Payday News, week of May 20, 2016

May 18, 2016
The Wall Street Journal
CFPB to Propose Payday-Loan Rule on June 2
The Consumer Financial Protection Bureau set June 2 as the day it will propose a long-awaited rule to curb payday lending, moving a step closer to implementing the first federal regulation for an industry now overseen by states.
More Coverage:
The Kansas City Star | Consumer watchdog group will hold public hearing in KC on payday lending
Consumer Financial Protection Bureau | Save the date, Kansas City, Missouri!
Kansas City Business Journal | Feds will hold hearing in payday lending capital of the U.S.
KSHB | National payday lending hearing to be held in Kansas City
KMBC | Federal hearing on payday loan industry to be held in KC
Credit Union Times | CFPB Payday Rules Expected Within Weeks

May 18, 2016
The New York Times
Study Finds High Rate of Repossessions in Auto Title Loans
The report is the first by federal regulators to look at the auto title lending industry, which has grown significantly since the recession but remains banned in half the country. The results could lead to additional regulations on the industry, like its financial cousin payday loans.
Yahoo Finance, Las Vegas Sun, CNBC, SeattlePi, The News & Observer, NewsMax, WRAL and Times Union
More coverage:
Los Angeles Times | Consumer watchdog turns its attention to auto-title loans
USA Today | Single-payment auto title loans are gateway to trouble, report suggests
Yahoo Finance | 1 in 5 Title Loan Borrowers Forfeit Their Car, Report Finds
Yahoo Finance | The nightmare of car-title loans
The New York Times | Single-Payment Car Title Loans Can Lead to Long-Term Debt
Pittsburgh Post-Gazette | Consumers warned about high-cost auto title loans
Las Vegas Review Journal | Most who take out auto title loans resort to reborrowing, official says

May 17, 2017
The Cap Times
Faith leaders, consumer advocates urge more attention to payday lending in Wisconsin
As the federal government gets closer to issuing a set of rules to regulate the payday lending industry, consumer advocates, faith leaders and lawmakers hope to draw attention to the issue in Wisconsin.
La Crosse Tribune, WiscNews and The Chippewa Herald
More coverage: | Wisconsin Public Interest Research Group Foundation: Faith leaders, advocates release new fact sheet detailing the impact of payday lending in Wisconsin
Wisconsin Public Radio | State Faith Leaders, Consumer Advocates Speak Out Against Payday Lending
WSAU | WISPIRG Releases Fact Sheet on Payday Lending Effects – Peter Skopec
WHBY | Advocates speak out about payday loans
The Journal Times | Faith leaders, consumer advocates urge more attention to payday lending in Wisconsin
Wisconsin Radio Network | Highlighting ‘predatory’ payday loans in Wisconsin
Milwaukee Courier | Payday lenders are Predatory Lenders

Partner blogs, posts & press releases:

May 18, 2016
Wisconsin Democracy Campaign
Payday Lenders Gave $339K in Wisconsin for Usury
The loosely-regulated payday lending industry preys on Wisconsin consumers and drains millions of dollars from the state’s economy, according to a new report by WISPIRG.

May 18, 2016
Dallas Anti-Poverty Coalition
It’s time to #StopTheDebtTrap
The Consumer Financial Protection Bureau (CFPB) will be releasing rules to regulate payday & auto title lenders soon. Let’s be ready.

May 17, 2016
Faith leaders and consumer and low-income advocates participated in a joint press conference call to detail the harms of payday and high-interest loans on individuals, families and communities across the state.

May 17, 2016
Payday loans are among the most predatory forms of credit on the market. Though they are marketed as having “reasonable” fees or charges, typical interest rates exceed 300 percent.

May 16, 2016
Old Dominion Watchdog
Lending influence: Progressive group profits from pushing financial regs
After persuading the feds to help eliminate competition in the payday lending market, that nonprofit and the credit union that founded it are turning their attention to the mortgage business.

May 16, 2016
Philadelphia City Council unites to stop the debt trap
The powerful payday lending industry is up to its usual antics again and right now is lobbying our lawmakers in Harrisburg to legalize their latest predatory lending model in Pennsylvania. Last week, the Philadelphia City Council united to stand against those efforts.

