News

Globalism and the Growth of Income Disparity

Globalism refers to connectedness and communication networks that span continents and bring the world’s people closer together, and globalization refers to how globalism increases or decreases. Digital technology has increased globalism, global marketing and business opportunities, but this growth doesn’t mean that everyone gets a share of the wealth. There has been a growing gap

Google Censors Entire Payday Industry; Who Will Be Next?

Google, which handles an overwhelming percentage of online searches, has rules in place that ban advertising for products such as guns, tobacco, illegal drugs and products that don’t fit the company’s “family image.” These are usually AdWords ads, which are those listings that appear along with organic search results. Google decided to extend its mandate

Is Brexit the Lehman Moment for the $100 Trillion Global Bond Bubble?

Most economies have barely recovered from the 2008 subprime mortgage fiasco that was caused by sloppy lending practices at banks, overextended them and compromised essential liquidity to pay their own debts. Investopedia.com reports that Lehman Brothers, the fourth-largest investment bank in the United States, was forced to declare bankruptcy with $619 billion in debt versus

Clinton Praises Pending Payday Loan Restrictions

In recent years, payday lenders have endured increased scrutiny and harsh criticism from a variety of sources. Consumer protection agencies, citizen’s action committees, credit counseling services and even actors have all made public statements condemning payday loans. Many politicians have been quite vocal about the issue as well. Hillary Clinton has become one of the

Payday Loans Under Siege in Alabama

Considering the numerous outcries against payday loans from federal agencies, consumer groups and others, it is not surprising that payday lenders are under siege in Alabama. Payday lending has been discussed in the Alabama legislature for several years, but during this year’s regular session, a bill to regulate the industry made greater progress than similar

Everyone Hates Payday Loans – Except the 12 Million People that Use Them

In the history of the United States, few legitimate businesses have been attacked with the fervor and animosity that critics have been directing toward payday lenders. President Obama has spoken out against payday loans, and some of his top aides met with a coalition of religious leaders recently to discuss the need to regulate the

Elizabeth Warren Takes on the Payday Lending Industry

When Elizabeth Warren was still teaching law at Harvard, she came up with a plan to help the country’s borrowers. The senator’s idea was to establish an agency that protected consumers from crooked financial companies in the same way that the Consumer Product Safety Commission keeps people safe from faulty washing machines. Warren’s efforts resulted

Walmart – The Queen of Corporate Welfare

President Ronald Reagan introduced American voters to the derogatory term “welfare queen” while campaigning for the country’s highest office. According to Reagan, this was a woman who supposedly used manipulation and fraud to collect huge welfare payments. He claimed that there were a lot of them living in the United States. The real welfare queens

Proposed CFPB Regulatory Changes in Payday Industry Drawing Fire

Proposed CFPB Regulatory Changes in Payday Industry Drawing Fire Legislators established the Consumer Financial Protection Bureau, or CFPB, to protect borrowers from unfair lending practices put in place by financial institutions. However, the proposed CFPB regulatory changes in the payday industry is drawing fire. Critics claim that the proposals will end up harming low-income individuals

Political and Economic Populist Movements Catch Fire Across Europe

Anti-establishment sentiment is causing political and economic populist movements to catch fire across Europe. It is building because the electorate is experiencing a sense of inequality. In addition to this, some politicians have decided to add fuel to the populism fire by vilifying immigration for their own political purposes. Europe’s populist attitudes are expanding on

Killing Payday Lending By Diktat – the CFPB has Really Gone to Far

Killing Payday Lending By Diktat – The CFPB Has Really Gone Too Far Proposed regulations by the Consumer Financial Protection Bureau, or CFPB, could prevent the payday loan industry from doing business. Instead of establishing rules that allow short-term loan companies to continue operating, the CFPB is going for the kill shot. Essentially, the agency

Google: Your Payday Loan Dollars Are No Longer Welcome

Search engine market leader Google recently announced a global ban on payday lending ads. These lenders will no longer be able to advertise payday loans, short-term loans, title loans and high-interest loans with interest rates higher than 36 percent APR. Google claims that it’s bowing to pressure from consumer groups because these ads target low-income

How Online Payday Loan Lenders Bypass State Payday Laws

If you’re wondering how payday loan lenders bypass state payday laws, keep in mind that these lenders tend to be a wily bunch. Short-term loans produce major profits for lenders. Because of this, payday loan companies often change their business models when legislators attempt to rein them in. Tom Feltner, an associate of the Consumer

Tribal Payday Lending – A New Growth Industry

Tribal Payday Lending a New Growth Industry Native American tribes across the U.S. are gaining financial footing in issuing online payday loans. While some tribal nations have the monetary resources to support their enterprising endeavors, many others are engaging in irresponsible lending practices that are illegal in most states. Protected by sovereign immunity, tribes are

House Panel Votes to Block New CFPB Payday Loan Regulations

Payday lenders received a possible lifeline after a house panel voted to block new Consumer Financial Protection Bureau, or CFPB, payday loan regulations. With a 30 to 18 vote, the Appropriations Committee initiated the process of blocking the proposed regulations offered by the agency. According to reports, the House panel believes that the CFPB is

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