Payday News, week of February 12, 2016

February 12, 2016
Top CFPB Official Defends Federal Efforts on Payday Lending
A top official at the Consumer Financial Protection Bureau (CFPB) defended the agency’s regulatory steps on payday lending during a congressional hearing that explored preemption and state regulation of short-term, small-dollar products.

February 10, 2016
U.S. payday lending crackdown brings race car driver’s arrest
An indictment filed in Manhattan federal court said Tucker earned hundreds of millions of dollars in profits through payday loans, spending on luxury homes, cars, jewelry, a private plane and his professional racing team, Level 5 Motorsports.
For more coverage:

  • Reuters | U.S. to indict racecar driver over payday lending scheme- source
  • Forbes | Racecar Driver Arrested As Part Of Massive Online Payday Loan Scheme
  • ABC News | Pro Racecar Driver Scott Tucker Charged in Payday Loan Scam
  • The Kansas City Star | KC payday lenders Scott Tucker and Richard Moseley Sr. indicted in federal crackdown
  • Jalopnik | Racer Scott Tucker Arrested In Apparently ‘Massive’ Payday Lending Scheme
  • Fortune | This Race Car Driver Was Arrested for Running a Payday Lender Fraud
  • CNN Money | Race car driver arrested in alleged $2 billion payday lending empire
  • The Wall Street Journal | Race Car Driver Scott Tucker Charged With Running Fraudulent Payday Lending Operation
  • The Denver Post | Feds look to seize Aspen home of accused scammer, racecar driver and Feds want to seize $8M Aspen home of racecar driver Scott Tucker
  • Daily Kos | Payday Lenders Face Multi-Billion Dollar RICO Charges, With Feds Citing 4.5 Million Americans Abused
  • The Kansas City Star | Rise and fall of Scott Tucker and other payday lenders is a sobering Kansas City story
  • Kansas City Business Journal | Feds arrest two KC-area men in $2B payday lending enterprise
  • Money (Times)| Race Car Driver Scott Tucker Indicted in Massive Payday Lending Scam
  • New York Post | Race car driver arrested in massive payday loan scheme
  • February 9, 2016
    Law 360
    Obama Seeks Payday Lending Alternatives In 2017 Budget
    The Obama administration on Tuesday continued its push against the payday lending industry by including a small program in its $4 trillion budget aimed at increasing the offerings of short-term credit available to lower-income Americans.

    February 12, 2016
    Longview News-Journal
    The truth about payday lending
    Longview is considering enacting an ordinance that would establish a program to register and regulate “credit access businesses” within the city of Longview. Such business are more commonly known as payday or auto title loan lenders and offer access to quick cash at rates often above a 400 percent annual percentage rate.

    February 11, 2016
    Public News Service
    MN Religious Leaders Continue Push to Reform Payday Lending
    Ahead of the upcoming legislative session, Minnesotans for Fair Lending is urging Minnesota lawmakers to limit the number of payday loans a borrower can have.

    February 11, 2016
    Yahoo Finance
    Economic Worries and Payday Loans
    Yesterday the U.S. Attorney for the Southern District of New York announced criminal charges in two Internet payday lending cases, one against Richard Moseley and the other against Scott Tucker and Timothy Muir.

    February 11, 2016
    Payday Lenders to Pay For Anti-Loan Shark Team
    The government is to withdraw its funding for the Illegal Money Lending Teams and instead, replace it with a levy placed on payday lenders and consumer credit providers.

    February 11, 2016
    Federal judge allows Pa. AG’s case alleging illegal payday loan scheme to move forward
    A federal court last month sided with Pennsylvania Attorney General Kathleen Kane in a consumer protection lawsuit filed against a Texas-based company for allegedly engineering an illegal payday loan scheme over the Internet.

    February 11, 2016
    Newsroom America
    Criminal Charges Against Owner Of $161 Million Fraudulent Internet Payday Lending Enterprise
    Richard Moseley Sr has been charged with wire fraud and violating the Racketeer Influenced and Corrupt Organizations Act (“RICO”) and the Truth in Lending Act (“TILA”) for operating a payday lending enterprise that systematically evaded state usury laws in order to charge illegally high interest rates, and for issuing payday loans to consumers who never even sought them.

