Payday News, April 22 – 29
April 26, 2016
Florida Politics
Advocacy Group Asks Public What Florida Lawmaker They Should Target Next Over Payday Loans
After nearly two months of hammering Democratic National Committee Chairwoman Debbie Wasserman Schultz for “sabotaging” President Barack Obama’s efforts to hold payday lenders accountable, Allied Progress now says they’re moving on to target another Florida lawmaker for the same offense.
More coverage:
Tampa Bay Times | Which Florida House member will be next target in payday loan issue?
Partner blogs, posts & press releases: (please forward these along in the future)
April 25, 2016
Allied Progress
WHICH PREDATORY PAYDAY PAL IN CONGRESS SHOULD BE EXPOSED NEXT?
#DebtTrapDebbie Wasserman Schultz isn't the only Member of Congress trying to sabotage President Obama's hard work to rein in predatory payday lenders through the Consumer Financial Protection Bureau (CFPB). Vote now and help Allied Progress decide who to expose next. Who will it be? Rep. Corrine Brown – Rep. Kathy Castor – Rep. Lois Frankel – Rep. Alcee Hastings – Rep. Patrick Murphy – Rep. Bill Posey – Rep. Dennis Ross? CAST YOUR VOTE TODAY
Reprint: Politico
Other Top Stories:
April 28, 2016
America Blog
Debbie Wasserman Schultz plays both sides of payday lending
However, Wasserman Schultz’s co-sponsorship of the bill makes her a bit of an oddball. As Allied Progress and a collection of other advocacy organizations pointed out in a letter sent to her office yesterday, she remains a co-sponsor of H.R. 4018.
April 27, 2016
The Wall Street Journal
Consumer Finance Watchdog Plans to Supervise Marketplace Lenders
The Consumer Financial Protection Bureau plans to bring the largest online lenders under its supervision as soon as late 2017, the first time the lenders would face federal scrutiny similar to that of banks, according to people familiar with the matter.
April 27, 2016
Credit Union Times
Payday Loan Complaints Decline 14%: CFPB
Ironically, complaints about payday loans showed the largest decrease from January to March 2016 compared to the same time period in 2015; a 14% decrease.
April 27, 2016
The News & Observer
Committee passes watered-down payday loan bill
A House committee on Wednesday shelved a bill that would have given borrowers up to six months to repay payday loans, but agreed to send a watered-down version to the House for a full vote.
Reprint: Clay Center Dispatch,Tuscaloosa News,St. Louis Post-Dispatch and Fox 10
More coverage:
WTOK | Committee Approves Payday Lending Bill
Decatur Daily | Payday lending bill advances, but future shaky
Montgomery Advertiser | House committee OKs stripped-down payday loan bill
Alabama Public Radio | Payday Loan Reform in Alabama? NFL Draft looms…
Al.com | Alabama House committee approves lighter version of payday loan reform
The Anniston Star | Committee changes payday loan bill on the way to Alabama House
Times Daily | House committee approves lesser payday reform bill
Times-Journal | House to debate payday loans
April 27, 2016
Killeen Daily Herald
Heights OKs payday lending ordinance
The City Council on Tuesday evening passed an ordinance setting forth registration requirements and credit extension guidelines for payday loan or credit access businesses.
April 26, 2016
Springfield News-Leader
Local church leaders confront lawmakers about payday lending laws
A group of church leaders and advocates headed to Jefferson City to confront lawmakers about the payday and car title loan industry and the lack of regulation in Missouri.
April 26, 2016
WTSP
Payday loan changes could affect thousands in Bay area
So now, the federal government is considering regulations to protect borrowers like Sheila Lymon. Unable to qualify for normal credit, Sheila is like tens of thousands living in Florida, who rely almost weekly on payday loans just to make ends meet.
April 26, 2016
Orlando Sentinel
Don't block limits on payday loans: Editorial
Florida’s congressional delegation is in rare bipartisan accord on an issue. Unfortunately, it's the wrong position. The issue is the Consumer Financial Protection Bureau's plan to regulate payday loans.
April 25, 2016
CBS Money Watch
1,000% loans? Millions of borrowers face crushing costs
The wrangling over the rules of the road for payday lending will continue for some time to come. Even after the CFPB issues its proposal, it could take a year or more to pass a final rule.
Reprints:
KBZK.com
April 25, 2016
JDSupra
The CFPB’s report on online payday loan payments: setting the stage for limits on collection practices?
As we have commented previously, the CFPB has not undertaken the cost-benefit analysis required for a proper finding of “unfair” or “abusive” conduct, as required to justify the type of broad-based and restrictive rulemaking it is contemplating.
