Consumer Protection Agency Seeks Limits on Payday Lenders

[boutons_deux]

Obvious why the Repugs want to kill CFPB (along with Dep of Education and IRS).

Consumer Protection Agency Seeks Limits on Payday Lenders

In the world of consumer finance, they are chameleons: payday lenders that alter their practices and shift their products ever so slightly to work around state laws aimed at stamping out short-term loans that can come with interest rates exceeding 300 percent.

Such maneuvers by the roughly $46 billion payday loan industry, state regulators say, have frustrated their efforts to protect consumers.

Now, for the first time, a federal regulator is entering the fray, drafting regulations that could sharply reduce the number of unaffordable loans that lenders can make.

The Consumer Financial Protection Bureau (http://topics.nytimes.com/top/reference/timestopics/organizations/c/consumer_financial_protection_bureau/index.html?inline=nyt-org), created after the 2008 financial crisis, will soon release the first draft of federal regulations to govern a wide range of short-term loans.

The rules are expected to address expensive credit backed by car titles and some installment loans that stretch longer than the traditional two-week payday loan, according to industry lawyers, consumer groups and government authorities briefed on the discussions who all spoke on the condition of anonymity because the deliberations are private. Certain installment loans, for example, with interest rates that exceed 36 percent, the people said, will most likely be covered by the rules.

Behind that decision, the people said, is a stark acknowledgment of just how successfully lenders have adapted to keep offering high-cost products despite state laws meant to rein in the loans.

The federal regulations taking shape will most likely set off a new round of lobbying from payday lenders.

For now, with the prospect of federal rules on the horizon, some payday lenders have begun aggressively lobbying a number of states, including, Kentucky, Washington and New Mexico, tapping a former governor as a lobbyist in one battle, to weaken state laws restricting expensive loans or to quash new caps before they gain ground.

The lenders contend that if the federal rules are too burdensome, extending loans would become simply too expensive, choking off a form of credit that, while costly, is the only option for millions of Americans.

http://mobile.nytimes.com/blogs/dealbook/2015/02/08/consumer-protection-agency-seeks-limits-on-payday-lenders/

"choking off a form of credit that, while costly, is the only option for millions of Americans."

:lol as if payday lenders gave a flying fuck about "millions of Americans" :lol

what would be choked off are the payday lenders' profits for usury.

There was a move a few weeks ago to protect US military and vets from paydays lenders. My question was, why protection for only those two groups?

[CosmicCowboy]

Loans require a willing borrower and a willing lender. It is not like these lenders are going out and forcing people to borrow. The borrowers are going to payday lenders and asking to borrow money because they need money NOW and can't go to a bank because they aren't a good credit risk. You can quibble about the rates they charge for the service but not the fact that the borrowers wanted the loans they couldn't get anywhere else.

The historical option to payday lenders were loan sharks that broke your knees if you didn't pay.

[boutons_deux]

"It is not like these lenders are going out and forcing people to borrow."

it's more like the lenders sucker, prey upon the desperate borrowers by hiding how fucking disastrous sums that payday loans can explode to.

And as with the mortgage lenders, the payday lenders know damn well a profitable number of borrowers simply can't pay back on time.

But no surprise, you right-wingers always absolve the corporations and criminalize the consumers, as if both parties had equal power and info in the deal.

[Wild Cobra]

What if you were desperate for $200 to get their car fixed. Without their car, you lose your job?

Take away the high rates loaners can get for high risk, and they will go bankrupt. Take away the incentive for them to loan to desperate people, and the desperate people get even more desperate when they lose their jobs.

[boutons_deux]

What if you were desperate for $200 to get their car fixed. Without their car, you lose your job?

Take away the high rates loaners can get for high risk, and they will go bankrupt. Take away the incentive for them to loan to desperate people, and the desperate people get even more desperate when they lose their jobs.

how about raising the minimum wage to a livable $15 or $20/hour, and raise the OT threshold to $75K, so 10Ms of people would be lifted out of poverty and off public assistance?

Fuck no, you right wingers and "God wants us to be rich" Christians want to punish the poor for being poor, blame them for causing all their own problems.

[CosmicCowboy]

"It is not like these lenders are going out and forcing people to borrow."

it's more like the lenders sucker, prey upon the desperate borrowers by hiding how fucking disastrous sums that payday loans can explode to.

