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Category: Pay Day Loans

British Pay Day Lender Used ‘Fake Lawyers’, Says Report

British Pay Day Lender Used ‘Fake Lawyers’, Says Report

“Fake Lawyers Used by UK Payday Lender to Chase Debt” is the headline on a recent Claims Journal article, which begins by stating that “Regulators have ordered Britain’s biggest payday lender to pay 2.6 million pounds ($4.4 million) in compensation to tends of thousands of people for unfair debt collection practices.” Such practices included sending letters “from non-existent law firms to customers in arrears, threatening legal action if they did not pay their debts” and, sometimes charging customers “for administration…

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Article’s Author Recalls That ‘In A Town Full Of Hustlers, Prostitutes, and Gamblers, The Profession They Looked Down On Was Loan Sharking”

Article’s Author Recalls That ‘In A Town Full Of Hustlers, Prostitutes, and Gamblers, The Profession They Looked Down On Was Loan Sharking”

Don McKay, a settlement planning consultant who also has written opinion pieces for a number of outlets and authored other publications, had a few thoughts to share about pay day lenders – and how even bookies (like his father) looked down on the pay day loan business.  Here is the link to “Why My Late Bookmaker Father Would Not Like Payday Lending”.

Payday Loan Transactions Likened To Drug Addiction

Payday Loan Transactions Likened To Drug Addiction

Sometimes the headline sums it up. ” ‘Like a drug’: Payday loan users hooked on quick-cash cycle” is the headline from an NBC News article on the use of payday loans by people who sometimes get into the habit of taking out more and more payday loans. The full article is available here.

The Problem With Military Pension Factoring? For One, It May Be Illegal

The Problem With Military Pension Factoring? For One, It May Be Illegal

In the past week, considerable attention has been focused on the issue of pension factoring.  Sometimes, the news stories and press releases (which can be found at the links at the prior posts here, here, here and here) also have an emphasis about the problem of military pension factoring. Why is there a problem with military pension factoring? Well, putting aside the policy issues, there is one significant problem or potential problem: such transactions might be against the law. An…

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Law School Professor Focuses On Call For Legal Scholarship On Pay-Day Lending And Other ‘Fringe Economy’ Markets

Law School Professor Focuses On Call For Legal Scholarship On Pay-Day Lending And Other ‘Fringe Economy’ Markets

Professor Todd Zywicki has provided some interesting and sometimes provocative commentary on the pay-day lending business, and today he highlights the need for more legal scholarship on the subject. In particular, he points out that the Washington and Lee Law Review recently completed a symposium on "Regulation in the Fringe Economy" and the law review has now issued a call for papers on "the vexing legal and social issues created by lenders on the fringes of the economy who offer payday,…

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Maryland Court Describes Credit Repair Law’s Connection With Pay Day Lending, Rejects Application To Tax Preparation

Maryland Court Describes Credit Repair Law’s Connection With Pay Day Lending, Rejects Application To Tax Preparation

Does a Maryland law aimed at the "credit repair business" apply to tax preparation services?  No, says the Maryland Court of Appeals in a decision issued yesterday in Gomez v. Jackson Hewitt, Inc., — A.3d —-, 2011 WL 1167189 (Md. App. Ct. 2011). In reaching its decision, the court described its views on the law, which was initially enacted to protect individuals "from credit repair agencies who offered to ‘fix’ their credit rating, or to obtain loans for the credit impaired customer, in exchange…

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Comments about Pay-Day Lending, Unintended Consequences, and Montana’s New Law

Comments about Pay-Day Lending, Unintended Consequences, and Montana’s New Law

Here, from Volokh Conspiracy commentator Todd Zywicki, is a post about Montana's new pay-day lending law.  The post is entitled "Non-Traditional Lenders Shutting Down in Montana."  Professor Zywicki teaches at George Mason University School of Law.  Professor Zywicki indicates that the unintended consequences of the law are that, rather then eliminate the unwanted pay-day lenders in favor of "responsible" lenders, the law has eliminated all such lenders. Given the restrictions in the law, one possibility is that this was not…

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Usury from the 30,000-Foot-View

Usury from the 30,000-Foot-View

On occasion, secondary insurance market matters involve some question relating to usury, and in particular whether a secondary market transaction is usurious. Panning back to take the 30,000-foot-viewof usury is UCLA School of Law Professor Stephen Bainbridge, who writes here about whether usury is a "core feature" of modern society – and further on various perspectives on usury's place in historical and religious traditions.