payday lending

If a debt collector calls and threatens to sue or have you thrown in jail unless you immediately authorize a payment from a bank account, hang up because it's a scam, says Illinois Attorney General Lisa Madigan. Madigan has issued a consumer alert warning people to be on the lookout for scammers...

Even after it was determined payday lending was unconstitutional in Arkansas, two companies allegedly couldn't resist marketing the high-interest loans online to Arkansas consumers. Arkansas' attorney general sued both companies -- Arrowhead Investments, Inc. and Galaxy Marketing, Inc. -- and...

A Nevada company that used interactive websites to make payday loans has agreed to refund West Virginia consumers a total of $305,446 to settle a lawsuit brought by the state attorney general's office. Payday loans typically charge high interest rates for short-term loans -- rates that can add up...

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."

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?

Phony debt collectors are harassing Ohioans for repayment of payday loans consumers never borrowed, the Ohio Attorney General is warning. The collectors pretend to be from the legitimate Kentucky-based company, U.S. Cash Advance. "They're very aggressive debt collectors," said Kim Kowalski,...

Being in a financial tight spot is fraught with difficulty, but there are a few options to consider. Active initiatives are now available from both governmental and nonprofit groups.

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.

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."

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.