And as with the mortgage lenders, the payday lenders know damn well a profitable number of borrowers simply can't pay back on time.

But no surprise, you right-wingers always absolve the corporations and criminalize the consumers, as if both parties had equal power and info in the deal.







Boo, I'm neither defending or attacking. They loan in a high risk environment as the lender of last resort for people with bad credit. They charge high interest rates. It's a numbers game. They are going to have a high default/skip rate so they charge a high individual rate to cover the losses. It is what it is.

If you don't like it run a craigslist ad that you will loan money to people with bad credit and only charge them prime plus one and see how long you last.

[Winehole23]

payday lenders in Texas prosecute delinquent debtors for theft:


Consumer advocates say district attorneys and courts are—intentionally or not—acting as debt collection agencies for predatory lenders. A letter from a DA threatening steep fines, arrest and jail time can be a highly persuasive tool.

http://www.texasobserver.org/report-texas-payday-lenders-prosecutors-team-criminally-pursue-borrowers/

[Winehole23]

thematically related:

http://www.spurstalk.com/forums/showthread.php?t=204640

[CosmicCowboy]

payday lenders in Texas for prosecute delinquent debtors for theft:



http://www.texasobserver.org/report-texas-payday-lenders-prosecutors-team-criminally-pursue-borrowers/

Correct me if I'm wrong but only if they pay with a hot check, correct? How is this different than writing a hot check to HEB?

[Winehole23]

Texas law appears to prohibit it.

the article also describes payday and title companies using the threat of prosecution to elicit payment. it's my understanding that is illegal too.

[CosmicCowboy]

Texas law appears to prohibit it.

the article also describes payday and title companies using the threat of prosecution to elicit payment. it's my understanding that is illegal too.

Again, my understanding is if they write a hot check the prosecution is for the hot check. That is illegal no matter who it is written to.

[CosmicCowboy]

The moral of the story is, if you owe a payday loan company money tell them to fuck off and don't write them a hot check. The DA will not prosecute over an unpaid civil loan. They will prosecute over a hot check.

[Winehole23]

that's not the only issue here.

[CosmicCowboy]

that's not the only issue here.

When the DA gets involved it is.

[Winehole23]

CC primly affirms the propriety of using state power to enforce the greed of payday lenders.

smh

[CosmicCowboy]

CC primly affirms the propriety of using state power to enforce the greed of payday lenders.

smh

No I'm not. Every single prosecution was for theft by check. That is writing a hot check. That is illegal no matter who you write it to. Is it greedy when HEB files with the DA on a hot check?

[MultiTroll]

And as with the mortgage lenders, the payday lenders know damn well a profitable number of borrowers simply can't pay back on time.

[MultiTroll]

It's a numbers game. They are going to have a high default/skip rate so they charge a high individual rate to cover the losses. It is what it is.
Isn't every loan they make covered by collateral in the form of either the persons paycheck or car?
So what risk are they taking, other then having to track the persons car down?
Perhaps a few pissed off people trash their car when they know the payday sharks hook up goons are coming.
Phoenix banned these payday 300% snakes and apparantly it's going much better for the consumer.

[CosmicCowboy]

Lets go back to Poor Pitiful Margaret in that tearjerker of an article. Margaret had to have $225 Right away. Poor Pitiful Margaret has shitty credit. There is a company down the street that rents commercial space, hires employees, pays taxes and utilities, etc. Poor Pitiful Margaret With shitty Credit goes to these people desperate for a $225 loan that no one will give her and promises to pay it back in a month. For giving her the $225 they agree to charge her less than $50 for a fee. Poor Pitiful Margaret doesn't pay them back in a month and eventually writes them a hot check. That company is greedy?

[CosmicCowboy]

Funny, and you guys don't blink an eye when Chase charges you a $25 late fee when you are 2 days late paying your $27.48 minimum balance. Calculate the APR interest on THAT.

[CosmicCowboy]

]Isn't every loan they make covered by collateral in the form of either the persons paycheck or car?[/B]
So what risk are they taking, other then having to track the persons car down?
Perhaps a few pissed off people trash their car when they know the payday sharks hook up goons are coming.
Phoenix banned these payday 300% snakes and apparantly it's going much better for the consumer.

The short answer is no.

