Links in “Payday Lending/Money Services Businesses”

The chair of the Democratic National Committee is reportedly supporting a bill that would curb the authority of the CFPB to regulate payday loans. [3/11/16]

In its Spring 2015 rule-making agenda, the CFPB estimated that its proposed payday lending rule would be issued "later in 2015." In its Fall 2015 rule-making agenda, that date was pushed back to February 2016. Industry watchers are now placing current estimates at later this spring. [3/9/16]

In an appearance before a House Subcommittee, the Acting Deputy Director reiterated CFPB's concerns regarding payday lending. [2/16/16]

When questioned on Thursday about the impact on Payday Alternative Loans (PAL) from CFPB's new proposal, acting bureau Deputy Direct David Silberman stated that PAL's should be exempt. [2/12/16]

Two payday lenders have agreed to pay the FTC $4.4 million and to waive $68 million in loan fees to settle claims that they illegally charged inflated and undisclosed fees to consumers. In one case, the lender advertised that a $300 loan would only cost $290 to repay, when in fact borrowers paid $975. The payday lenders were also cited for Reg. Z violations for failing to accurately disclose the APR and other loan terms. [1/7/16]

Court rules that CFPB is not "federalizing" state law, nor is it trying to establish a federal usury limit, as prohibited by the Consumer Financial Protection Act. [1/6/16]

The Federal Trade Commission charged two payday lenders in April of 2012, Red Cedar Services Inc. and SFS Inc, alleging that the lenders misrepresented how much loans would cost consumers, and failed to accurately disclose the annual percentage rate of other loan terms. Each company has paid $2.2 million to settle these charges, and have collectively waived $68 million in fees to consumers which were not collected as a result of these violations of the FTC Act and TILA. [1/6/16]

A voter initiative capping interest rates at 36% has qualified for South Dakota's ballot. Payday lenders complain it will put them out of business. [1/4/16]

Illegal visits to consumers at their homes and workplaces, empty threats of legal action, lies about consumers' rights, and unlawful withdrawals from bank accounts exposing consumers to bank fees. Sounds like a recipe for a $10 million penalty for EZCORP of Texas, which operates through 500 storefront locations in 15 states. [12/17/15]

New York Fed publishes a report finding complaints about payday lenders charging excessive fees or targeting minorities do not hold up to scrutiny. It also cites reports that rates charged by payday lenders, when risk-adjusted, are comparable to other financial institutions. [12/4/15]