Payday News, week of April 22, 2016

Partner blogs, posts & press releases:

April 20, 2016
Center for Responsible Lending (CRL)
New CFPB Report Details Financial Harms Caused by Payday Lending
Today the Consumer Financial Protection Bureau (CFPB) released a new report that proves how high-cost fees on small-dollar loan create rather than resolve financial challenges for borrowers.

April 20, 2016
Consumer Federation of America (CFA)
CFPB Research Finds That Payday Loans Harm Consumers, Trigger Overdraft Fees
Today, the Consumer Financial Protection Bureau (CFPB) released a new report documenting the harm caused when payday lenders use direct access to a borrowers’ bank account to collect payments-including frequent, high overdraft fees and even account closure.

April 19, 2016
National People’s Action
A statement from Liz Ryan Murray, Policy Director of National People’s Action on the Consumer Financial Protection Bureau report “Online Payday Loan Payments”, released today.

Americans for Financial Reform (Stop the Debt Trap)
AFR statement on CFPB online payday report
The new report, which looks at the way online lenders collect payments, exposes a set of tactics that saddle borrowers with heavy bank fees on top of the triple-digit interest rates charged by the lenders themselves.

Virginia Organizing
Virginia Organizing at the CFPB Hearings
On April 7, 2016, Virginia Organizing leaders traveled to Washington, D.C. for the Senate Banking Committee hearing on the Consumer Financial Protection Bureau (CFPB).

Hebrew Free Loan Society
The CFPB does not intend to provide this opportunity to payday lenders – it sees whatever regulations it will issue as a floor and not a ceiling. Nevertheless, consumer advocates, civil rights leaders and faith-based groups are preparing to defend our state’s laws against inevitable attack.

Other Top Stories:

April 17, 2016
Virginian Pilot
Debra Grant: Payday lenders prey on women, families
We need options like Bank On for people to learn to budget better and save money for emergencies, but we also need to limit the availability and reach of these loans — loans where borrowers are paying more in interest and fees than they are to pay back the actual loan. Strong consumer protections from the federal CFPB are a good start to reforming this problem.

April 22, 2016
Crowed Fund Insider
CFPB Takes Action Against Online Lead Aggregator for Loans
The Consumer Financial Protection Bureau (CFPB) filed suit in federal court against co-founders who allegedly sold consumer loan applications without appropriate safeguards.
More coverage:| CFPB Throws The Book At Payday Loan Aggregator

April 22, 2016
Harker Heights Herald
Harker Heights council considers payday lending ordinance
With Killeen passing an ordinance in February that regulates payday loan or credit access business, Harker Heights is looking to adopt a similar ordinance.

April 21, 2016
Mississippi Business Journal
All American staving off shutdown, fine through legal appeals
The U.S. Court of Appeals for the Fifth Circuit is the next stop in embattled All American Check Cashing’s fight to keep its 43 Mississippi payday lending stores open and avoid paying a $3 million fine.

April 20, 2016
The Message
Some Can’t Wait For Federal Regulations On Payday Lending
The federal Consumer Financial Protection Bureau, created in 2010 in the wake of a severe recession as part of the Dodd-Frank bill enacted by Congress, is preparing regulations to govern the practice of payday lending, which has grown widely over the past couple of decades.

April 20, 2016
American Banker
How to Keep Credit Flowing Under CFPB’s Payday Plan
We should promote a quasi-free-enterprise solution, as proposed herein, to ensure that short-term credit keeps flowing after implementation of the CFPB’s payday lending rule. What we should not do is put the sole burden of a mission impossible solution on the CFPB.

April 19, 2016
US Consumer Financial Protection Bureau Director Richard Cordray Presents Agency’s Semi-Annual Report to Congress
US Consumer Financial Protection Bureau Director Richard Cordray presented the CFPB’s Semi‑Annual Report at a hearing before the Senate Committee on Banking, Housing and Urban Affairs.

April 19, 2016
The Arizona Republic
Letter: No one (except lenders) wants flex loans
In his Monday op-ed, Mesnard defended his bill to allow 204 percent debt-trap loans without ever mentioning the interest rate. On the House floor, he even admitted that he has not had a single constituent say, “I need this bill.”
More coverage:
The News & Observer | Last-ditch effort to revive new payday lender loans Reprint: Miami Herald

April 18, 2016
One attorney’s approach to payday loans
While it’s an issue of concern for many people, others say they had no idea about predatory lending. The question now is whether anything should be done about the situation.

April 18, 2016
Lawmaker Wants Stiffer Rules For Payday Loan Companies
The payday loan industry contributed hundreds of thousands of dollars to Tennessee lawmakers before the legislature passed flex loans.

April 21, 2016
Los Angeles Sentinel
Diverse Christian Leaders Call Payday Lending Immoral, Demand Reform
The survey found that Blacks are the most likely to know someone who has borrowed a payday loan (58 percent) or have borrowed one themselves (49 percent).

April 21, 2016‎
Crackdown On Payday Lenders Surprises Some
In the 1990s, payday lenders cut deals with small banks such as the former Crusader Bank of Philadelphia to make high-rate loans under their regulatory charters. When state officials challenged that practice, County Bank of Rehoboth Beach, Del., and other lenders in states with sky-high loan limits lent their names to payday lenders.

April 20, 2016
Herald Tribune
Rules to avoid sharks of the payday loan variety
Right now, proponents and opponents of payday lending are squaring off, waiting for the Consumer Financial Protection Bureau to release proposed rules affecting these loans and other short-term borrowing, such as auto title loans.

April 20, 2016
Yahoo Finance
Payday Loans Are Shutting Down Some Americans’ Bank Accounts
Online payday lenders are creating new hazards for borrowers, leading to large overdraft fees and even loss of access to checking accounts, federal regulators claimed Wednesday.

April 20, 2016
The Pitch
KC’s dethroned online payday lenders aren’t gaming the feds anymore
As authorities over the last year have closed in on central figures of payday lending, the people who made Kansas City the payday-lending capital of North America find themselves in a pinch and looking for a way out.

April 20, 2016
Argus Leader
Letter: Where is ELCA church voice re: payday loans?
I could hardly believe what I was reading when I read a recent Sunday article in the Argus Leader regarding the South Dakota ELCA church not taking a stand against payday lending.

April 19, 2016
The Atlantic
Payday Lending: Will Anything Better Replace It?
The problem isn’t just that people who desperately need a $350 loan can’t get it at an affordable rate, but that a growing number of people need that loan in the first place.

April 18, 2016
Austin American-Statesman
Austin community lender launches alternative to payday loans
Valdez and her colleagues at Business and Community Lenders of Texas, or BCL, were preparing to launch a new small-dollar lending program in Dallas, offering about 13,000 city employees an alternative to costlier payday and auto-title loans.

April 15, 2016
Cape Gazette
Chancery Court judge strikes down payday loan
Consumer advocates in Delaware have been fighting to regulate the state’s payday loan industry, which for years has been known for charging triple-digit interest rates.