[MultiTroll]

For giving her the $225 they agree to charge her less than $50 for a fee. That company is greedy?
I thought it said the company made $271 on top of the 225 she owed?
Manager Monty Burns refused to accept a payment plan.
Not like Margaret was trying to skip out.

Ya, i'd say that say that is very greedy.

[CosmicCowboy]

as far as Poor Old Pitiful Margaret....at what age is it OK to write hot checks? 60? 65? 70?

Just wondering where you guys draw the line and when it's OK for the rest of us to write hot checks.

[CosmicCowboy]

I thought it said the company made $271 on top of the 225 she owed?
Manager Monty Burns refused to accept a payment plan.
Not like Margaret was trying to skip out.

Ya, i'd say that say that is very greedy.

Then your reading comprehension is very bad. She borrowed $225 and promised to pay back $271 in a month so the fee was less than $50. What Poor Pitiful Margaret and the author of the article conveniently left out of the story is that Poor Pitiful Margaret gave them a hot check as payment so they were not only out the fee but the $225 cash they originally loaned her.

[boutons_deux]

Funny, and you guys don't blink an eye when Chase charges you a $25 late fee when you are 2 days late paying your $27.48 minimum balance. Calculate the APR interest on THAT.

A few years I read that the biggest banks made $37B/year from overdraft charges.

I had one digit wrong in my bank account number paying my CPS bill on line. "Bounced check", $25 charge.

[Wild Cobra]

how about raising the minimum wage to a livable $15 or $20/hour, and raise the OT threshold to $75, so 10Ms of people would be lifted out of poverty and off public assistance?

Fuck no, you right wingers and "God wants us to be rich" Christians want to punish the poor for being poor, blame them for causing all their own problems.
And you libtards think you have all the answers.

I don't mind you guys being blathering idiots. All kingdoms need jesters. I just wish you would stop thinking you know how the government should control us all.

Don't you believe in freedom, personal responsibility, and personal choice?

If you're trying to protect people from high payback rates, then why stop there?

Why not eliminate all gambling.

Why not eliminate all drugs, alcohol, etc.

Just where will your ideals stop?

You're every bit as bad as the religious zealots you despise!

[Wild Cobra]

Boo, I'm neither defending or attacking. They loan in a high risk environment as the lender of last resort for people with bad credit. They charge high interest rates. It's a numbers game. They are going to have a high default/skip rate so they charge a high individual rate to cover the losses. It is what it is.

If you don't like it run a craigslist ad that you will loan money to people with bad credit and only charge them prime plus one and see how long you last.

This is so true.

How about it Shazbot?

How about starting your own leading company to help these people?

[Wild Cobra]

payday lenders in Texas prosecute delinquent debtors for theft:



http://www.texasobserver.org/report-texas-payday-lenders-prosecutors-team-criminally-pursue-borrowers/
It doesn't keep the lenders from going in the red if they don't charge enough for their services.

[boutons_deux]

payday stores are front for capitalists looking for higher returns

Behind 700% Loans, Profits Flow Through Red Rock to Wall Street

Joshua Wrenn needed money to make the January payment for his Jeep Cherokee.

The truck driver and aspiring country singer in Madison, North Carolina, got $800 within minutes from a website he found on his phone. When he called to check his balance a few weeks later, he was told he had electronically signed a contract to pay back $3,920 to a company owned by an American Indian tribe.

“I didn’t ever see a contract, not one time,” said Wrenn, 30. “If I was that stupid, to sign for $3,000 for an $800 loan, I might as well bury myself alive.”

Revenue from American Web Loan flows through the tribe to a firm owned by Mark Curry, according to a presentation his company gave to potential private-equity investors last year. Curry, whose payday-loan websites have been sanctioned by state regulators for the past seven years, is in turn backed by a New York hedge fund, Medley Opportunity Fund II LP.

Chasing big returns, some Wall Street investors have been willing to overlook the legal uncertainty of a business that regulators say is exploiting a loophole to trap poor borrowers in a cycle of debt. Hedge funds, private-equity firms and Silicon Valley venture capitalists are investing in a new generation of Internet companies that lend money at high rates to working people.

http://www.bloomberg.com/news/articles/2014-11-24/payday-loan-fortune-backed-by-medley-found-behind-indian-casino

just another way the 1% to rape, pillage, loot, vampire-suck the "47%".

