Payday Lending

4 Tips to Avoid the Payday-Loan Trap

This week JPMorgan Chase announced protections against payday lenders. But big banks can't stop the cycle of devastation payday loans can cause. Only you can, and here's how.

Would You Take a Payday Loan from Octomom?

"Octomom" Nadya Suleman has taken on some fairly sleazy jobs to support her super-sized family: reality TV star, stripper, porn actress. But this may be a new low. She's out to become America's most fecund financial adviser, shilling for a payday lending company called OctoLoan.

Ex-Google Exec Finds a New Way to Do Payday Lending

Google's ex-CIO has moved from the world of Web searches to the world of high-interest, short-term lending. He says ZestCash.com offers an innovative way to help the poorest borrowers avoid financial emergencies. But is this just a slick veneer putting a shine on the classic payday lending business?

More Southerners Are Off the Banking Grid

More people in Southeast don't have bank accounts than in any other part of the country. The state of Mississippi leads the country with more than 16% of households using cash-and-carry for all their transactions. That's a situation that can keep families from climbing the ladder of success.

Predatory Lenders Put U.S. Soldiers in the Crosshairs

Members of America's military face threats around the world every day, but it's a domestic threat that has the top brass on the offensive on the home front -- predatory lenders. Here's how the Department of Defense is fighting back.

How 'Short-Term' Payday Loans Cause Long-Term Woes

A new report from the Center for Responsible Lending paints a seriously depressing picture of the damage the payday loan industry wreaks on its customers. What's worse is that the report actually understates the grim reality facing payday borrowers today.

America's Thriving Poverty Business

Business is booming for companies that reap profits from the growing number of Americans with their backs to the financial wall. Former New York Times reporter Gary Rivlin's new book Broke, USA dives into the world of pawnshops, payday lenders and the rest of the "poverty business."

Should NYU Have Higher Ethics Than a Payday Lender?

The New York Times recently looked at the plight of Cortney Munna, a graduate of New York University struggling with nearly $100,000 in student loans, and asked: Should schools abet students in the process of financial self destruction, or should they follow a higher purpose?

Costly Cash: The Feds Won't Protect You From Payday Loans

In the wake of the mortgage loan mess and financial crisis, Congress was hot to regulate this business. But the federal-level effort has lost steam, partly because lawmakers seem to have come around to the industry's point of view rather than the consumer's.

Costly Cash: In Texas, Towns Try Zoning Out Payday Lenders

Several have taken it upon themselves to restrict money stores. Most have passed zoning laws that prevent them from expanding into new locations in their city without a special permit. Says Brownsville's mayor: "Our most vulnerable citizens are easy prey for these legal loan sharks, and we want to protect our citizens by regulating them."

How a Retiree Wound Up With a 375% Loan

Preston White needed $5,000 to help his daughter relocate after serving in Iraq. Denied by his bank, he got his cash (but only $4,000) at his local Cash Store via a one-month loan. With fees and interest, he'd need to repay %5,268.50 -- giving him a 375% APR. But that's not the end of the story.

Costly Cash: The Rise of Pawn Shops and Payday Lenders

Millions of Americans are facing the worst money problems imaginable, but these same conditions are a boon for pawn shops and payday lenders. Borrowers get short-term loans at these stores using some asset as collateral -- their paycheck, or a car, or jewelry. That access to cash helps, but it comes at a cost that can be crippling.