By Brian Arola
Advocates from local nonprofits plan to call on the Mankato City Council to place interest-rate caps on what they call “predatory” payday lenders.
Payday loans, typically amounting to $500 or less, give borrowers quick cash to be paid back in full at high interest by their next paycheck. Critics say the loans target people in desperate situations, enticing borrowers into “debt spirals” that they’re unable to pay off, while the companies offering them have contended they’re short-term loans for people with otherwise limited credit options.
Cryptocurrency investing has been a wild ride lately.
So what happens when you combine the tempting prospect of new global currencies and unprecedentedly low prices, but you don’t have any cash to invest? Americans are turning to lenders.
By Heidi Durand
As stakeholders in the region, Minnesotans for Fair Lending had the opportunity to learn from our peers at the third annual Midwest Asset Building Conference in Saint Paul, Minnesota, from June 29-30, 2022.
CFPB Sues ACE Cash Express for Concealing No-Cost Repayment Plans and Improperly Withdrawing Consumers’ Funds
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) filed a lawsuit today accusing payday lender ACE Cash Express of concealing free repayment plans from struggling borrowers. Because of ACE’s illegal practices, individual borrowers paid hundreds or thousands of dollars in reborrowing fees, when they were in fact eligible for free repayment plans. These practices generated at least $240 million in fees for ACE, while keeping borrowers in debt. The CFPB also alleges that ACE lied to borrowers about the number of times it would attempt to debit their bank accounts for repayment of loans and fees. In a 2014 CFPB enforcement action, ACE paid $10 million in penalties and borrower refunds for using illegal debt-collection tactics, and the company is still bound by the order from that case.
By Nicole Goodkind
New York (CNN Business)--In the last few months, Yumekia Jones, a legal assistant at the Mississippi Center for Justice's Indianola office, has fielded an unusually high number of calls — a roughly 400% spike — from people in dire need of immediate financial assistance.