I read where the average unbanked/underbanked household averages $2K - $3K/year in financial services fees.




7.7 percent (1 in 13) of households in the United States were unbanked in 2013. This proportion represented nearly 9.6 million households.
20.0 percent of U.S. households (24.8 million) were underbanked in 2013, meaning that they had a bank account but also used alternative financial services (AFS) outside of the banking system.
The unbanked rate has varied from 7.6 percent in 2009 to 8.2 percent in 2011 and 7.7 percent in 2013.

The 0.5 percentage point decrease in the unbanked rate between 2011 and 2013 can be explained by differences in the economic conditions and demographic composition of households over this period.
In particular, compared to 2011, households in 2013 had slightly higher levels of employment and income, and were slightly older and better educated. These characteristics are all associated with a higher likelihood of having a bank account.


While relatively small proportions of U.S. households experienced major life events in the past year, households that transitioned in or out of the banking system were more likely to have experienced certain events:

Among households that recently became unbanked, 34.1 percent experienced either a significant income loss or a job loss that they said contributed to the household becoming unbanked.


https://www.fdic.gov/householdsurvey/

[Wild Cobra]

LOL...

Changing the goal post?

Idiot using a phone instead of computer, that normally does not display a whole web page...

Shazbot...

Just how far should we go to protect idiots from themselves?

I'll also bet that isn't the whole story. His payment(s) were probably late.

Regardless, he was a total idiot!

[Wild Cobra]

Payday loans like Wrenn’s -- costly, short-term advances for those with poor credit -- are illegal in North Carolina and about a dozen other states. That’s driving online lenders to Indian reservations, where tribes say they’re not subject to interest-rate regulations.

This is because of the agendas of people like you, forcing the payday lenders in a state out of business!

[Nbadan]

CC primly affirms the propriety of using state power to enforce the greed of payday lenders.

smh

..and that's what it comes down to for CC, debtor prison...Yes, a loan is collateralized by a check, but it's still only a loan...like most bad loans, borrowers should have a chance to pay off their obligation for pennies on the dollar...payday lenders just mad because they don't have the leverage to destroy your credit in the process...

[Wild Cobra]

..and that's what it comes down to for CC, debtor prison...Yes, a loan is collateralized by a check, but it's still only a loan...like most bad loans, borrowers should have a chance to pay off their obligation for pennies on the dollar...payday lenders just mad because they don't have the leverage to destroy your credit in the process...
Do you agree or disagree that it requires a higher interest rate to stay in business when lending to people who are a credit risk?

[Drachen]

Again, my understanding is if they write a hot check the prosecution is for the hot check. That is illegal no matter who it is written to.

The way a payday loan works is they loan you the money, then give them your checking account number and authorization for an electric check on the day you get paid. If the money isn't there, I could see how they could argue that you "wrote" a hot check.

All of that being said, these businesses are a gold mine and I've thought here and there about owning such a place, but unfortunately I would be a terrible owner trying to counsel the out of doing a payday loan. I have a major ethical conflict with it.

[Nbadan]

Do you agree or disagree that it requires a higher interest rate to stay in business when lending to people who are a credit risk?

500-700% yearly interest is predatory and then you still owe the principle...I'm sure some loans are bad, but not to justify that type of usury

[boutons_deux]

What if you were desperate for $200 to get their car fixed. Without their car, you lose your job?

Take away the high rates loaners can get for high risk, and they will go bankrupt. Take away the incentive for them to loan to desperate people, and the desperate people get even more desperate when they lose their jobs.

$46B/year, and without insane usury, no "incentive" :lol

Obviously, wealthy capitalists who own, back these payday criminals KNOW the reward vastly outweighs the risk.

http://www.aboutpayday.com/payday-loan-industry-statistics/

[MultiTroll]

Do you agree or disagree that it requires a higher interest rate to stay in business when lending to people who are a credit risk?
:lol "a higher"

[CosmicCowboy]

So the Spurstalk consensus is these places shouldn't exist and their customers that desperately need short term loans for whatever reason are just shit out of luck. Correct?

[Th'Pusher]

So the Spurstalk consensus is these places shouldn't exist and their customers that desperately need short term loans for whatever reason are just shit out of luck. Correct?

Incorrect. I think the consensus is that they should be more heavily regulated to prevent predatory lending practices.

