NewsBreak Original

Four lenders operated by single tribe forced to cancel loans, pay fines. A class of consumers has asked a Virginia federal judge to approve a $500 million settlement with a Native American tribe (Habematolel Pomo of Upper Lake) in a lawsuit over short-term loans charging interest rates as high as 950%. The rates charged violated state rate caps in states where the consumers reside.

The Mayor of Laurel, Mississippi, is trying to combat large fees and high interest rates in the payday loan industry. According to Mayor Johnny Magee, payday lenders promised his father quick and cheap cash, but the loans came with triple-digit interest rates and exorbitant fees. And because some Mississippians are unable to obtain loans from traditional banks, the mayor claims they are being financially harmed by payday lenders.

Consumer Financial Protection Bureau exposes widespread industry practice. A report from the Consumer Financial Protection Bureau (CFPB) reveals that payday lenders engage in deceptive tactics in order to trap borrowers in a cycle of costly reborrowing.

Gov. signs bill lowering max rate on small loans from 175% to 36%. New Mexico Gov. Michelle Lujan Grisham signed legislation this week that caps interest rates on small, short-term loans at 36%.

Alternative short-term loans are available at rates at or under 36%. A survey conducted by the Woodstock Institute with partners New America Chicago and the Chicago Urban League shows that payday loan rate caps are having a positive impact on consumers and communities.

Online lender used tribal-owned companies to evade state interest rate caps. Virginia consumers who borrowed from online payday lender Think Finance could soon see cash refunds as a result of a proposed settlement in a class action lawsuit. Details from the case suggest Think Finance ran loans through three tribal lenders in an attempt to evade state interest rate caps and charge triple-digit interest rates on payday loans.

Consumer groups issue report calling out TAB Bank and EasyPay over predatory practices. Consumer advocates are calling out EasyPay Finance and Utah-based TAB Bank for their roles in predatory loans for financing puppies. These loans can carry rates up to 189%. Consumer and animal welfare advocates joined together to issue a report on the practices of EasyPay and their bank partner TAB Bank.

FinWise Bank partnered with lender charging 149% interest on loans. The District of Columbia yesterday announced a settlement with online lender Elevate that will refund millions of dollars to consumers. The agreement was reached as a result of Elevate violating interest rate caps in DC — the maximum rate for a loan there is 24%.

Payday lender was charging 99%-251% interest on loans. Advocates at the National Consumer Law Center applaud District of Columbia Attorney General Karl Racine’s announcement today that DC has reached a settlement with predatory rent-a-bank lender Elevate that requires it to abide by the District’s interest rate limits and to provide over $4 million in relief to wronged consumers.

OppFi seeks to get around state law designed to protect consumers. The Chicago Sun-Timesreports that online lender OppFi engaged in a shadow lobbying campaign to overturn Illinois’ new Predatory Loan Prevention Act (PLPA) which caps interest rates on payday loans at 36%.

Consumer groups call on FDIC to tackle "rent-a-bank" schemes. The Consumer Federation of America (CFA) was joined by more than a dozen other consumer advocacy groups in calling on the Federal Deposit Insurance Corporation (FDIC) to take action against predatory lending.

Woodstock Institute Offers Analysis on Illinois Predatory Lending Law. Is it possible to offer credit-challenged consumers access to short-term credit without excessive interest rates? An Illinois consumer group says data from its state shows the answer is YES.

Tribal Lender Bright Lending Violates Usury Laws, Complaint Alleges. A case filed in federal court in New Jersey alleges that tribal lender Bright Lending is engaged in usury and fraud by charging up to 700% for short-term loans.

Woodstock Institute Highlights Benefits of Predatory Loan Prevention Act. The Woodstock Institute sent an email highlighting the benefits of a new law in Illinois — the Predatory Loan Prevention Act.