consumer loan reform

Sharks don’t like shark cages; Online lending industry resists regulation

...Brent Adams, a lobbyist for the Woodstock Institute in Chicago that does research on fair lending practices, said that he’s not surprised by opposition to the bill.

“We have observed that some of these alternative lenders offer loans on terms that we would consider predatory,” Adams said. “Whenever you take a financial system and seek to implement major reforms, you’re going to get some objections."

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More welcome protections for overdraft loans, but not enough for bank payday loans

Both overdraft loans and bank payday loans are credit products offered by banks, but overdraft loans operate within more clearly proscribed limits than do bank payday loans. Consumers can’t simply walk into a bank branch and request an overdraft loan; overdraft loans happen automatically made when account holders make a transaction that pushes their balance below zero.

Debt protection products offer few benefits at high cost, says new report

First off, what are debt protection and credit insurance products? Both types of product have a similar function in that they can cancel or suspend all or part of a consumer’s debt in the case of a life-changing event, such as death, involuntary unemployment, disability, or birth of a child. The products are regulated differently, however. Since credit insurance is an insurance product, it is regulated by the states. Debt protection products are bank products regulated by federal bank regulators.

Payday Lenders lose first round in court

Written by Monsignor John Egan Campaign for Payday Loan Reform on March 21, 2011 - 9:43pm

Dory Rand, President of Woodstock Institute, paraphrased the court's ruling: "The plaintiff did not show irreparable injury would result from surrender of a PLRA or CILA license and there was no showing of a likelihood of success on the merits of ILC's legal claims. The legislature enacted the law to protect consumers from unscrupulous lenders, although not all lenders covered by the statute are presumed to be unscrupulous. For the safety and welfare of the public, the market may not operate unimpeded.

Payday lenders challenge provisions of landmark consumer protection law set to take effect March 21

Why are these new protections so necessary? What are small consumer loan borrowers up against until this law takes effect? Our research documenting the state of payday and consumer installment lending in Illinois discovered that:

One, two, three banks are out of the old RAL game: Regulator orders HSBC to stop financing high-cost tax time loans

Refund anticipation loans are loans arranged by tax preparers for the estimated amount of a borrower’s income tax refund. The borrower pays a high fee to receive the money within one to three days of filing his or her tax return, instead of waiting the ten days it would usually take to receive their refund from the IRS via direct deposit. The loan is repaid when the tax preparer receives the borrower’s refund from the IRS.

Don’t let the Payday Grinch steal your holidays

Like the Grinch of Whoville fame, the Payday Grinch can put a real damper on the holiday season. Instead of stealing gifts and holiday ham, the Payday Grinch offers short-term financial products with high fees that can sap working families’ assets and threaten their financial security. Families are struggling to make ends meet, between the weak economy and the pressures of holiday shopping, so the temptation to visit the Payday Grinch can be particularly strong.

Why we must expand CRA: When banks listen to the public, both sides win

Written by Suniya Farooqui, Tom Feltner and Katie Buitrago on October 5, 2010 - 3:31pm


The proposal, HR 6334, requires regulators to consider public comments in their ongoing community reinvestment evaluations.  The codification of the public's response and the repercussions of those responses increase the likelihood that the public’s needs are being met by financial institutions.


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