The Consumer Financial Protection Bureau (CFPB) refers to a finalized new rule as “common sense” protections that are designed to stop “payday debt traps” from wiping out a consumer’s bank…
Offering a small incentive to prepaid card users to put some of their money into a savings “wallet” doubled uptake of the wallet.
These tough new rules would cover payday loans, auto title loans, deposit advance products, and certain high-cost installment loans.
The U.S. Consumer Financial Protection Bureau said it is mulling restrictions on lenders that would prevent them from repeatedly collecting payment from customers’ bank accounts without thoroughly verifying the ability to repay.
Using celebrities to endorse lending products — prepaid cards, reverse mortgages and payday loans, to name a few — is a popular method for marketers to gain the trust of potential borrowers.
Many consumers stopped making payments to the original lenders after having paid hundreds of dollars in fees.
U.S. regulators don’t appear to be letting their guard down when it comes to payday lenders and their notorious fees. The Federal Trade Commission said Friday it has reached a $306 million settlement with two online lenders, AMG Services and MNE Services.
Now, a new report from the nonprofit Americans for Financial Reform finds that payday, car title and installment lenders have spent more than $13 million in campaign contributions and lobbying during the 2014 election cycle.
Over one eleven-month period between 2012 and 2013, the scheme’s operators issued $28 million in payday “loans” to consumers, and, in return, extracted more than $46.5 million from their bank accounts, the FTC alleged.
They’re awful and impossible to regulate. That’s the gist of John Oliver’s detailed, angry and spot-on take on the payday loan industry on HBO’s Last Week Tonight.