NewsBreak Original

Legislature fails to support effort to cap loan rates that now exceed 240%. A coalition of consumer advocacy groups expressed dismay today as legislative efforts to cap pawn broker loan rates at 36% were stymied by the efforts of industry lobbyists.

Complaint alleges hidden loan costs, aggressive debt collection. The Consumer Financial Protection Bureau (CFPB) and the New York Attorney General's Office today announced the filing of a lawsuit against auto lender Credit Acceptance for the company's practices that allegedly created financial distress, car repossession, and debt collection actions for borrowers. The complaint seeks relief for impacted consumers as well as a civil money penalty to discourage Credit Acceptance from engaging in these practices in the future.

A good Samaritan read a USA Today article about a disabled man that was unable to pay off his predatory car title loans and paid off his loans in a gesture of kindness. One disabled man was just trying to get his car fixed, not fully understanding how car title loans prey on people with astronomical interest rates. He didn’t immediately realize that once the clock started ticking, the interest compounded faster than he could pay back.

Online lender charged rates in excess of 36%, trapped consumers in memberships. The Consumer Financial Protection Bureau (CFPB) announced it is suing online lender MoneyLion for charging illegal interest rates in excess of 36% to military service members in violation of the Military Lending Act. The CFPB also alleges MoneyLion trapped customers in membership programs and refused to cancel memberships even when asked.

Consumer groups release report showing car repair loans with interest rates as high as 189%. A coalition of consumer advocacy groups released a report showing the prevalence of high-interest auto repair loans and noted the impacts often fall on members of the military and their families.

Loans for auto repairs carry rates as high as 189%. A coalition of consumer advocacy groups has sent letters to top auto repair chains across the nation calling on them to stop offering financing for repairs through EasyPay Finance and TAB Bank, noting the loans can carry interest rates as high as 189%.

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.

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.