the amount that they did 10 years ago.

November 15
Akron Beacon Journal
Payday lending still surges in Ohio
This editorial discusses the loopholes used by the payday lending industry to circumvent Ohio’s payday lending law by shifting their operations to car-title lending.