Company That Sold Fake Payday Loan Debts To Collectors Must Pay $4.1M

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payday loans

We’ve heard it before: A debt collection company engaged in a “phantom” debt scheme in which they try to entice unsuspecting individuals into paying debts they don’t actually owe. While federal regulators have cracked down on these unscrupulous organizations in the past, they are now turning their attention to the companies providing information on these supposed debts. To that end, the Federal Trade Commission today ordered one such data company to pay $4.1 million. [More]

Financial Protection Bureau Finalizes New Rules To Curb Predatory Lending, But Will Congress Let It Happen?

In an effort to rein in short-term payday loan company in Zanesville, high-cost loans that often take advantage of Americans who need the most help with their finances, the Consumer Financial Protection Bureau has finalized its new rule intended to make these heavily criticized financing operations to be more responsible about the loans they offer. But will bank-backed lawmakers in Congress use their authority to once again try to shut down a pro-consumer regulation? [More]

Are The Comments Opposing Payday Loan Rules Legitimate?

Last summer, the Consumer Financial Protection Bureau released proposed rules intended to prevent borrowers from falling into the costly revolving debt trap that can leave people worse off than if they hadn’t borrowed money in the first place. Since then, those in the payday lending industry have ramped up their efforts to ensure the proposal isn’t finalized. [More]

Debt Collector Accused Of Taking Money From People Who Didn’t Owe Anything

As part of its ongoing efforts to crack down on unscrupulous debt collectors, the Federal Trade Commission has accused a North Carolina company of running a “phantom” debt collection scheme that went after people for money that they did not actually owe. [More]

Feds Sue Four Online Payday Lenders For Collecting On Void Debts

Last year, federal regulators released a report that found online payday lenders – despite their clean, professional websites – could be just as bad, if not worse, than their storefront counterparts. Today, the Consumer Financial Protection Bureau provided yet another example of how these companies can wreak havoc on consumers’ finances by skirting the law. [More]

Most Americans Favor Payday Loan Reforms

Despite claims from the payday loan industry that Americans don’t want reforms intended to prevent borrowers of these short-term loans from falling into a revolving debt trap, two new reports show that most people do think it’s time to rein in payday lending and provide more affordable loan options for borrowers in need. [More]

Future Looks Dim For Consumer Financial Protection Bureau Under Trump Presidency

On the campaign trail, President-elect Donald Trump made his disdain for the 2010 Dodd-Frank financial reforms clear, leaving many to wonder what a Trump White House would mean for the Consumer Financial Protection Bureau – the financial services regulator created by the 2010 legislation. Now that pieces are beginning to fall into place for the Trump transition plan, the outlook for the CFPB does not appear very bright. [More]

South Dakotans Vote To Cap Payday, Auto-Title Loan Interest Rates At 36%

More than a dozen states and the District of Columbia currently prohibit payday lenders and other short-term loan companies from charging exorbitant interest rates on their financial products. Last night, the residents of South Dakota added their state to that list, voting to cap interest rates on short-term loans at 36%. [More]