[unleashbaynes]

So the Spurstalk consensus is these places shouldn't exist and their customers that desperately need short term loans for whatever reason are just shit out of luck. Correct?

How exactly is charging 300% interest on an amount of money that the borrower has no chance of making back in a reasonable amount of time good business? Seems to me that that's just taking advantage of the less intelligent people who are in a tight spot who have nowhere else to turn.

[CosmicCowboy]

Incorrect. I think the consensus is that they should be more heavily regulated to prevent predatory lending practices.

I know I borrow at prime plus one but they would go out of business in short order doing that with the broke ass credit risks they loan to.

Who or what is going to replace them as a lender of last resort?

Another example of government potentially making the problem worse instead of better with their "good intentions". Those people will have nowhere to go. For every deadbeat that whines about not being able to pay it back there are probably 5 that pay it back and appreciate the loan. Unfortunately the deadbeats drive the cost up for everyone.

[boutons_deux]

I know I borrow at prime plus one but they would go out of business in short order doing that with the broke ass credit risks they loan to.

Who or what is going to replace them as a lender of last resort?

Another example of government potentially making the problem worse instead of better with their "good intentions". Those people will have nowhere to go. For every deadbeat that whines about not being able to pay it back there are probably 5 that pay it back and appreciate the loan. Unfortunately the deadbeats drive the cost up for everyone.

As I said above, raise the Federal minimum wage to $15+ and raise the OT threshold to $75K/year. that lifts people out of poverty, off public assistance (taxpayers off the hook), and out of the bloody claws of the payday predators.

[Wild Cobra]

500-700% yearly interest is predatory and then you still owe the principle...I'm sure some loans are bad, but not to justify that type of usury

Sure, what the tribe allowed was excessive. No doubt. But would it have ever happened if regulators allowed lenders in the state?

[boutons_deux]

Sure, what the tribe allowed was excessive. No doubt. But would it have ever happened if regulators allowed lenders in the state?

go look for what happens when payday predators are allowed in a state.

[Wild Cobra]

So the Spurstalk consensus is these places shouldn't exist and their customers that desperately need short term loans for whatever reason are just shit out of luck. Correct?

That would appear to be the response of those on the left isle.

Looks like they want to create even more people dependent on liberal policies!

[Wild Cobra]

Incorrect. I think the consensus is that they should be more heavily regulated to prevent predatory lending practices.

So what is a fair interest rate so these places can stay in the black for the money they lend and never recover?

[Wild Cobra]

How exactly is charging 300% interest on an amount of money that the borrower has no chance of making back in a reasonable amount of time good business? Seems to me that that's just taking advantage of the less intelligent people who are in a tight spot who have nowhere else to turn.
Well, if nobody else will lend to them, what does it mean?

Doesn't it mean they are a high credit risk?

How long do you think these places would stay in business if they charged 26% interest rates?

[Th'Pusher]

I know I borrow at prime plus one but they would go out of business in short order doing that with the broke ass credit risks they loan to.

Who or what is going to replace them as a lender of last resort?

Another example of government potentially making the problem worse instead of better with their "good intentions". Those people will have nowhere to go. For every deadbeat that whines about not being able to pay it back there are probably 5 that pay it back and appreciate the loan. Unfortunately the deadbeats drive the cost up for everyone.

Why don't we get a little more clarity on the proposed regulations before we start talking about potential replacements for the "lender of last resort" and the corresponding unintended consequence.

I understand these lenders take on additional risk and their business models require a higher interest rate, but there is a lot of room between prime +1 and 300%. If nothing else, regulation requiring disclosure and transparency (not buried 10 pages of fine print coupled with aggressive sales tactics.)

[Wild Cobra]

As I said above, raise the Federal minimum wage to $15+ and raise the OT threshold to $75K/year. that lifts people out of poverty, off public assistance (taxpayers off the hook), and out of the bloody claws of the payday predators.
Cost of living for everyone would go up, and that $15 minimum wage might not be worth any more than the current one today.

[Wild Cobra]

go look for what happens when payday predators are allowed in a state.

Stupid people will lose their money one way or another. These lenders are just collecting it before a poker machine, drinking, or something else does.

[Wild Cobra]

If nothing else, regulation requiring disclosure and transparency (not buried 10 pages of fine print) coupled with aggressive sales tactics.

I believe that is already required.

