Payday Reform in the News March 10


Linda Frame: WV sees through financial lobbyists; Manchin should too (Gazette) 
March 9, Charleston Gazette-Mail (WV)
A project manager at WV Center on Budget and Policy asks Senator Manchin not to listen to lobbyists who want to weaken the CFPB.

Top Stories

House panel endorses storefront loan reforms
March 10, Albuquerque Journal
Legislation has been introduced in New Mexico that would effectively eliminate payday loans by definition, ban small loans that have terms less than 120 days and require certain reporting to state regulators. It also caps interest rates at 175 percent. (The 36% cap advocates had pushed for has been killed.)
            More coverage: KUNM (NM) House Approves Ethics Commission Amendment, Governor Vetoes More Sick Days For Teachers

How fintechs are using AI to transform payday lending
March 10, Information Management
Fintech startups looking to disrupt payday lending claim they can use artificial intelligence to make loans with rates as low as 6% and with default rates of 7% or less by finding patterns of creditworthiness from the borrower’s phone.

Bill targets high payday lending rates
March 9, ABC6 (OH)
The bill sponsored by Representatives Kyle Koehler (R-Springfield) and Mike Ashford (D-Toledo) would limit monthly payments to five percent of someone's gross monthly income. It would also cap the yearly interest rate to 28 percent. Some payday lenders can charge up to 596 percent.
            More coverage:
WKYC:  Ohio lawmakers introduce payday lending reforms Payday loan interest rates would be capped under Ohio bill Why state lawmakers are trying to reform payday loans (video)
Loveland Magazine: New legislation spells out reforms that would make payday lending fair and affordable in Ohio

Bill Proposes Cap To Payday Loans Interest Rates
March 9, (MO)
A 36% cap on payday loans has been introduced in Missouri. The organization Faith Voices of Southwest Missouri is supporting the bill.

Prosperity Policy: Whom do lawmakers represent?
March 8, The Journal Record
David Blatt is executive director of the Oklahoma Policy Institute argues against a bill in the OK House that would allow consumer loans at 200% interest.

House committee OKs changes to some small loans
March 8, Montgomery Advertiser (AL)
A bill introduced on installment loans would increase the amount and the fees allowed. The Alliance for Responsible Lending, which has worked on trying to cap payday and title loan interest rates, says the APR for a three-month, $500 loan taken out under the act would be just over 114 percent, with a 12-month loan at just under 80 percent for the same amount. For a $1,500 loan, the APR would be 89 percent for a three-month loan, and 52.72 percent for a 12-month loan.

Payday lending amendment would cap interest at 36%
March 7, Montgomery Advertiser (AL)
A bi-partisan group of legislators and payday reform advocacy groups gathered at the Alabama State House Tuesday to introduce a bill that would allow Alabamians to vote on a constitutional amendment that would cap payday loan interest rates at 36 percent. Currently, the average rate for so-called “predatory loans” is 300 percent, with a maximum possible rate of 456 percent.
            More coverage:
WTVM: Bipartisan support emerges for AL payday lending reform
Lagniappe Weekley (AL) Political pros and capital cons

Efforts to rein in storefront lending in danger
March 7, NM Politics
Article discusses debate over interest rate caps in NM legislature, quoting advocates from other states.

LTE: Hollingsworth and prepaid card resolution – Retweet (with letter)
March 9, Bloomington Herald Times

CFPB Proposes 6-Month Delay on Prepaid Card Rule
March 10, Bloomberg BNA