Inland Empire Progressive

 Seven years after Congress banned payday-loan companies from charging exorbitant interest rates to service members, many of the nation’s military bases are surrounded by storefront lenders who charge high annual percentage rates, sometimes exceeding 400 percent. The Military Lending Act sought to protect service members and their families from predatory loans. But in practice, the law has defined the types of covered loans so narrowly that it’s been all too easy for lenders to circumvent it. Full Story here and more here.

  Lawmakers Push Payday Lender Bill House lawmakers are pushing new legislation that would allow nonbank lenders, including payday lenders, to choose to operate under a federal charter instead of following different state laws. Backers of the measure say it would help consumers who are unable to obtain affordable credit from traditional sources. Introduced by Reps. Blaine Luetkemeyer (R-Mo.) and Joe Baca (D-Calif.), the bill would allow the payday loan industry to circumvent rules enforced by the Consumer Financial Protection Bureau. Instead, nonbank lenders that received a federal charter would be under the supervision of the Comptroller of the Currency. However, the proposal would prohibit loan periods of less than one month; and firms could not make loans that they do not believe consumers can pay back. But consumer advocates say the law would not ban predatory lenders from charging excessive fees and other unscrupulous practices. The legislation would actually block regu...

Full Story Excerpts: Joe Baca weakens regulation of Payday Lending Industry   Rep. Luis Gutierrez (D-Ill.), chairman of the subcommittee with authority over consumer credit issues, had once advocated extending to all Americans an effective ban on payday lending for military personnel that Congress passed in 2006. By last year he had scaled back, urging an amendment that would have limited to six the number of loans a borrower could receive in a year. Gutierrez’ less-restrictive amendment died when Democrats including Rep. Alcee Hastings (D-Fla.), threatened to vote against the entire consumer protection act if the payday provision was included. It also faced opposition from Rep. Joe Baca (D-Calif.), who countered Gutierrez with an amendment the industry regarded as favorable because it had the potential to open payday lending to new markets. Baca said in a statement last year that while "fly by night lenders" should be banned, he wanted to “ensure that ...