[Th'Pusher]

I believe that is already required.

I believe you're talking directly out of your asshole.

[MultiTroll]

I believe that is already required.
If so it's not practiced.
I ran recon to one of these places.
Asked what is the minimum loan one could get for a car. Come to find out these greedoids got the CA legislature to set the bar at $2500. Yep, if you only need say 900 bucks, they won't do it. So how much will i pay back for the 2500? She hymned and hawed and would not give the answer. "Well it depends upon, blah blah". Me: "Real simple, if i pay it all back on time, neither early or late, how much total will that be?"

Long short i had to come back another day and damn near force an answer out of the manger. "About 7500"
Yeah nothing greedy about that.

Incidentally Dan Issa, Repug from CA vigorously blocked two senators attempt to lower the cap these pigs can charge.

[Wild Cobra]

If so it's not practiced.
I ran recon to one of these places.
Asked what is the minimum loan one could get for a car. Come to find out these greedoids got the CA legislature to set the bar at $2500. Yep, if you only need say 900 bucks, they won't do it. So how much will i pay back for the 2500? She hymned and hawed and would not give the answer. "Well it depends upon, blah blah". Me: "Real simple, if i pay it all back on time, neither early or late, how much total will that be?"

Long short i had to come back another day and damn near force an answer out of the manger. "About 7500"
Yeah nothing greedy about that.

Incidentally Dan Issa, Repug from CA vigorously blocked two senators attempt to lower the cap these pigs can charge.

LOL...

In such a blue state?

LOL...

[Spurminator]

Stupid people will lose their money one way or another. These lenders are just collecting it before a poker machine, drinking, or something else does.

There's that compassionate conservatism.

And just a few posts before you were pretending to be concerned about people who need cash advances to pay for something.

[boutons_deux]

Cost of living for everyone would go up, and that $15 minimum wage might not be worth any more than the current one today.

both MW and OT would be indexed to a good inflation number, and perhaps adjusted for regional COL.

[MultiTroll]

Then your reading comprehension is very bad. She borrowed $225 and promised to pay back $271 in a month so the fee was less than $50. What Poor Pitiful Margaret and the author of the article conveniently left out of the story is that Poor Pitiful Margaret gave them a hot check as payment so they were not only out the fee but the $225 cash they originally loaned her.
My bad. So i see what you mean, if Margaret doesn't write a check she's okay. :lol
Sad in that she was willing to work out a payment plan but Manager Monty Burns wouldn't have it. Released the hounds.

[boutons_deux]

Faith V. Greed: The Battle Between Faith-Based Organizations And The Payday Loan Industry

?“The Bible condemns gaining wealth through usury; and the writers of Scripture warn about gaining wealth through exploiting the poor… [but] The State of Alabama allows Payday lenders to charge an annual interest rate of 456%.”

So reads a 2014 Alabama Baptist State Convention resolution condemning predatory payday loans and recommending a 36% cap on interest rates (http://abscannualmeeting.org/resolutions/2014-resolutions/). This resolution is just one of many efforts by faith-based organizations all around the country to combat the payday loan industry and other questionable financial products they believe are hurting low-income Americans and eroding communities.

http://consumerist.com/2015/03/10/faith-v-greed-the-battle-between-faith-based-organizations-and-the-payday-loan-industry/

my guess: $$$ trumps faith, everytime.

36% cap is some kind of faith-based charity? :lol

I'd much rather these faith-y type AGITATE for the USPS' proposal to get into banking

[boutons_deux]

Congress May Delay Predatory Lending Protection For Military Personnel

The Military Lending Act prevents military personnel from being caught in revolving debt traps of triple-digit interest loans from predatory financing operations like payday and auto-title lenders, but there are loopholes that allow some lenders to get around the MLA’s 36% APR interest rate cap, resulting in the loss of millions of dollars to servicemembers each year (http://consumerist.com/2014/12/30/cfpb-urges-dod-to-close-loopholes-that-cost-military-personnel-millions-of-dollars/) and raising issues of national security (http://consumerist.com/2015/01/09/protecting-military-servicemembers-from-predatory-loans-is-a-national-security-issue/).

The Dept. of Defense is currently working toward new rules that would add protections for military personnel (http://consumerist.com/2014/09/26/defense-dept-aims-to-close-predatory-lending-loopholes-for-military-personnel/), but Congress may intervene to slow the DoD from making progress.

