Business

Payday Loan Industry Defends Business Model as Feds Prepare Clampdown

Whether they offer payday loans online or through a physical store, payday lenders have been under attack for years. Many state legislators and municipal governments have enacted rules regulating the amount of interest lenders can charge for bad credit payday loans, how many loans a borrower can have at one time and how many times

With Trump President, Is Obama’s Plan to Kill Installment Loans Now Dead?

Donald Trump’s victory in the 2016 presidential election took many people by surprise. Pollsters, political analysts, news anchors and even celebrities expressed shock that a Washington outsider could triumph over a candidate with Hillary Clinton’s history in politics. Clinton and Trump expressed views throughout their campaigns that were in direct opposition, including their opinions on

New Payday Loan Regulations May Weaken Those of States that Have Banned Them

The effort to protect borrowers from payday loan lenders may backfire in states where laws regulating these lenders already exists. Short-term loans with high interest rates are facing a lot of government scrutiny. In fact, Georgia has banned them entirely. However, new payday loan regulations may weaken the rules of the states that have banned

Cash Advance Lenders are Generous with Campaign Cash

 With federal regulations likely on the way, cash advance lenders have been generous with campaign cash in recent years. In fact, short-term loan lenders have sent millions of dollars to Washington in a transparent attempt to sway government officials from enacting laws that would curtail it. CNNMoney reports that it’s working. Cash Advance Lenders Contribute

Canadian Finance Organization Finds Payday Loans Fill a Legitimate Need

 While commonly viewed as an unfavorable product, a new report published by the Canadian Finance Organization finds that payday loans fill a legitimate need. In times of financial distress, some Canadians may not have access to traditional sources of credit, making payday loans a necessary service. The finance board also noted that if regulatory bodies

What President Trump Means for Government Regulation of Payday Loans

The Consumer Financial Protection Bureau was created following the financial meltdown of 2008. Authority to create the CFPB came from the passage of the Dodd-Frank Act, support for which was sharply divided along party lines: Democrats loved it, but Republicans despised it. Over the years, Republicans have made repeated attempts to rein in the CFPB’s

South Dakota Caps Interest Rates on Installment Loans at 36 Percent

Not only did South Dakota voters embrace Donald Trump as their new president, but they also put the kibosh on high interest rate installment loans. South Dakota capped interest rates on installment loans at 36 percent. The state’s voters also stamped down a similar measure for car title lenders. South Dakota Votes to Restrict Interest

When Long-Term Installment Loans Become Long-Term Problems

Regulatory action has caused a number of payday loan lenders to switch lending gears and offer long term installment loans. The change has come because loans with extended repayment terms have been largely ignored by policymakers. While this transition initially gave the appearance of making it more affordable for people to take out small dollar

Online Payday Loans Run Afoul of State Regulators

Online payday loans have been subjected to a great deal of scrutiny in the last 10 years as well as scathing criticism. Because the federal government left the regulation of payday loans to each individual state, the applicable laws were based on the physical location where the lender made the loans. As certain states moved

Do Cash Loans for Your Small Business Justify the High Interest Rates?

If you operate a small business, you undoubtedly understand the concept of profit and loss. You know that when your expenses increase, your profits decrease. You strive to control your overhead and labor costs, negotiate with suppliers for the best prices and closely monitor expenses such as the interest rates you pay. However, there are

Installment Loans for Bad Credit Borrowers — CFPB Regulations May Soon Eliminate Them

The Consumer Financial Protection Bureau, commonly called the CFPB, is a federal agency that was created under the authority of the Dodd-Frank Act. The CFPB’s jurisdiction includes credit unions, debt collectors, banks, securities firms and even payday lenders. Since its inception, the CFPB has been especially critical of lenders offering credit products to subprime borrowers,

Online Cash Advance Availability May Soon be a Bygone Relic

Millions of borrowers have found that online cash advances can be an excellent option for dealing with unexpected expenses. Many borrowers cite the convenience of an online loan; the application can be handled from the comfort of the borrower’s home. Other borrowers appreciate the privacy afforded by an online cash advance; coworkers, neighbors or relatives

Online Payday Loan Regulations to Supersede State Laws

In June 2016, the Consumer Financial Protection Bureau published its proposed new regulations for online payday loans, certain installment loans and vehicle title loans. The new rules have sparked a great deal of debate on both sides of the issue. Some critics feel that the regulations are not stringent enough, but others believe that they

Don’t Let Fast Loans Turn into Fast Problems

Getting fast loans can quickly generate even faster problems for the unwary. Quick and easy cash loans, which can be a windfall for those who face an immediate need for cash, can also put borrowers into long-term debt, damage their credit scores and even make them susceptible to scams, hackers, thieves and predatory lending practices.

Google Still Showing Payday Loan Ads Despite Pledges to the Contrary

Payday loan advertising remains more resilient than critics ever expected according to a recent article posted at Austin360.com. The exposé found that Google, which supposedly banned payday loan ads during the summer of 2016, was continuing to run ads for payday loans as of October of 2016. Financial products are extremely complex, and loans come

Oh, the Irony – A Payday Loan Businessman Faces a Billion Dollar Fine

Nevada Chief Judge of the Las Vegas federal court, Gloria Navarro, fined racecar driver Scott Tucker and the payday loan companies that he owns $1.27 billion, which is to be paid to the Federal Trade Commission for deceiving payday loan customers. The report, which was posted online at Time.com, explained that the judgment applied to

New Regulations for Online Payday Loans Will Hurt the Poor, Not Help Them

The sweeping new regulations that the Consumer Financial Protection Bureau has proposed to regulate the payday lending industry could easily hurt poor and disenfranchised consumers more than help them. A report published at Tampabay.com concedes that even the industry’s critics admit that there are few alternatives for online payday loans for most working people who