{"id":5661,"date":"2016-09-16T18:12:32","date_gmt":"2016-09-16T18:12:32","guid":{"rendered":"https:\/\/losfresnosnews.net\/?p=5661"},"modified":"2016-09-16T18:12:35","modified_gmt":"2016-09-16T18:12:35","slug":"rules-proposed-to-curb-payday-title-loan-abuses","status":"publish","type":"post","link":"https:\/\/losfresnosnews.net\/?p=5661","title":{"rendered":"Rules Proposed to Curb Payday, Title Loan Abuses"},"content":{"rendered":"<div id=\"attachment_5658\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/losfresnosnews.net\/wp-content\/uploads\/2016\/09\/gr-53891-1-1.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5658\" class=\"size-full wp-image-5658\" src=\"https:\/\/losfresnosnews.net\/wp-content\/uploads\/2016\/09\/gr-53891-1-1.jpg\" alt=\"One of the payday lenders responsible for a major portion of customer complaints to the Consumer Financial Protection Bureau, ACE Cash Express, has more than 100 locations in Texas. Photo: lzf\/iStockphoto\" width=\"600\" height=\"357\" srcset=\"https:\/\/losfresnosnews.net\/wp-content\/uploads\/2016\/09\/gr-53891-1-1.jpg 600w, https:\/\/losfresnosnews.net\/wp-content\/uploads\/2016\/09\/gr-53891-1-1-300x179.jpg 300w, https:\/\/losfresnosnews.net\/wp-content\/uploads\/2016\/09\/gr-53891-1-1-405x241.jpg 405w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-5658\" class=\"wp-caption-text\">One of the payday lenders responsible for a major portion of customer complaints to the Consumer Financial Protection Bureau, ACE Cash Express, has more than 100 locations in Texas. Photo: lzf\/iStockphoto<\/p><\/div>\n<p style=\"text-align: center;\"><strong><em>by Mark Richardson<\/em><\/strong><\/p>\n<p align=\"left\"><strong>HOUSTON<\/strong> \u2013 Opponents of payday and car-title lending say they lead to financial abuse of consumers, and <a href=\"http:\/\/uspirgedfund.org\/sites\/pirg\/files\/reports\/USPIRG%20Payday%20Report.pdf\" target=\"parent\">a report supports new federal rules<\/a> to combat the problem.<\/p>\n<p>In the report by the U.S. Public Interest Research Group, researchers analyzed close to 10,000 recent complaints made to the Consumer Financial Protection Bureau. They found that 91 percent involved aggressive debt-collection practices, bank-account closures, and\/or long-term cycles of debt.<\/p>\n<p>Mike Litt, the consumer program advocate with the U.S. PIRG said payday lending is structured to set consumers up to fail.<\/p>\n<p>\u201cThe borrower is using their uncashed check as collateral, and they have a short amount of time to pay that off,\u201d he said. \u201cAnd there are a lot of people out there that can\u2019t afford that interest, and so that sets them up to re-borrow and take out loan after loan after loan.\u201d<\/p>\n<p>The report also found that around 15 companies accounted for more than half the complaints, many charging triple-digit interest rates. The report said some of the biggest offenders are doing business under the names CashNetUSA, NetCredit, Check \u2018n Go, and ACE Cash Express.<\/p>\n<p>CashNetUSA and NetCredit are both online lenders. Check \u2018n Go has a few Texas locations; ACE Cash Express has more than 100 across the state.<\/p>\n<p>Consumer advocates say the federal government should adopt a rule that requires lenders to determine, in advance, a borrower\u2019s ability to pay the loan and afford such necessities as food and housing. Litt said the average annual income of a payday loan customer is about $27,000.<\/p>\n<p>\u201cWe\u2019re talking about people who are already working to make ends meet and then, they get stuck in a debt trap,\u201d he added.<\/p>\n<p>The public comment period on the new rule ends on October 7th.<\/p>\n<p>The online complaint form can be found <a href=\"http:\/\/stoppaydaypredators.org\/economicintegrity\/\" target=\"parent\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>by Mark Richardson HOUSTON \u2013 Opponents of payday and car-title lending say they lead to financial abuse of consumers, and a report supports new federal rules to combat the problem. In the report by the U.S. Public Interest Research Group, researchers analyzed close to 10,000 recent complaints made to the Consumer Financial Protection Bureau. They [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":5658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-5661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-state"],"_links":{"self":[{"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=\/wp\/v2\/posts\/5661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5661"}],"version-history":[{"count":1,"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=\/wp\/v2\/posts\/5661\/revisions"}],"predecessor-version":[{"id":5662,"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=\/wp\/v2\/posts\/5661\/revisions\/5662"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=\/wp\/v2\/media\/5658"}],"wp:attachment":[{"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/losfresnosnews.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}