    February 10, 2016
    The Arizona Republic
    Payday loans are back with a new name
    Some high-powered Arizona lawmakers are behind an effort to bring back the kind of high-interest, predatory loans Arizonans banned in 2008.
    For more coverage:

  • AZCentral | Payday loan redux lost the first round
  • February 10, 2016
    Law 360
    Payday Lender Charged With $161M Fraud SchemeA Missouri man has been indicted by a New York grand jury with running a payday lending scheme that evaded state usury laws and collected over $161 million from hundreds of thousands of customers, Manhattan U.S. Attorney Preet Bharara announced Wednesday.

    February 9, 2016
    CFPB Presses Banks, Credit Unions to Offer ‘Small-Dollar Loans’
    The Consumer Financial Protection Bureau, preparing to roll out rules​aimed at reining in high- interest payday loans, is jawboning banks and credit unions to provide better alternatives for borrowers in need of small, short-term loans.

    February 9, 2016
    Enid News & Eagle
    Oklahoma falls to 34th in nation for financial security
    One area where we especially fall behind is in having no protections for consumers against predatory payday lending. In Oklahoma, a borrower taking out the maximum allowable loan of $500 can be charged $65 for a loan of as short as 12 days.

    February 9, 2016
    Payday lender penalised for overcharging consumersASIC continues to focus on the payday lending sector with Fair Go Finance Pty Ltd (Fair Go Finance) becoming the most recent lender to be investigated by the corporate regulator.

    February 8, 2016
    Lincoln Journal Star
    Lincoln senator wants changes in payday loan rules
    “LB1036 would still make payday loans available but limit how much lenders are allowed to profit from families in difficult circumstances,”

    February 8, 2016
    The Killeen Daily Herald
    Killeen OKs payday lending ordinance
    An ordinance restricting payday lending businesses and a resolution allowing the city to move forward with sewer rehabilitation are among the items for consideration Tuesday by the Killeen City Council.

    February 8, 2016
    Net (Nebraska PBS & NPR stations)
    Police Chase Debate Continues; Payday Lending Proposal Previewed
    The proposal by Lincoln Sen. Kathy Campbell limits monthly payments to 5 percent of borrowers’ income and lets lenders charge interest up to 36 percent per year with a maximum monthly fee of $20.

    February 8, 2016
    Chicago Tribune Online
    Payday lenders lose their tribal-law loophole
    Can a payday lender’s contract require all borrowers’ disputes be subject to an arbitration process in which decisions are exempt from federal law? In a decision announced this week with potential consequences for millions of contracts signed every day, the U.S. Court of Appeals for the 4th Circuit has said no.

    February 8, 2016
    Louisville Business First
    This Louisville startup wants to hit payday lenders where they liveBlakely’s goal is to provide a better credit alternative to low and middle income families that either have few or no other credit options available to them, or lack emergency savings. The exact people that might otherwise use a payday loan service.

    February 7, 2016
    South Florida Sun-Sentinel
    Pompano eyes tougher codes to upgrade key areas
    Under changes the city commission will consider Tuesday, thrift shops, check-cashing or payday loan stores and all health care except for medical offices would be prohibited from opening downtown and on Atlantic Boulevard, the city’s main thoroughfare.

    February 7, 2016
    The Monitor
    Alternatives to payday lending needed
    Texas’ border region has many hard-working but often financially struggling families, and has been particularly hard hit by the proliferation of these high-cost payday loan businesses. In 2014, these businesses drained $1.5 billion in fees and repossessed 44,000 cars in Texas.

    February 5, 2016
    Jackson Free Press
    Stamps: No New Payday Loan, Check Cashing, Liquor, Pawn Stores
    A Jackson city councilman wants to put a halt to the expansion of payday loan stores, check cashers and liquor stores in the capital city.

    February 5, 2016
    Keloland Television Online
    Petition Challenge To Stop Payday Lender-Backed Amendment
    The CEO of North American Title Loan, Rod Aycox, has spent a lot of money to get your vote on payday lending. His Georgia based company has doled out more than $2 million to get Amendment U on the ballot.