April 25, 2016
American Banker
How Far Will RICO Probes of Online Lenders Go?
In a significant development, however, the U.S. Department of Justice is now applying a statute more commonly known in organized crime cases – the Racketeer Influenced Corrupt Organization Act – to the conduct of online payday lenders.
April 24, 2016
WacoTribe.com
Striving to bring a voice to the people: Q&A with Waco City Council District 3 challenger Dustin Weins
Weins says he was prompted to run by Kinnaird’s opposition to a city ordinance regulating predatory practices of local payday and auto-title lenders.
April 24, 2016
Longview News-Journal
Program offers option for some in need of quick funds
An idea introduced as an alternative to payday loans has found support from local lenders and leaders — and skepticism from payday loan advocates.
April 23, 2015
The Oklahoman
Religious coalition wants limits placed on payday loans
American Christians overwhelmingly support government regulation of the predatory lending industry, according to Southern Baptists and other religious leaders in the Faith for Just Lending Coalition.
April 23, 2016
The Seattle Times
Rules needed to stem payday-loan junkies
Payday loans can be useful if used occasionally to meet unexpected contingencies. But if the need for the loan arises from a persistent gap between the borrower’s income and expenditures, the loan will not eliminate the gap.
April 22, 2016
Pittsburg Courier
Black America’s unholy trinity: Predatory lending, poverty and poor health
Consumers of color and those of modest means who need just a few hundred dollars are often the financial prey that payday lenders love.
April 22, 2016
Loan Safe
Bonamici, Cummings Introduce Legislation to Stop Abuse, Fraud in Payday Lending
Today, Reps. Suzanne Bonamici (D-OR) and Elijah E. Cummings (D-MD) introduced legislation to protect consumers from predatory lending practices and crack down on some of the worst abuses in the industry.
April 22, 2016
Lexology
CFPB Report on Online Short-Term Lending Finds Borrowers Face Hidden Costs
In February 2016, Director Cordray made remarks suggesting that, despite feedback received from the industry, the CFPB is unlikely to significantly modify the proposals in its March 2015 Outline. A proposed rule is anticipated from the CFPB this spring.
More coverage:
CIO Today| Consumers Who Use Online Lenders Often Get Hit with Bank Fees
NBC News | Online Payday Loans Have 'Hidden Costs,' Federal Report Says
The Morning Call | A hidden cost to already costly payday loans
April 20, 2016
Huffington Post
Payday Loans: The Worst Abuse Is Not Regulated
The internet is a cost-effective way of identifying and soliciting potential clients for payday loans. Potentially, it could also be a way to regulate the worst abuse of payday lending.
More News:
April 30, 2016
Law Street Media
Payday Loans: Predatory or Necessary?
But calls for regulation do not address the underlying concern that if the payday loan industry were eliminated and nothing replaced it the unbanked and underbanked might actually be worse off than they were before.
April 30, 2016
Nerdwallet
A New Option for Payday Loan Borrowers
Borrowers in California and Texas searching for quick cash have a new option: a database of low-cost alternatives to high-interest payday loans.
April 29, 2016
The New York Times
A Private Equity Alum’s Guide to Better Payday Lenders
The company makes money through referral fees when people sign up for new credit cards and other financial services through its site.
April 29, 2016
WVTF
New Rules Proposed for Financial Products Considered "Predatory Lending"
"You know, I hope you will move quickly to complete your rule making on payday loans. You are the best hope for millions of American families to avoid these debt traps in the future."
April 28, 2016
Florida Courier
Payday lending is ‘an abomination in plain sight’ (reprint of an article originally published on April 12)
The only hearing witness that spoke in support of all that CFPB has accomplished was Reverend Dr. Willie Gable, Jr., pastor of New Orleans’ Progressive Baptist Church and chair of the Housing and Economic Development Commission of the National Baptist Convention, USA.
April 26, 2016
Jackson Free Press
Moratorium on Payday Lenders, Liquor, Title and Pawn Stores in Ward 4 Moves Ahead
Last Monday the Jackson City Council Planning Committee passed an order to curtail the further proliferation of "title loan, payday loan, check cashing, liquor store and pawn shop businesses."
April 26, 2016
KTVB
Boise Police warns of payday loan scam
Police are asking people to be vigilant and avoid falling prey to scammers who use the threat of jail to separate victims from their money.
April 25, 2016
Housing Wire
Monday Morning Cup of Coffee: Should mortgage lenders consider payday loans?
Payday lending rules proposed by the Consumer Financial Protection Bureau would prevent consumers from re-borrowing to pay the interest on these loans, but has other consequences that hurt both lenders and consumers.