Payday News, week of January 15, 2016

February 2016
How to Practice Safe Banking
Advertised as “EZ Cash” and “24-7 Finance,” the perils of payday loans, with exorbitant interest rates upward of 300 percent, trap households in long-term debt.

January 15, 2016
The Digital Universe
Orem lawmaker continues proposals to reign in payday lenders
An Orem lawmaker continues to push measures that regulate payday lending firms by filing a bill that would create a database to keep track of the number of loans held by borrowers.

January 15, 2016
Sanders, other advocates push for return of no-frills postal service banking
“We have millions and millions of low-income people who have to go to these payday lenders and pay o=utrageous interest rates. They’re getting ripped off right and left,” Sanders said on ABC’s “Jimmy Kimmel Live” in October.

January 15, 2016
The Columbian
Singletary: Know rights with debt collection
The Federal Trade Commission recently smacked down four debt-collection outfits and their affiliates that the agency engaged in abusive practices.

January 15, 2016
Uber, But for Banks: Wall Street Braces for Tech-Fueled Disruption
The Consumer Financial Protection Bureau is writing rules on short-term, small-dollar lending — usually called payday loans — an area of interest to Silicon Valley.

January 14, 2016
Triangle Tribune Online
CFPB cracks down on illegal debt collections: multimillion-dollar fines for major payday lender
On Dec. 16 and its third action against a large national payday lender, the Consumer Financial Protection Bureau ordered EZCorp, Inc. to refund $7.5 million to 93,000 consumers and pay an additional $3 million in penalties for illegal debt on high-cost payday and installment loans.
Reprints: Daytona Times, Westside Gazette and The Chicago Crusader

January 14, 2016
Longview News Journal
Payday lending business representatives push back against Longview City Council proposal
Payday lenders have used a loophole in the Texas Constitution to broker loans from banks while acting as a middleman that charges customers increasing fees for this service.

January 14, 2016
Albuquerque Journal
Study: Santa Fe public bank is feasible
The bank public potentially could be utilized by the city, Santa Fe County and Santa Fe Public Schools to broaden funding strategies on a broader scale, and in time could work to combat predatory lending practices by pay-day lenders against individual borrowers.

January 14, 2016
Tampa Bay Times
Capitol Buzz: Five things to watch today in Tallahassee
The Senate Fiscal Policy Committee takes up a bill (SB 626) that cracks down on high-interest, so-called payday loans charged to military personnel.

January 14, 2016
City officials want to empower residents financially with Bank On Columbia
Columbia city officials want to encourage residents to use more traditional banking options instead of check-cashing stores and title loan and payday loan establishments.

January 14, 2016
Report finds trademarks of millennials are high debt, low savings, zero financial literacy
Despite being labeled as the “most educated generation” close to half (42 percent) of millennials are turning
to pawn shops, payday loans, auto title loans and other questionable financial services.

January 13, 2016
When it comes to debt collectors, know your rights
The Federal Trade Commission recently smacked down four debt-collection outfits and their affiliates that the agency said engaged in abusive practices.

January 13, 2016
Daily Kos
Hillary News & Views 1.13: Standing with Obama, More Endorsements, and “Inevitability”
President Obama has taken crucial steps to protect working families from abusive financial practices from predatory payday lending to shady overdraft practices and Hillary will fight to defend and build on the President’s efforts.

January 12, 2016
KEYC Mankato
UNITE HERE: 32 Community Organizations Call on Lone Star Funds to Stop Predatory Payday Lending
UNITE HERE announced that 32 consumer advocacy and fair lending organizations are calling on Lone Star
Funds to end predatory payday lending.
Reprint: Businesswire

January 12, 2016
The Denver Post Online
Bell Policy Center spells out progressive legislative agenda
The Bell Policy Center put out a template for legislators to consider and the agenda included rolling back anti-discrimination protections and any efforts to roll back payday lending reforms or to unnecessarily increase interest rates on consumer loans.

January 12, 2016
Longview News-Journal
Longview council eyes restrictions on payday lending
Longview City Council members are scheduled to discuss an ordinance that would provide parameters for “credit access businesses” such as title and payday lending outlets.

January 12, 2016
The White House
Back to Work: What Comes After the President’s Final State of the Union Address
Created the Consumer Financial Protection Bureau, a consumer watchdog whose sole job is looking out for consumers by protecting them from deceptive and unfair practices by mortgage
lenders, payday lenders, and debt collectors.

January 11, 2016
The Fresno Bee Online
Assembly hopefuls clash over contributions from payday lenders
Clint Olivier calls out Joaquin Arambula on Twitter for contributions from controversial industry and it turns out Olivier accepted $1,000 payday lender contributions in March 2010, February 2014. Arambula and Olivier battling to replace Henry T. Perea in 31st Assembly District.

January 11, 2016
The New York Times Online
‘I Am Drowning.’ The Voices of People With Medical Debt
15% insured and 12% uninsured people told pollsters that they borrowed money from payday lenders to cover medical expenses.

January 11, 2016
The News & Observer Online
Advocates push for the US Postal Service to offer basic banking
There’s a new push for the U.S. Postal Service to deliver basic banking services again and the advocates say postal banks could provide cash-strapped consumers with an affordable alternative to payday, auto-title and other short-term loans that have been criticized for high fees.

January 11, 2016
The Orange County Register Online
O.C. Watchdog: You can now get online loans within minutes, but at what cost?
Borrowers have dug themselves too deeply into debt by taking on a string of online loans to repay previous ones – similar to the vicious cycle that victims of payday lenders experience.

January 11, 2016
Richmond Times-Dispatch
McAuliffe to seek new restrictions on predatory lending
Gov. Terry McAuliffe will seek to impose new caps on the rates and fees charged to consumers through payday loans and car-title loans, the governor said Monday during a radio appearance days before the General Assembly session.
Reprint: Roanoke Times Online

January 8, 2016
Credit Union Times
8 Credit Union Communication Trends for 2016
People who are not financially literate are more likely to use high-cost borrowing options such as payday loans and check cashing centers, get in trouble with credit cards, and/or experience a foreclosure or bankruptcy. Credit unions can play a vital link in the financial health of a community by promoting financial education and low-cost lending options.