Payday News, week of February 5, 2016

Febraury 4, 2016
Daily Kos
These 10 House Democrats Just Voted to Make It Tougher to Investigate & Prosecute Bank Fraud
H.R. 766 would curtail federal scrutiny of bank transactions with payment processors, payday lenders, and other companies that are at high risk of engaging in money-laundering, financial fraud, or terrorist financing.

February 3, 2016
Waco Tribune
Payday lending limits win Waco council support, 5-1
An ordinance regulating payday and auto title lenders passed Waco City Council on Tuesday on its first reading, with the council voting 5-1 in favor.
For more coverage:
Waco Tribune | Loosening restrictions on traditional banks is sure start to reforming payday-lending practices
Waco Tribune-Herald | Waco city council to vote on payday lending regulations
KWTX | Waco: Council approves payday lending ordinance
Waco Tribune | In the wake of state, federal failures, cities must step up with lending reforms

February 3, 2016
Argus Leader
Payday lending’s money man
The Mount Rushmore State’s payday lending clash is a key crusade for Aycox, a 48-year-old college dropout once described as the industry’s “most impassioned evangelist” when it comes to fighting off legislative or ballot reform with aggressive, well-financed tactics.

February 3, 2016
$2 Million Spent On Amendment U
The payday industry is backing constitutional amendment U on November’s ballot.
For more coverage:
Keloland | Payday Lenders Making Changes Before New Rules Arrive

February 3, 2016
Knoxville News Sentinel
City Council asks MPC for zoning ordinance for payday lenders
Knoxville City Council members have asked the Metropolitan Planning Commission to draft an ordinance regulating where payday lenders can set up shop.

February 3, 2016
News & Observer Online
Appeals court puts payday loan lawsuit back before judge
A federal appeals court has put a Virginia man’s lawsuit over a payday loan back before a judge.
For more coverage: WWBT-TV Online

February 3, 2016
Albuquerque Business First
Why one local exec says capping lending interest rates is important for business
Payday lenders would be barred from charging interest rates above 36 percent — a far cry from the average 300 percent many of those lenders currently charge — state employees could potentially see small, short-term loans offered to them in future, and banks and credit unions could see an influx of underbanked clientele.

February 3, 2016
Los Angeles Times
Why is the UC system investing in a payday lender accused of trapping people in perpetual debt?
UC’s connection to payday lending has skated below the radar for about a decade.

Febraury 3, 2016
Kileen Daily Herald
New rules for payday lenders may be coming
Payday-lending companies in Killeen will likely have to face new regulations soon after the Killeen City Council decided to move forward with legislation at a workshop Tuesday evening.

February 2, 2016
Allied Progress
Professor Falsely Claims Payday Lending Is Not Wildly Profitable
Steve Bradley, an Associate Professor of Management and Entrepreneurship at Baylor University wrote in an op-ed, “Critics often contend payday lending is wildly profitable, but it’s not; the average profit margin of payday lenders is similar to that for other businesses.”

February 2, 2016
Payday lending popularity not declining in Alabama, reforms needed, state says
The popularity of payday lending in Alabama has not declined over the past half-year, despite persistent calls over the course of 2015 from poverty advocates, officials and even President Barack Obama to rein in the controversial practice in the state, according to the state Banking Department.

February 2, 2016
The Pitch News
As regulators put a price tag — $1.32 billion — on what Scott Tucker’s payday-lending enterprises have squeezed out of poor people, a grand jury convenes
Tucker, the Federal Trade Commission is convinced, is the architect of a maze of payday lending enterprises, the elaborate corporate structure and misleading loan terms of which were meant to sidestep consumer protection regulations.

February 2, 2016
Daily Press
Quick loans take hostages
According to the State Corporation Commission, the average payday loan in Virginia is 45 days in length and carries a 278 percent annual interest rate.

February 2, 2016
Yahoo Finance
Title Loans vs. Payday Loans: A Side-by-Side Comparison
About 5% of American adults use payday loans to help pay the bills, but only about 1% — slightly more than 2 million people — borrow from auto title lenders.

February 2, 2016
Argus Leader
Short-term lender gives $1.7M for interest rate amendment
A Georgia company that provides short-term loans has contributed about $1.7 million to a South Dakota group pursuing a ballot measure that opponents say is an industry-backed attempt to insert a loophole allowing unlimited interest rates into the state constitution.

February 1, 2016
Knoxville News Sentinel
Knoxville City Council tackles payday lenders
Payday loan lenders setting up shop in Knoxville may soon have to do so at least 1,000 feet from residential areas and each other.

February 1, 2016
D. Lezama: Failure to stop payday loan gouging is shameful
It is a shame that the government in Wisconsin is so selfish that they don’t do something about the gouging of people with extremely high interest rates on payday loans.

February 1, 2016
Payday lenders and credit firms to pay for ‘illegal money’ enforcement teams
Payday loan firms and credit card companies could be charged a fee to fund the work of teams cracking down on loan sharks, the chancellor has announced.

January 31, 2016
Northwest Herald
Huntley halts permits for payday loan, resale, pawn shops for 6 months
The Village Board voted Thursday to place a six-month moratorium on permits for payday loan facilities, currency exchanges, resale shops and pawn shops after village staff said they have seen a recent increase in inquiries for those types of businesses.

January 31, 2016
Fairfield Daily Republic
Fairfield considers ban on new payday lender, check cashing, car title loan businesses
A moratorium on car title loan businesses – part of alternative financial services clustered on North Texas and West Texas streets – goes before the City Council next week with a city staff report that says high concentration of such companies affects the community’s character.

January 31, 2016
Dave Adams: Payday lenders, and a future without them
Our goal, though, shouldn’t solely rest on preventing the expansion of payday lending. A loftier objective is to equip Michigan residents with the tools they need to manage their finances so they won’t need to go to a payday lender, no matter the amount they earn.

January 30, 2016
The Daily Republic
Supreme Court is next arena for battle on payday lending
The ballot measure would cap short-term loans at 36 percent.

January 29, 2016
Mississippi Business Journal
UPDATED: State moves to close down payday lender All American, heavily fine owner
State banking regulators say they are ready to shut down Madison payday lender All American Check Cashing’s 43 stores and fine owner Michael Gray $3 million for illegal loan rollovers and other offenses.

January 28, 2016
Allied Progress
Tell Us Again Why Payday Lenders Say They Can’t Afford Reform?
Payday Lenders Say They Can’t Afford Lower Interest Rates, Caps on the Number of Loans a Borrower Can Take Out, and Other Reforms.