Wasserman Yanks Support for Payday Loan Industry

After intense public pressure and a challenge for her seat from the left, Wasserman yanked her support for the payday loan industry. Within a few hours of the Consumer Financial Protection Bureau, or CFPB, introducing federal rules for the short-term loan industry, Representative Debbie Wasserman Shultz released a statement on Facebook complimenting the agency’s efforts.

While Payday Loans Are a Poor Option, Forbidding Them is Far, Far Worse

In recent years, politicians, consumer agencies and even celebrities have become increasingly critical of payday lenders. Terms such as “debt trap,” “predatory lending practices” and “usurious rates” are becoming extremely common in comments made by these critics. Opponents of payday loans would regulate the industry so severely that many lenders would stop offering short-term, low-dollar

New CFPB Payday Loan Rules Would Kill the Industry

The Consumer Financial Protection Bureau, or CFPB, recently proposed new regulations that are geared toward eliminating payday loan debt traps. In particular, the agency will require lenders to confirm that consumers are able to repay the funds that they borrow. The new protections will cover payday loans, specific high-cost installment loans, auto title loans and

Severe Storm Warning – Bill Gross Warns on Global Debt Bubble

Investment guru Bill Gross has warned that a global debt bubble may lead to an economic collapse. If you have been following the markets this year, you are probably aware that investors and banks are treading into unknown territory. A series of unconventional monetary policies, strange yield curves, and rapid technological growth have inspired experts

The War on Payday Loans Begins to Look Like the War on Drugs

President Nixon fired the first shot in the failed war on drugs when he declared it “public enemy number one.” Supposedly, the reason for stepping up arrests and prosecution of traffickers and users was to change people’s drug habits, but the lesson of nearly 50 years, according to an article in the, is that

Brexit Could Set Off A Storm in Global Markets

If you have been following the financial news since the beginning of 2016, you likely know that Britain has considered leaving the European Union. Britain’s departure, or Brexit, could trigger the collapse of the entire euro zone. If this happens, financial woes may spread to the Americas and Asia. Leaders from France and Germany have

Millions of Americans Need Payday Loans; New CFPB Rules Would Prevent That

The Consumer Financial Protection Bureau finally issued regulations that affect the payday lending industry. The new rules would require lenders to ensure that borrowers have the ability to repay their loans and limit how many times electronic debits could be presented at banks. Presenting electronic checks multiple times for payment escalates bank service charges, but

Why So Many Americans are Broke

A recent Federal Reserve report confirmed that Americans are broke. The data shows that 46 percent of the nation’s citizens would be in trouble if they were required to come up with just $400 to cover an emergency. How did this happen? The answer to why so many Americans are broke ranges from a slow

With Brexit Increasingly Likely, Will the EU be Shattered?

Recent polls suggest that the United Kingdom is likely to leave the EU. What does this mean for the rest of Europe? During the past few months, supporters of the British proposal to leave the European Union have gained traction. This British exodus from the European Union, or Brexit, will cripple Europe’s economy and current

Payday Loans – Addictive as Drugs

Payday loans can be addictive because they’re readily available and easy to get, so people turn to them often when they need cash to tide them over during financial emergencies. Unfortunately, these loans were meant only for short-term, emergency cash needs and carry high interest rates to keep them available to everyone–even people with bad

With Rising Oil Prices, Could Shale Oil be Set for a Recovery?

2016 has been a time of volatility, speculation, and uncertainty for the global energy markets. During the first quarter of 2016, oil prices were at low levels that threatened the profitability of many energy firms. These price-related issues were caused by a supply glut in the global market for oil. This excess supply was partly

The European Banking System Is in Serious Trouble

Since the Global Financial Crisis of 2008, the European Banking System has been filled with politics and uncertainty. Due to the interconnected nature of the European Banking System, fiscal problems in Greece, Italy, and other members have become economic problems for the entire European Union. Due to a conflict between regulators and banks, the European

Why the Smart Money is Getting Out of Stocks

Despite the Dow’s record setting numbers, experts report that smart money is getting out of stocks. Smart money earned its nickname from making better decisions than average investors, so if those who are in charge of these funds are shifting their investment strategy, then everyday stockholders should consider following suit. Why is Smart Money Fleeing

Are High Interest Installment Loans any Better than Payday Loans?

Increased state and federal regulations are forcing many short-term loan lenders to switch their business tactics. Instead of offering traditional payday loans, these lenders are transitioning into providing installment loans. Are high interest installment loans better than payday loans? The answer to this question comes down to the consumer and his or her needs. What

If not for Payday Loans, Would Loan Sharks Fill the Void?

The term “loan shark” was coined in America during the latter half of the 19th century, according to an article published in the Washington and Lee Law Review. The epithet was applied to lenders offering salary advances and chattel mortgages, which were types of loans that become prominent around the time of the Civil War.

Does the Payday Loan Industry Qualify as Predatory Lending?

Critics of payday loans frequently call the industry’s lending practices “predatory.” Since there is no universal legal definition of predatory lending, it is necessary to review what financial experts consider predatory practices. Only then will it be possible to decide whether the payday loan industry is guilty of predatory lending practices. What Qualifies as Predatory

Google Kills Advertising for the Payday Lending Industry

Taking the payday loan industry by surprise, Google announced that it intends to kill advertising for short-term loan lenders. While making this announcement, the Internet company accused the industry of using harmful and deceptive business practices. Google could have a greater impact on payday loan lenders than government agencies since many of these loans begin