# Payday loans
Consumer Group Applauds Minnesota's 36% Interest Rate Cap on Payday Loans
Center for Responsible Lending calls on other states to follow suit. A consumer advocacy group that focuses on fairness in the financial marketplace is applauding a new Minnesota law that caps annual interest rates on payday loans at 36%.
Payday Lender Accused of Fraud for Hiding $40 Million
Owners of Integrity Advance attempted to hide funds to avoid paying financial penalties. The Consumer Financial Protection Bureau (CFPB) is suing Melissa and James Carnes for their role in hiding as much as $40 million in order to avoid paying fees assessed against their payday lending business, Integrity Advance.
Consumer Group Issues Warning on Earned Wage Access Products
Center for Responsible Lending warns of possible debt trap with certain employer-based loan products. A consumer advocacy group is warning that a growing lending model - earned wage access - could end up trapping employees in a cycle of debt.
Payday Loans: Weighing the Benefits and Risks
Payday loans have become a popular option for individuals who need quick cash to cover unexpected expenses. While they can be helpful in certain situations, there are also some drawbacks to consider. In this article, we'll explore the pros and cons of a payday loan to help you decide if it's the right option for you.
Here Come the Sports Loan Sharks
The rules that allowed college athletes to monetize their name, image, and likeness were never going to be enough for some people. The NIL rules would always be pushed, extended, and reimagined - they were just stage one of a much more complicated scenario involving ways for athletes to get net new money.
Chicago Religious Leaders Condemn Predatory Holiday Loans
Group calls for rate cap on pawn broker loans to protect consumers. In the midst of the holiday shopping season, political and religious leaders in Chicago joined together to lament the widespread use of triple-digit interest rate loans to finance holiday spending. The group called such rates predatory and called on policymakers to enact a rate cap on pawn broker loans.
Consumer Advocates Tout Alternatives to High Cost Credit
Groups issue report promoting availability of reasonably priced short-term credit options. Consumer advocates at Consumer Federation of America (CFA) joined with Illinois-based Woodstock Institute to highlight a new report on alternatives to high-cost credit.
The Pros and Cons of Payday Loans
Payday loans are short-term loans. They have high interest rates, make it hard for people with good credit to qualify for, and increase the risk of bankruptcy. But there are some ways to keep yourself from falling victim to payday loans. In this article, we'll look at the pros and cons of payday loans.
Illinois Consumers Express Support for Law Limiting Payday Loans
Study shows consumers continue to access credit after 36% rate cap on short-term loans. The Woodstock Institute released results of statewide polling in Illinois that indicates consumers in the state support the Predatory Loan Prevention Act. The law, which went into effect last year, caps interest rates on short-term loans (like payday loans) at 36%.
What Is a Direct Payday Loan?
It’s not uncommon to find yourself in a tough situation longing for financial assistance. Not everyone has the luxury or ability to borrow funds from family or friends. So what are you supposed to do when you need to borrow money? There are many different types of loans available – and many different loan features. Payday loans are one option for those who need emergency funds. Alternative payday loans are another – an option that may be able to provide you with fast funding, along with more flexibility and time for repayment.
ACE Cash Express Faces Lawsuit for Defrauding Customers
Consumer Bureau alleges "deception and misdirection," seeks money damages. Payday lender ACE Cash Express is facing a lawsuit from the Consumer Financial Protection Bureau (CFPB) for alleged misdeeds including concealing free repayment plans and unlawfully debiting funds from customer bank accounts. The CFPB alleges that the practices generated at least $240 million in additional fees for ACE while keeping customers in a cycle of debt.
Consumers Reach $500 Million Settlement with Tribal Lenders Charging 950% Interest
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.
Payday Loans Are Financially Hurting Mississippi Residents, Says Mayor
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.
Report: Payday Lenders use Deceptive Tactics to Trap Borrowers in Debt Cycle
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.
Capped: Payday Loan Rates in New Mexico Lowered to 36% Max
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%.
Illinois Survey Shows Payday Loan Rate Caps Help Consumers
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.
Think Finance Facing $44.5 Million Judgment in "Rent-a-Tribe" Scheme
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.
Utah Bank Named as Enabler of Predatory Puppy 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.
Utah Bank Named in DC Settlement Against Payday Lender
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%.
Online Lender Elevate Pays $4 Million Settlement for Violating DC Law
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.