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Category Archives: Payday Lending

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Senator seeks GAO investigation of CFPB payday loan rulemaking

Posted in Payday Lending

In a letter to the Government Accountability Office (GAO), Senator David Vitter questioned “the adequacy and thoroughness of the CFPB’s analysis of small entity impacts” in connection with its payday lending rulemaking process and asked the GAO to conduct an investigation and issue a report on its findings.  Senator Vitter chairs the Senate Committee on Small Business… More >

New report shows negative effect of CFPB’s contemplated payday loan proposals on credit availability

Posted in Payday Lending

A new report prepared by Charles River Associates for the Community Financial Services Association of America (CFSA) found that the CFPB’s contemplated proposals for payday (and other small-dollar, high-rate) loans would cut small payday lenders’ revenues by 82 percent on average, potentially forcing these lenders to close many existing stores. The report also found that… More >

32 Democratic senators call for strong payday lending rules

Posted in Payday Lending

A group of 32 Democratic U.S. senators sent a letter to Director Cordray last week regarding the CFPB’s efforts to address payday lending in which they urged him “to issue the strongest possible rules to end the damaging effects of predatory lending.”  (It is unsurprising that the letter garnered no Republican sponsors but somewhat interesting… More >

US Hispanic Chamber of Commerce and CFSA to hold May 13 summit on CFPB short-term lending rulemaking

Posted in Payday Lending

On May 13, 2015, the United States Hispanic Chamber of Commerce (USHCC) and the Community Financial Services Association of America (CFSA) will host a policy and research summit in Washington, D.C. on “Consumer Credit Under Assault: Does the Data Support the Rhetoric?” At the summit, there will be a discussion of the CFPB’s recent contemplated… More >

Report from SBREFA Panel on Payday, Title and Installment Loans

Posted in Payday Lending, Vehicle Loans

Yesterday, I had the opportunity to participate as an advisor to a small entity representative (“SER”) at the small business review panel on payday, title and installment loans.  (Jeremy Rosenblum has four posts—here, here, here and here—that analyze the rules being reviewed in detail.)  The meeting was held in the Treasury Building’s Cash Room, an impressive, marble-walled room… More >

The CFPB’s contemplated payday/title/high-cost lending proposals: our thoughts on collection practice limits

Posted in Payday Lending, Vehicle Loans

This is the last of a series of blog posts in which we share our reactions to the CFPB’s contemplated proposals taking aim at payday (and other small-dollar, high-rate) loans (“Covered Loans”).  In this blog post, we share our thoughts on the CFPB’s proposed limits on payment collection practices.  (Our previous blog posts have looked… More >

Some issues for “longer-term” loans under the CFPB’s contemplated payday/title/high-cost lending proposals

Posted in Payday Lending, Vehicle Loans

In this blog post, we share our thoughts on the 36% “all-in” rate trigger and restrictions for loans considered to be “longer-term” under the CFPB’s contemplated proposals taking aim at payday (and other small-dollar, high-rate) loans (“Covered Loans”).  (Our previous blog posts have looked at the CFPB’s grounds for the proposals, how the proposals will… More >

Some issues for “short-term” loans under the CFPB’s contemplated payday/title/high-cost lending proposals

Posted in Payday Lending, Vehicle Loans

In this blog post, we share our thoughts on how the CFPB’s contemplated proposals taking aim at payday (and other small-dollar, high-rate) loans (“Covered Loans”) will impact “short-term” Covered Loans and the flaws we see in the CFPB’s ability to repay analysis.  (Our last blog post looked at the CFPB’s grounds for the proposals.) Impact.  The CFPB plans to provide… More >

The CFPB’s contemplated payday/title/high-cost lending proposals: our initial reactions

Posted in Payday Lending, Vehicle Loans

Last Friday, we posted a summary of the contemplated CFPB proposals taking aim at payday (and other small-dollar, high-rate) loans (“Covered Loans”).  In this blog post, we share our thoughts on the CFPB’s grounds for the proposals.  Over the next few days, we will be publishing several additional blog posts to share our reactions to… More >

CFPB holds hearing on payday and auto title loans in Richmond, VA

Posted in CFPB General, Deposit Advance Loans, Payday Lending, Vehicle Loans

On March 26, the CFPB held a public hearing on payday and auto title lending, the same day that it released proposed regulations for short-term small-dollar loans. Virginia Attorney General, Mark Herring gave opening remarks, during which he asserted that Virginia is perceived as the “predatory lending capital of the East Coast,” suggesting that payday… More >

CFSA weighs in on CFPB proposed payday regulations

Posted in Payday Lending

On March 26th, the Community Financial Services Association (“CFSA”) held a press call to address the CFPB’s rulemaking process for developing payday loan regulations.  CFSA Chief Executive Officer Dennis Shaul offered brief opening remarks before answering questions from the press immediately prior to a CFPB field hearing on payday loans being held in Richmond, VA…. More >