Other Top Stories:

May 19, 2016
The News & Observer
NY regulators say $3M in payday loan restitution coming
Financial regulators say two debt buyers have agreed to stop collecting illegal payday loans in New York under consent orders expected to result in $3 million in restitution.
More coverage:
Reuters | Payday loan buyers to discharge and refund $3 million to N.Y. state residents
Courthouse News Service | New York Touts $3M Payday Loan Settlement
Buffalo Business First | Payday loan settlement means refunds for Western New Yorkers

May 18, 2016
The News & Observer
Man pays $50,000 interest on $2,500 in payday loans
Things are better these days because poor people have more options when it comes to borrowing small amounts of money, he said. But still, he said, about four in 10 people who come into the food pantry can tell a sad story about payday loans.
More coverage:
MSN Money | How Payday Loans Of $2,500 Left One Man $50,000 In Debt
ABC News | Missouri Man Paid $50,000 in Interest After Taking $2,500 in Payday Loans
Epoch Times | Missouri Man Pays $50,000 Interest on $2,500 Payday Loan
Opposing Views | Man Pays $50,000 Interest To Help Injured Wife
The Charlotte Observer | Man pays $50,000 interest on $2,500 in payday loans
CBS 46 | Kansas City man owed $60K in payday loans after borrowing $2,500
AZ Family | Kansas City man owed $60K in payday loans after borrowing $2,500
KMBC | KC man shares payday loan horror story
Fox4KC | Attorney warns of payday loan ‘debt spiral’
Money | How Payday Loans Of $2,500 Left One Man $50,000 In Debt
The Grio | Payday loan nightmare: Man owed $60,000 in interest after borrowing $2500

May 17, 2016
The Philadelphia Tribune
Council pushes state to oppose payday lenders
City Council has adopted a resolution urging the state Legislature to oppose the passing of a bill that would legalize payday lending in Pennsylvania.

More News:

May 21, 2016
Danette Mitchell: Fighting against predatory lenders is making progress
To celebrate CFPB’s long-awaited announcement, Kansas City will host “The National Day of Action to End Predatory Lending” on June 2, and expects hundreds of grassroots and advocacy organizations, including thousands of people from across the country to attend the event.
The Reporter

May 19, 2016
Argus Leader
Payday lending amendment to remain on ballot
A constitutional amendment that would offer payday lenders exceptions to an 18 percent interest rate cap will remain on the November ballot, South Dakota Secretary of State Shantel Krebs announced Thursday.
More coverage:
Black Hills Pioneer | Candidates’ financial interest statements aren’t posted on Secretary of State’s site
Miami Herald | Secretary of state: Payday loan amendment challenge fails

May 18, 2016
The Hill
Debunking the myths of payday lending
My hope that the Consumer Financial Protection Bureau will recommend strong action against predatory lenders that take advantage of borrowers in need, locking them into perpetual debt and destroying their credit history.

May 17, 2016
Chattanooga Times Free Press
Payday lender Carey Brown pleads guilty, to pay fines for compensation fund
Chattanooga payday lender Carey V. Brown and two of the companies he once headed have pleaded guilty to criminal usury laws in New York and will pay $6 million in forfeiture fees to victims, according to a plea agreement announced today by Manhattan District Attorney Cyrus R. Vance, Jr.
More coverage:
Times Free Press | Chattanooga payday king justified illegal business by giving money to charity

May 16, 2016
JD Supra
CFPB Files Enforcement Action Against Mississippi Payday Lender
On May 11, 2016, it filed an enforcement action against Mississippi payday lender All American Check Cashing in the United States District Court for the Southern District of Mississippi.

May 16, 2016
Los Angeles Times
Google tells payday lenders to take their advertising business elsewhere
The Internet search giant announced Wednesday that it was banning advertisements for payday loans in order to protect its users “from deceptive or harmful financial products,” delivering another blow to an industry under increasing fire from regulators and consumer advocates.
More coverage:
Reuters | Cox: Pfizer death-row move serves investors, too
American Banker | Google’s Payday Ad Ban: Smart Move, But It Can Do Better
Tulsa World | Samuel Hardiman: Google ban on payday loan ads will start conversation
Financial Buzz | Google Bans Payday Loan Ads
The News & Observer | Vermont claims some credit for Google payday loan ad ban
The Seattle Medium | Google Bans Payday And Other Predatory Loan Ads
Vermont Biz | Vermont attorney general assists Google in ban of payday loan advertising
Forbes | This Week In Credit Card News: Using Peer-To-Peer Loan To Pay Card Debt; Google Bans Payday Loan Ads
The Memo | Google’s payday loans ad ban is about to change marketing
Tulsa World | Google ban on payday loan ads will start conversation
Bitterwallet | Google ban adverts for payday loans
JDSupra | Google To Ban Payday Loan Advertisements
Becker’s Hospital Review | Google bans payday loan ads, flagged as ‘dangerous product
The Boston Globe | As tech companies grow, so do their responsibilities

May 16, 2016
Knoxville News-Sentinel
City and federal regulations target predatory lenders
The city of Knoxville is considering new zoning regulations that would limit where businesses offering alternative financial services — a fancy term for pawn shops, payday loan companies and title loan firms — can set up shop.