Today, the House Armed Services Committee is marking up and voting on the 2016 National Defense Authorization Act [PDF (https://consumermediallc.files.wordpress.com/2015/04/bills-114hr1735ih-fc.pdf)], a very large bill that includes a small provision (Sec. 594) which would require the Sec. of Defense to submit a report to Congress by March 1, 2016 on any new MLA-related rules. That’s all well and good, but the real catch comes here:

“Additionally, the Secretary of Defense may not implement any final regulation concerning [the Military Lending Act] until the end of a 60 day period beginning when the required report is submitted to the Committees on Armed Services of the Senate and the House of Representatives.”


This would have the effect ofpushing any new rules off until at least May 2016, a full year from now, meaning that servicemembers will lose millions more dollars to lenders and other companies.
For example, the Virginia-based retailer that “finances” purchases by military personnel through monthly installments without making it clear that the sticker prices on these products are already marked up and that the customer will end up spending several times the actual price;

like the servicemember who ended up paying $8,626 for a $650 laptop (http://consumerist.com/2014/07/28/usa-discounters-where-a-650-laptop-ends-up-costing-army-private-8626/).

Credit cards and deposit advance loans are also not currently limited by the MLA. And according to the Consumer Financial Protection Bureau, nearly 1-in-4 servicemembers will take out a deposit advance loan — often with an APR of around 300% — each year, paying millions in fees.

http://consumerist.com/2015/04/29/congress-may-delay-predatory-lending-protection-for-military-personnel/

Military ONLY Lending Act?

How about the 99% Lending Act?

Repugs run Congress now, and BigFinance/Capitalists pay Congress to keep the financial wealth going strong.

One of the shops trashed in Baltimore was a payday lender type of outfit. They know where to set up shop

[cantthinkofanything]

I don't know which I read less of. Bouton's rants or Franklin's odes to Goddess.

[boutons_deux]

I don't know which I read less of. Bouton's rants or Franklin's odes to Goddess.

you stupidity, ignorance are evidence of illiteracy in general, not just of The Great Bouton's nuggets of gold.

[cantthinkofanything]

you stupidity, ignorance are evidence of illiteracy in general, not just of The Great Bouton's nuggets of gold.

Grammatically incorrect. But I did read that one.

[boutons_deux]

Right-Wing Think Tank Shills for Payday Lenders on New York Fed Website (https://theintercept.com/2015/10/20/right-wing-think-tank-shills-for-payday-lenders-on-new-york-fed-website/)


The New York Federal Reserve Board, charged with overseeing Wall Street banks, turned over its normally staid official blog (http://libertystreeteconomics.newyorkfed.org/2015/10/reframing-the-debate-about-payday-lending.html#.ViU8zVaFspF) this week to a highly contentious argument in defense of high-cost payday lenders, who are partially funded by the same big firms the Fed is supposed to be regulating.

Michael Strain, a resident scholar at the ultra-conservative American Enterprise Institute think tank, co-authored the piece. While posts at the New York Fed’s Liberty Street Economics (http://libertystreeteconomics.newyorkfed.org/) blog always caution that the views expressed do not reflect the position of the regional bank, it is highly unusual to have anyone from an ideological think tank write an article there. A review of the last three months of Liberty Street Economics posts shows no other instance of this happening.

The article, “Reframing the Debate About Payday Lending,” begins by almost taunting the many critics of payday lenders, who charge low-income borrowers upwards of 400 percent (http://www.responsiblelending.org/payday-lending/policy-legislation/) interest for short-term loans (typically due within two weeks, or the next “payday”).

Payday lenders thrive the most where banks have the fewest locations (http://www.milkeninstitute.org/publications/view/601), according to a 2013 Milken Institute report.

In fact, it’s a two-step process:

banks abandon low- and moderate-income communities,

ceding the field to payday lenders who they fund.

Mega-firms like Wells Fargo Bank of America, US Bank, JPMorgan Chase and PNC Bank provided $1.5 billion in financing (http://thinkprogress.org/economy/2011/12/06/382752/big-banks-finance-payday-lending/) to the payday loan industry, as of 2011.

https://theintercept.com/2015/10/20/right-wing-think-tank-shills-for-payday-lenders-on-new-york-fed-website/