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 Posted: Wed Sep 19, 2007 10:23 am Subject: ***H.R. 2871 The Payday Loan Reform Act of 2007
Latest Blog Post : http://frogpatch.yesdebtfree.org |
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For any of you, like myself, who are interested in putting a halt to the predatory lending practices of payday lenders, the above bill needs your support. It is still in the development stages and the agency representing the payday lenders has already spent hundreds of thousands of dollars lobbying against it. I urge you to write/email/call your representatives in support of this bill. You can google "H.R. 2871" and read about its progress. It is not likely that it will pass as a stand alone bill but might get through as part of a larger bill. There are people on our side and we must let them know that we support them! Goudah, you are great for digging info and I am sure you will have much to add.
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frogpatch
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Posted: Wed Sep 19, 2007 10:25 am Subject:
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Yes! Everyone needs to write to their state reps in support of this bill!
Its intent?
| Quote: | | To amend the Truth in Lending Act and the Federal Deposit Insurance Act to prohibit payday loans based on checks drawn on, or authorized withdrawals from, depository institutions and to prohibit insured depository institutions from making payday loans, and for other purposes. |
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goudah2424
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Posted: Wed Sep 19, 2007 10:25 am Subject:
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| Quote: | A BILL
To amend the Truth in Lending Act and the Federal Deposit Insurance Act to prohibit payday loans based on checks drawn on, or authorized withdrawals from, depository institutions and to prohibit insured depository institutions from making payday loans, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Payday Loan Reform Act of 2007'.
SEC. 2. PROHIBITION ON PAYDAY LOANS BASED ON CHECKS DRAWN ON, OR AUTHORIZED WITHDRAWALS FROM, DEPOSITORY INSTITUTIONS.
Section 128 of the Truth in Lending Act (15 U.S.C. 1638) is amended by adding at the end the following new subsection:
(e) Prohibition on Payday Loans Based on Checks Drawn on, or Authorized Withdrawals From, Depository Institutions-
(1) IN GENERAL- A creditor may not make a payday loan to any person, if the creditor knows or has reasonable cause to believe that--
(A) any personal check or share draft that the creditor receives from the person in exchange for the loan is drawn on a depository institution; or
(B) any account that will be debited in exchange for the loan is a transaction account or share draft account at a depository institution.
(2) DEFINITIONS- For purposes of this subsection, the following definitions shall apply:
(A) DEPOSITORY INSTITUTION- The term `depository institution' has the same meaning as in section 19(b)(1)(A) of the Federal Reserve Act.
(B) PAYDAY LOAN- The term `payday loan' means any transaction in which a short-term cash advance is made to a consumer in exchange for--
(i) the personal check or share draft of the consumer, in the amount of the advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or
(ii) the authorization of a consumer to debit the transaction account or share draft account of the consumer, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.'.
SEC. 3. PROHIBITION ON INSURED DEPOSITORY INSTITUTIONS MAKING PAYDAY LOANS.
Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following:
(y) Prohibition on Insured Depository Institutions Making Payday Loans-
(1) IN GENERAL- An insured depository institution may not make or extend--
(A) any payday loan, either directly or indirectly; or
(B) any loan or credit to any other lender for purposes of financing a payday loan or refinancing or extending any payday loan.
(2) PAYDAY LOAN DEFINED- For purposes of this subsection, the term `payday loan' means any transaction in which a short-term cash advance is made to a consumer in exchange for--
(A) the personal check or share draft of the consumer, in the amount of the advance plus a fee, where presentment or negotiation of such check or share draft is deferred by agreement of the parties until a designated future date; or
(B) the authorization of the consumer to debit the transaction account or share draft account of the consumer, in the amount of the advance plus a fee, where such account will be debited on or after a designated future date.'.
SEC. 4. PENALTIES AND REMEDIES.
(a) Contract Void- Any credit agreement, promissory note, or other contract prohibited under any amendment made by this Act shall be void from the inception of such agreement, note, or contract.
(b) Clarification of Liability- Section 130(a) of the Truth in Lending Act (15 U.S.C. 1640(a)) is amended by inserting after the penultimate sentence the following new sentence: `Any creditor who violates section 128(e) with respect to any person shall be liable to such person under paragraphs (1), (2) and (3).
