There is plenty in the CFPB's new report on payday lending that re-iterates why it is important to have a strong payday rule. But perhaps the most interesting part is how it reveals the ways that banks are complicit in trapping consumers in the cycle of debt.
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There are several flavors of payday loans. They are all bitter, but some are not even legal.
The Community Financial Services Association ("CFSA") and Advance America have filed a lawsuit in the US District Court for the District of Columbia which challenges the FDIC, the Federal Reserve, and the Office of the Comptroller of the Currency over Operation Chokepoint.
Everyone knows that responses by NACHA, banks, and others to the recent action from regulators in New York have had the effect of crippling the online payday loan industry. But for the moment, the enforcements and letters in that work have created subsequent waves that will disrupt other elements within alternative financial services.
Online payday lending depends upon lead generation. The customer churn created by all of those destroyed household
Typical costs, both on an annual basis and on a per-loan basis, to operate a retail payday loan store:
- wages: $77,015, $9.56
- advertising: $10,836, $1.43
DFC Global, the parent of Dollar Financial and an international purveyor of payday loans, released the numbers on a poor third quarter. While investors focused on if Dollar can recover, the transcript from their investor presentation provides a few telling gems about the state of the payday industry. There is a lot of disruption in
The Utah legislature has killed a bill that might have prevented consumers from falling into a debt spiral.
House Bill 113 considered the creation of a new database that would listed users of payday loans. Anyone with an outstanding loan, or in default on an existing loan, would have been
H&R Block's RACs selling briskly: H&R Block's update on its early season returns reported that it sold 4.6 million refund anticipation checks to its retail consumers during the first half of the tax season. Block had about 8 million retail returns through February 15th, so a back-of-the-envelope