Payday Reform News: September 24-30


September 28, New Brunswick Today: Federal Agency Wants Comments From Public on Payday Loan Rules
The article states that the CFPB is accepting comments for payday lending reform, and provides details about the proposal.

Partner Blogs & Press Releases

Allied Progress: CFPB Must Closely Scrutinize Comments Opposing Proposed Payday Lending Rule

Stop the Debt Trap: Stop the Debt Trap: Sen. Elizabeth Warren, Community Activists, Faith Leaders Address Moral Imperative to Rein In Payday

Stop the Debt Trap: More Than 100 House Members Send Letter Urging Strong CFPB Payday Rule Lenders

Friend Dog Studios: Payday Loans!

Top Stories

September 30, St. Louis American: Consumer Advocate Responds to Ethics Complaint for Trying to Regulate
This op-ed calls on Missourians to tell lobbyists for important local institutions that they can’t represent the area’s interest and simultaneously lobby on behalf of the payday lending industry that drains the community of wealth.

September 29, Missoulian: End Payday Loan Debt Trap
This opinion piece advocates to end the payday loan debt trap, specifically in Montana. The author commends the CFPB for their method of ensuring affordable loans, rather than implementing a nationwide rate cap.

September 29, Des Moines Register: Second Security: Fight Income Inequality by Creating Better Paying Jobs
This article mentions “putting an end to predatory lending” as a main avenue for reducing poverty and income inequality.

September 29, CU Insight: Prepared Remarks of Richard Cordray Director of the Consumer Financial Protection Bureau
The Corporation for Enterprise Development Assets has prepared their speech for Richard Cordray. The script is provided in this post.

September 29, Counter Punch: How the Payday Loan Industry Is Obstructing Reform
This article explains the payday loan issue in the context of the presidential debate. It also mentions that several comments submitted to the CFPB were duplicated.

September 28, American Banker: House Democrats Push CFPB for Stronger Payday Rule
Over 100 House Democrats wrote a letter to the CFPB to ask for stronger payday loan rules, pushing to address a borrower’s ability to repay when the provision is further reviewed for reform.

September 28, The Hour: Payday Lender Cedes $1.4m in Connecticut
A company in Connecticut is paying back $70,000 to borrowers after it charged them interest rates of over 12%, and will pay an additional 40,000 fine. The Department of Banking will ensure that the borrowers receive their money.

September 28, The Washington Post: Regulators Crack Down on Alphabet-Backed Payday Lender
Google Ventures allegedly invested in Alphabet in its early stages, a company that meets Google’s criteria to be considered a payday lender, despite their recent ban on payday lending advertisements.
More Coverage:
Mofo Re-Enforcement: CFPB and California Announce Enforcement Actions Against Online Lender
Upstart Business Journal: Y Combinator Fintech Alumnus Hit By Big Subprime Lending Fine
Top Tech News: Google-Backed LendUp Fined by Regulators Over Payday Lending Practices
Christian Science Monitor: Payday Loan Alternative LendUp Fined $6.3 Million for Misleading Customers
Crowdfund Insider: CFPB Orders LendUp to Pay-up $3.63 Million in Refunds & Penalties
Mondaq: CFPB and California Announce Enforcement Actions Against Online Lender
LA Times: Google-Backed LendUp Fined By Regulators Over Payday Lending Practices
Politico: Can Washington Control High-Tech Lending?
TechCrunch: “Good Guy” Loan Startup LendUp Pays $6.3M for Overcharging Violations
CU Times: CFPB Fines LendUp FinTech Company $3.6 Million
Bloomberg: Clawbacks and Consumer Loans

September 27, CBS Money Watch: Economic Forces That Can Turn Protests into Riots
Recent riots in Charlotte have further raised discussion for the racial and economic inequality that exists in areas such as Charlotte. This article also mentions that predatory lenders specifically target black consumers and neighborhoods.

September 26, The Huffington Post: Hundreds of Suspiciously Similar Letters Praise the Payday Loan Industry Ahead of Crackdown
This article reports that many of the sentences included in the comments to the CFPB were repeated several times.
More Coverage:
Morning Consult: Group Alleges Cut-and Paste Job in CFPB Comments Favorable to Payday Loans

September 26, SDPB Radio World Café: Dakota Midday: A Voice for Initiated Measure 21
This is a short clip of two Sioux Falls residents, Steve Hildebrand and Steve Hickey, who are advocating for reform in the payday lending industry. They discuss both Initiated Measure 21 and Constitutional Amendment U.

September 26, NWI Times: Why It Matters: Wall Street Regulation
This article discusses the importance of the presidential candidates’ views on the Dodd-Frank law and whether or not it should be reformed. The author mentions payday lending as a main issue that would be affected by changes to this law.

September 26, Major Title Loan Lender TMX Finance to Pay $9M for Misleading Customers
The CFPB is fining TMX Finance $9 million for allegedly falsely advertising their services to customers.

September 25, Banking Exchange: CFPB Sues Car Title Lenders
The CFPB is suing five different car title lending in Arizona because they did not properly advertise their APRs online.

September 24, Star Tribune: Payday Lending Alternatives Continue To Grow
This article briefly describes the payday lending industry and how certain banks, religious organizations and start-ups around the country are offering similar services in a non-predatory manner.