(c) Preservation of Other Remedies- The remedies and rights provided under any amendment made by this Act are in addition to and do not preclude any remedy otherwise available under law to the person claiming relief under any provision of law, including any award for general, consequential, or punitive damages.
SEC. 5. EFFECTIVE DATE.
The amendments made by this Act shall take effect at the end of the 30-day period beginning on the date of the enactment of this Act and shall apply to all loans initiated on or after such date and to any extension or renewal of loans made on or after such date. |
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How I make some extra cash
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goudah2424
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frogpatch
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Posted: Wed Sep 19, 2007 10:56 am Subject:
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You found it! I was just adding the info to your post! 
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goudah2424
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Posted: Wed Sep 19, 2007 11:12 am Subject:
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Thats the whole bill. I sent an email to my Senator Martinez! I will get Bill Nelson on tomorrow's lunch break!
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frogpatch
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Morningstarr430
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Lukeskywalker
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Posted: Wed Sep 19, 2007 2:39 pm Subject:
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Morningstar - The whole bill is posted above . . .
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goudah2424
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Posted: Wed Sep 19, 2007 3:49 pm Subject:
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Here's the problem --- this Act defines a payday loan as being a short-term cash advance in exchange for either a post-dated check or ACH authorization. But this act does not define "short term."
Here's the problem we have in Illinois. Our IL Payday Loan Reform Act in 2005 tried to define a payday loan as being any loan of 120 days or less that is over 36% APR. So what did the payday stores start doing -- they came out with their so-called "installment loans" that were for 130-days. Because they weren't 120 days or less, they didn't fit the definition of a PDL and so they don't have to follow the new laws.
This bill definitely needs some better languange in it -- otherwise you will find yourself signing 130-day 500% loans instead of 14-day 500% loans.
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DebtCruncher
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Posted: Wed Sep 19, 2007 3:51 pm Subject:
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Very true . . . .
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goudah2424
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Posted: Wed Sep 19, 2007 3:51 pm Subject:
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Unfortunatly, I would guess that no matter what law they put in place, there will always be some way to get around them.
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goudah2424
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Posted: Thu Sep 20, 2007 7:22 am Subject:
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The lobby is so powerful that this law will probably get watered down if it passes. That is why we should write! The legitimate storefronts such as Amscot and Ace Cash stand to lose a lot here so they will fight tooth and nail!
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frogpatch
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Posted: Thu Sep 20, 2007 7:37 am Subject:
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I so doubt it will pass too . . . . A lot of banks now offer "cash advances" on your direct deposit, and they would fight to keep that revenue stream too.
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goudah2424
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Posted: Thu Sep 20, 2007 9:07 am Subject:
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Where exactly is this bill in the pipeline? Is it still in committee? And if so, what committee? And if prelim talks are starting here, then Debtcruncher is exactly right--better language IS needed and things need to be spelled out.
Let's also spell out what kinds of advances we are talking about here. Are we speaking of PDL's taken out at just storefronts? Where does that lead the IPDL's, who are going to say they aren't bound by the laws anyway, especially the offshore ones?
Would direct deposit advances be covered?
And any regulation is better than what we have now, which is zip, so I will email Ellen Tauscher, my congressperson, to tell her get behind it.
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kscornell
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Posted: Thu Sep 20, 2007 9:22 am Subject:
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Bill Status
Sponsor: Rep. Tom Udall [D-NM]show cosponsors (3)
Cosponsors [as of 2007-08-26]
Rep. Keith Ellison [D-MN]
Rep. Luis Gutiérrez [D-IL]
Rep. Janice Schakowsky [D-IL]
Cosponsorship information sometimes is out of date. Why?
Bill Text: - Full Text
Status: Introduced - Jun 26, 2007
Scheduled for Debate -
Voted on in House -
Voted on in Senate -
Signed by President -
This bill is in the first step in the legislative process. Introduced bills go first to committees that deliberate, investigate, and revise them before they go to general debate. The majority of bills never make it out of committee.
Last Action: Jun 26, 2007: Referred to the House Committee on Financial Services.
Show All Related Votes
Committee Assignments
This bill is in the first stage of the legislative process where the bill is considered in committee and may undergo significant changes in markup sessions. The bill has been referred to the following committees:
House Financial Services
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How I make some extra cash
I earn at least $20 extra every month doing offers. And you don't have to pay a cent.
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goudah2424
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