CFPB shows its hand on payday (and title and longer-term high-rate) lending

Posted in Deposit Advance Loans, Payday Lending, Vehicle Loans

The CFPB has moved a step closer to issuing payday loan rules by releasing a press release, factsheet and outline of the proposals it is considering in preparation for convening a small business review panel required by the Small Business Regulatory Enforcement Fairness Act and Dodd-Frank.  The CFPB’s proposals are sweeping in terms of the… More >

Another payday loan study finds affordability and rollover limits do not benefit borrowers

Posted in Payday Lending

We recently wrote about three studies that cast serious doubt on the benefit to payday loan borrowers of an ability-to-repay requirement, a payment-to-income (PTI) ratio ceiling, and rollover limits, three potential payday loan restrictions thought to be under consideration by the CFPB. The findings of these studies find support in another study released this week… More >

CFPB to hold March 26 payday lending field hearing

Posted in Payday Lending

The CFPB has announced that it will hold a field hearing on payday lending on March 26, 2015 in Richmond, Virginia.  Like other CFPB field hearings, the event will feature remarks from Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public. At his appearance last week before… More >

Director Cordray appears before House Financial Services

Posted in CFPB Rulemaking, Hot Issues, Overdrafts, Payday Lending, Prepaid Cards, Richard Cordray, TILA / RESPA

On Tuesday, March 3, CFPB Director Richard Cordray appeared before the House Financial Services Committee to answer questions regarding the Bureau’s Semi-Annual Report to Congress and the President, which it published on December 4 of last year.  As we anticipated shortly before Director Cordray’s testimony, the report merely provided a backdrop for the hearing, which,… More >

Liberal and minority caucuses press Director Cordray for payday loan limits

Posted in Payday Lending

The leaders of four liberal and minority Congressional caucuses have written to Director Cordray to urge the CFPB to adopt “strong protections” for payday loans.  The letter was signed by the co-chairs of the Congressional Progressive Caucus and the chairs of the Congressional Hispanic Caucus, Congressional Black Caucus, and Congressional Asian Pacific American Caucus. The… More >

Another study raises questions about possible CFPB payday loan limits

Posted in Payday Lending

We recently wrote about two studies, one by Professor Ronald Mann and the other by Professor Jennifer Lewis Priestley, that cast serious doubt on the benefit to payday loan borrowers of an ability-to-repay requirement and limits on rollovers for payday loans, two elements that the CFPB is expected to include in its payday loan proposal. Another recent… More >

Payday loan rulemaking prediction: CFPB will issue proposal this summer

Posted in Payday Lending

Isaac Boltansky of Compass Point has issued an estimated timeline for the CFPB’s payday loan rulemaking that includes a July 2015 expected date for the CFPB’s release of a proposed rule. Mr. Boltansky estimates that the CFPB will  initiate a small business panel pursuant to the Small Business Regulatory Enforcement Fairness Act (SBREFA) this month, conclude… More >

Studies question value of expected CFPB payday loan limits

Posted in Payday Lending

The CFPB’s payday loan rulemaking was the subject of a NY Times article this past Sunday which has received considerable attention. According to the article, the CFPB will “soon release” its proposal which is expected to include an ability-to-repay requirement and limits on rollovers. Two recent studies cast serious doubt on the rationale typically offered… More >

NY Regulator and House Republicans weigh in on CFPB payday loan rulemaking

Posted in Payday Lending

Not surprisingly, letters sent to the CFPB this week by New York Financial Services Superintendent Benjamin Lawsky and by 12 House Republicans urge the CFPB to take very different approaches as it considers payday and short-term loan rulemaking. In their letter, the House Republicans set forth the following five principles which they believe the CFPB should… More >

Defense Department proposes expansion of Military Lending Act regulations

Posted in Military Issues, Payday Lending

As anticipated, the Department of Defense’s proposed regulations to implement provisions of the Military Loan Act added by the 2013 Defense Authorization Bill would significantly expand MLA coverage.  The proposed revisions would limit interest charged to servicemembers and their dependents on all payday loans, vehicle title loans, refund anticipation loans, deposit advance loans, installment loans,… More >

CFPB and FTC file lawsuits against online payday lenders

Posted in CFPB Enforcement, Payday Lending

Earlier this month, the CFPB and FTC filed lawsuits against different groups of interrelated companies and their individual principals for engaging in allegedly unlawful online payday lending schemes. The CFPB’s lawsuit, which the CFPB made public yesterday, was filed under seal on September 8, 2014 in a Missouri federal court contemporaneously with an ex parte… More >