News Topic: Fringe Banking

I was pleased to see today’s New York Times editorial entitled “ A Rate Cap for All Consumer Loans .”  It created a very public description of an industry indiscretion involving loaning money to the military at over 36%. ... Read full article

Over the last couple years, The Pew Charitable Trusts has put together a useful series of reports regarding payday lending in the United States. The fourth installment was released on October 2. ... Read full article

 A little bit of payday loan news for our readers. First, the New Mexico Supreme Court has h eld that 1100% high cost installment loans (the payday loan substitute in states where payday loans are illegal) are unconscionable. ... Read full article

At today's House Judiciary Committee hearing on Operation Choke Point it seemed that  Choke Point 's critics are conflating a fairly narrow DOJ civil investigation with separate general guidance given by prudential regulators.  In particular, ... Read full article

Note from Katie Porter: This guest post is from Jennifer Song, senior staff attorney at the California Monitor Program. Jennifer pitched in and attended this workshop, and I hope Credit Slips readers will enjoy hearing about her experiences in a short ... Read full article

Received the automated call to my cell phone yesterday morning, whereupon my phone recorded a 45 second message. Not only am I approved for a payday loan in the amount of up to $1,500, I apparently previously applied for a payday loan, and given that ... Read full article

 To question number one, it looks that way. According to Kim Chapman and Carter Dougherty at Bloomberg, as well as other news outlets, Director Richard Cordray has announced his intention to move forward with regulations aimed at lenders that make small ... Read full article

The CFPB just settled an enormous enforcement action against payday lender Cash America. Under the settlement, Cash America will pay $5 million in penalties and $14 million in refunds to overcharged customers. ... Read full article

Just as I was getting ready to roll out an article agreeing with Creola Johnson and explaining why Congress should implement a 36% cap, like the Military Lending Act , for all of us, the Dealbook rolled out this story .  A ... Read full article

Carter Dougherty added last week to the many recent articles ( here and here ) on regulators who are cracking down on internet lending, both state and federal. First, the Justice Depart ... Read full article

Given the many ways in which payday lenders have been able to transform themselves   into title lenders and installment lenders, and to otherwise avoid state law,  l try not to get too optimistic that high-cost lending practices  will be curbed. ... Read full article

Readers might recall that back in November, I blogged about a case in which the unconscionability doctrine was used to invalidate one lender’s entire book of payday and installment loans. The post described how the court found that FastBucks employees ... Read full article

Consumer financial education , disclosure , and defaults all dispensed with in my prior posts, shall we move on to “substantive” regulation, dare I even say “usury”? ... Read full article

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Thanks for having me back at Credit Slips! This week I’ll be blogging about two forms of credit that are increasingly popular: auto title lending and pawnshops. ... Read full article

A little something more to chew on while you are chewing off your fingernails over tonight’s election news. As reported on Turtle Talk this morning, Oregon and Washington are none too pleased about tribal payday lenders making loans to citizens of their ... Read full article

A little something to chew on while you are chewing off your fingernails over tonight’s election news. The New Mexico Attorney General’s office has sued Fastbucks for providing unconscionable loans to New Mexico citizens, both under the common law ... Read full article