Payday News, week of April 1, 2016

Partner blogs, posts & press releases:

March 29, 2016
Leadership Conference on Civil and Human Rights
Letter to Rep. Wasserman Schultz on the “Consumer Protection and Choice Act”
“H.R. 4018 would impose a two-year moratorium on any rulemaking by the Consumer Financial Protection Bureau (CFPB) that would regulate “deferred presentment transactions” – better known as, but not limited to, so-called “payday loans.” After these two years, it would exempt any state from CFPB payday lending regulation if the state has enacted a regulatory system that is similar to the one that currently exists in Florida.”

March 24, 2016
National Council of La Raza (NCLR)
Report: Florida Payday Lending Law Traps Communities of Color in Endless Cycle of Debt
Payday lenders have stripped a staggering $2.5 billion in fees from Floridians since 2005. In 2015 alone, their shady lending practices yielded more than $300 million, according to a new report NCLR unveiled today with the Center for Responsible Lending (CRL).

March 24, 2016
Center for Responsible Lending (CRL)
Payday Lenders Strip Florida Borrowers of $2.5 Billion in Fees, Despite State Law
Floridians have paid more than $2.5 billion in fees on high-cost payday loans over the last decade, according to new research by the Center for Responsible Lending (CRL).

March 22, 2016
North Dakota Economic Security and Prosperity Alliance
From CFED: The CFPB Released a Plan to Regulate Predatory Lenders a Year Ago, but Consumers are Still Waiting for Action
Predatory lending strips wealth from low-income households and can trap borrowers in a crushing cycle of debt. So exactly one year ago this Saturday, the Consumer Financial Protection Bureau (CFPB) released an outline of proposals to regulate payday and other forms of small-dollar lending.

Other Top Stories:

March 31, 2016
Payday lenders and regulators are gearing up for new showdown
These questions are extreme and provocative, as is the subject, which in another month or so will be pertinent as the federal Consumer Financial Protection Bureau releases proposed rules to put the brakes on the payday lending industry.

March 30, 2016
PolitiFact Florida
Debbie Wasserman Schultz attacked for bank donations and position on payday loan bill
A law professor running against U.S. Rep. Debbie Wasserman Schultz of South Florida says she is in the pocket of big banks and isn’t looking out for consumers who get crushed by debt from payday loans.
More coverage:
Tampa Bay Times | PolitiFact Florida: Checking an attack on Debbie Wasserman Schultz about payday loans
Sunshine State News | Fact-checking an attack on Debbie Wasserman Schultz about payday loans

March 30, 2016
Non Doc
Fast cash, fast debt: The battle over payday loans
“I’m generally always supportive of bills that expand the free market,” Holt told NonDoc, “but it became evident pretty quickly that this industry has a lot of vocal opponents and that passage of the bill was unlikely in the Senate, so I withdrew it rather than waste people’s time.”

March 28, 2016
American Banker
A Point of Clarification on Our Payday Loan Findings
Analyses by Pew, the Center for Responsible Lending, and the CFPB document the risk consumers face falling into “debt traps,” finding that large shares of payday loans come from repeat borrowers, who can end up paying more in fees and interest than the original loan value.

March 26, 2016
Orlando Weekly
Payday loans have cost Floridians $2.5 billion in last decade, report finds
Since 2005, Floridians have paid $2.5 billion in fees to payday lenders, despite state regulations laws, according to a new report from the Center for Responsible Lending.
More coverage:
Vice | Inside the Battle Over Florida’s Racially-Charged Payday Loan Racket
The Inquisitr | Payday Loans Hurting Minorities? CFPB To Implement New Regulations

More News:

March 31, 2016
Yahoo Finance
High court: AG’s loan ballot measure explanation is valid
The attorney general’s office doesn’t have to rewrite an explanation of a ballot measure that would cap short-term lenders’ interest rates in South Dakota to include the industry’s contention that it would drive those companies out of business, the state Supreme Court said in an opinion released Thursday.
The News & Observer and The Olympian
More coverage:
KDLT | Ballot Measure Capping Payday Loan Interest Rates Will Not Be Rewritten

March 30, 2016
U.S. Sues Ferrari-Racing Payday Mogul to Seize $48 Million
The U.S. is trying to seize $48 million from Ferrari-racing payday loan mogul Scott Tucker, saying he illicitly transferred the funds into bank accounts of three Native American tribes to conceal his ownership and control.

March 29, 2016
American Banker
New Coalition to Push for Payday Loan Alternatives
The Coalition for Safe Loan Alternatives intends to become a peer-to-peer forum for best practices among the alternatives to payday loans.

March 29, 2016
Delaware Law
Court of Chancery Voids ‘Unconscionable’ Payday Loan
Calling its terms unconscionable, the Court of Chancery this month voided a payday loan that required a former hotel housekeeper to pay back $1,820 on a $200 principal.

March 28, 2016
The Arizona Republic
Letter: No right to die, but you can drown in debt
On the same page of the paper there were columns telling us that the “right to die” bill was blocked in the Legislature while they approved the return of payday loans giving it a new title, “flex loans.”

March 25, 2016
New York DFS Takes Action Against Online Payday Loan Lead Generator
Recently, the New York DFS announced that an online payday loan lead generator and its CEO will pay a $1 million penalty and cease payday loan lead generation activities in New York to resolve allegations that its payday loans charge fees had interest rates greater than the usury limits allowed under New York law, and that it failed to protect consumers’ personal information.

March 25, 2016
Legal Reader
Online Company Selling Customer Information To Payday Lenders To Pay $1
Blue Global, LLC, an online company, sells customer information to businesses making payday loans.