Category Archives: Uncategorized

A US District judge rules against AMG Services.  AMG processed upwards of  5 million loans.  The entity was partnering with a Native American tribe and believed they had sovereign immunity.  The judge ruled that the FTC Act grants the agency authority to regulate arms of Indian tribes, their employees, and their contractors.  This creates a conundrum of how Native American […]

The big change here is for payday loans in Missouri.  This new law eliminates rollovers and caps the fee at 35%.  From a pricing standpoint this is not a problem.  The problem is that borrowers can not afford the large balloon payment.  PDL Industry discusses why installment loans work better than payday loans back in […]

“Winter is Coming.” – George R.R. Martin, A Game of Thrones Jeremy Rosenblum of Ballard Spahr published an informative article on what the “payday” industry can expect from the CFPB in 2015 (not 2014), titled “Hints of future payday rule-making.” CFPB may take a look at: required payment plans databases and multiple loan limits. At […]

In a letter to NACHA, Benjamin Lawsky, writes: “The Department believes these proposals do not adequately address the current abuses of the ACH network by…payday lenders who make usurious loans in and to New York,……..should adopt stronger measures to prevent online payday lenders and others from using the ACH network to violate state and federal […]

Four Oaks Bank cut a deal with the DOJ regarding alleged illegal, online payday loans.  Long story short, the DOJ is choking off access to the ACH network for online lenders who are not licensed in the states where they operate.   What’s next? You can read the full article here: Four Oaks Bank agrees to […]

Without express consent, that marketing text message can cost you $500-$1,500 a pop and let’s not forget the legal fees in an article titled Curbs on Cellphone Calls Pay Off for Lawyers (WSJ subscription required). What’s confusing is that cell phones operate by their own rules.  The law, known as the Telephone Consumer Protection Act, or […]

According to the Consumer Financial Protection Bureau (CFPB) website, the CFPB is now accepting complaints from borrowers encountering problems with payday loans. The Bureau requests that companies respond to complaints within 15 days. Consumers can submit payday loan complaints to the Bureau about: Unexpected fees or interest Unauthorized or incorrect charges to their bank account Payments not […]

Samuel Gregg makes some great points in American Banker, “Bankers and Processors Are Not Moral Police.” how free do we allow transactions between businesses and customers to be; how do we hold people accountable for their free choices; how far we should go to protect people from self-destructive behaviors; what is the financial sector’s broader […]

Take a look at this article by Lisa Servon titled THE HIGH COST, FOR THE POOR, OF USING A BANK.  It’s good to see the New Yorker taking on both sides of the argument.  The vibe you get is that banks are deceptive and they do not care about their customers.  I can’t fault banks. […]

The Wall Street Journal is reporting JP Morgan Chase is ending their lending relationships with what they perceive “high-risk” industries.  Sources say that this period of heightened regulatory scrutiny is the reason they will scale back lending to pawn shops, payday lenders, check cashers and certain car dealerships. (Sarcasm) Because we all know that the payday […]