Payday loans represent only one part of a high-cost lending industry that targets lower income consumers, trapping many in deep debt. When regulators and lawmakers try to crack down, lenders tweak their products to get around the law.
In the latest sign that the Consumer Financial Protection Bureau is pulling back from aggressive enforcement, it dropped an investigation triggered by a 2013 ProPublica story about a lender that charges triple-digit interest rates.
New rules put forward by the Consumer Financial Protection Bureau would have a major impact on the high-cost loan industry. But if history is any guide, lenders will quickly find some loopholes.
Acknowledging that a previous law did not go far enough, Defense Department proposes new rules to protect service members from high-cost lenders.
Despite a ban on high-interest car title loans, the nation’s largest title lender has opened 26 Instaloan stores in Florida, offering a refashioned version of the loans that effectively charge the same sky-high rates the law was designed to stop.
Acknowledging that a previous law did not go far enough, Defense Department said it needs to expand rules to protect service members from high-cost lenders.
The investigation follows a ProPublica story that detailed the company’s lending practices.
High-cost lenders exploit laws tipped in their favor to sue tens of thousands of Americans every year. The result: A $1,000 loan grows to $40,000.
TitleMax, one of the fastest growing high-cost lenders in the country, has found a clever way around laws passed by several Texas cities: offer an initial loan at zero percent interest.
Washington State passed a payday loan reform bill that merely limits the number of loans a person can take in a year. Here’s what happened.
In state after state that has tried to ban payday and similar loans, the industry has found ways to continue to peddle them.
Last year, activists in Missouri tried to limit what high-cost lenders can charge. The ensuing fight exposed something that rarely comes into view so vividly: the high-cost lending industry’s ferocious efforts to stay legal and stay in business.
Citing our investigation, Sen. Ron Wyden asked a top official from the Consumer Protection Financial Bureau about what can be done to address abuses by installment lenders.
A federal law is supposed to protect service members from predatory lending. But lenders exploit loopholes, trapping military personnel in high-interest debt.
Many people know the dangers of payday loans. But "installment loans" also have sky-high rates and work by getting borrowers — usually poor — to renew over and over. We take you inside one of the biggest installment lenders, billion-dollar World Finance.