Efforts to get payday loan reform in Louisiana failed in the state legislature during the recently concluded session. The advocacy group Together Louisiana has since sent a letter to the Consumer Financial Protection Bureau asking for safeguards to be enacted nationally.
Together Louisiana wants the bureau to implement new rules that would prohibit issuing payday loans to borrowers already in debt or unable to afford repayment, and increase the reporting requirements on payday loan transactions.
You live on a limited income, paycheck to paycheck. Now your next paycheck is in jeopardy, because your car won’t start. What to do?
There’s that payday lending store around the corner, so you go take out a loan and buy a new battery for your car. You give the lender a post-dated check for the amount of the loan, plus interest and fees. The lender cashes your check after you get paid. Done deal, right?
Not always, according to David Gray with the Louisiana Budget Project.
As part of its Changing Lives of Women series, Morning Edition is exploring women and their relationship with money: saving, purchasing and investing for themselves and their families.
Cuban-American Barb Mayo describes a tanda like this: "It's like a no-interest loan with your friends." Mayo had never heard of tandas growing up, and it wasn't until she started working in sales for a cable company in Southern California that she was introduced to the concept.
Originally published on Thu December 5, 2013 3:05 pm
A payday loan is a costly form of credit operating on the fringes of the economy. That's why the target of a new crackdown by federal regulators may surprise you: Instead of a forlorn-looking storefront with a garish neon sign, it's your familiar neighborhood bank.
A small but growing number of banks, including some major players, have been offering the equivalent of payday loans, calling them "deposit advances."
That is, at least, until bank regulators stepped in Nov. 21 and put new restrictions on the loans.
Originally published on Wed November 6, 2013 4:06 pm
Payday lenders made about $49 billion in high-interest loans last year. More than a third of those loans were made online. I wondered what happens when you apply for such a loan, so I decided to find out.
In the course of reporting a story earlier this year, I logged on to a site called eTaxLoan.com and filled out an application.
I asked for $500 and, to be safe, I made up an address, a name (Mary) and a Social Security number. The site asked for more sensitive stuff — a bank account number and a routing number — and I made that up, too.