Sign the Petition

Tell the CFPB to protect working families from predatory lenders!

The Consumer Financial Protection Bureau (CFPB) needs to issue strong protections that reform the payday lending industry by ending its debt traps and abusive terms and requiring basic underwriting of a borrower’s ability to repay a loan. And we need rules that are broad enough to head off industry evasion we've seen time and time again in states where other accountability efforts have been attempted. We are counting on the CFPB to stand up to the predators who say our families and neighbors don't deserve decent, affordable credit with reasonable terms.

Latest News

Year in Review 2014

It was quite a year for Preyday Lenders. This week we interrupt our regularly scheduled weekly release of a new predator profile with a look back at those we profiled in 2014. We’ll be back next week with a profile of someone we like to call the “legitimate businessman.” You won’t want to miss it.

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Opinion: Time to End Payday Loan Industry’s Escape Act

Liz Ryan Murray | National People's Action For more than 12 million American men and women who are lured into the payday loan debt trap each year, escape from a crushing debt cycle can feel impossible. Meanwhile, the payday loan industry has made itself rich by becoming a virtual Houdini – escaping regulations and lavishing money on lawmakers to get its way. It’s time we implemented rules broad enough to stop the payday industry’s tricks and evasion …

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Release: Aggressive Campaign Targeting Payday Lenders Launched as CFPB Considers New Regulations

National People's Action A new campaign launching today will aggressively target the payday and installment lending industry, calling attention to its predatory practices that line the pockets of lenders by trapping customers in a cycle of mounting debt. The campaign, launched by Americans for Payday Lending Reform, a project of National People’s Action, will include a significant investment in digital advertising and a new online hub featuring a weekly series highlighting payday “predators of the week,” breaking news in the fight for reform, and other research related to the industry, its players, and practices.

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This Multi-Billion Dollar Industry Is Ravaging America’s Working Class

Katey Troutman | Wall Street Cheat Sheet Right now, 12 million Americans are caught up in a cycle of loans that boast interest rates of 400 percent or more. Borrowers will spend an average of 212 days out of the year repaying these loans, and the average borrower spends more than $1,105 to pay off a loan of just $305, according to the Center for Responsible Lending. Welcome to the payday lending industry, a booming business with …

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CFPB Files Suit Against Payday Lender

Kate Davidson | Politico

A federal judge has temporarily halted the operations of an online payday lender at the request of the Consumer Financial Protection Bureau, which claims the company illegally deposited payday loans and withdrew millions of dollars in fees from consumer checking accounts.

The bureau said the Hydra Group used information bought from online lead generators to access consumers’ accounts, then used falsified loan documents to claim the consumers had agreed to phony online payday loans.

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Federal Agency Says Payday Loan Customers Bilked out of Millions

Mark Morristhe | Kansas City Star

Federal authorities have asked a U.S. district judge to freeze the business activity and assets of a network of payday loan companies purportedly controlled by two local men.

The Federal Trade Commission earlier this month asked for injunctions against more than a dozen payday loan businesses controlled by two Johnson County men, Timothy A. Coppinger and Frampton T. Rowland III.

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The Legal Trick Payday Lenders Are Using to Skirt the Law

Joe Patrice | Above The Law

A 60-year-old Navy veteran needed money fast. So he did what far too many people do in that situation and applied for a short-term “payday-type” loan. When all was said and done, he was charged well over 100 percent interest. Seriously. One major player in the industry offered a $2,600, 47-month loan, and sought a total repayment of $20,280.03! That’s a 204.94 percent annual percentage rate!

Most of us realize that short-term lenders make their nut on exorbitantly high interest rates, but states have systematically cracked down on these companies and capped the interest they’re allowed to charge. State regulators have had a good deal of success in recent years securing hefty settlements for citizens victimized under state usury laws.

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