Abusive Lending and Asset Development
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Payday Lending
Payday lending was authorized in Oklahoma under the "Deferred Deposit Lending Act" that took effect on September 1, 2003. Since then, hundreds of locations have sprung up making high-cost, short-term loans.
SB 807 Payday Loan Reform Bill: CAP Factsheet (February 2007) [NEW]
Center for Responsible Lending: Payday Lending "Debt Trap" Costs Americans $4.2 billion Annually (Dec. 2003)
Consumer Federation of America Launches Payday Loan Information website [NEW]
Payday Loan Database Report (Jan. '06) [NEW]
Issue Brief: Military Payday Lending: Payday Loans Threaten Troop Morale (Feb. '06)
Issue Brief: Oklahoma Data Shows Chronic Borrowing With Payday Loans (Nov. '05)
Center for Responsible Lending: Payday Lenders Target the Military: Evidence Lies in Industries Own Data (Sept. '05)
Military Payday Lending in Oklahoma
Payday Issue Brief: Fall 2004
CAP's Consumer Guide to Payday Lending
CAP's Consumer Guide to Payday Lending (Spanish)
Federal Trade Commission: Payday Loans = Costly Cash
BetterBudgeting.com: The High Cost of Fast Cash
Consumer Federation of America: Internet-Based Payday Lending Pose High Risks
NCLC/CFA: In Harm's Way - At Home: Consumer Scams and the Direct Targeting of America's Military and Veterans
Center for Responsible Lending: Payday Lending Basics
National Consumer Law Center: Payday Loans - A Form of Loansharking
Payday Lending in the News
Payday Lending Takes Advantage of the Poor (Muskogee Phoenix, Dec. 7, 2005)
Payday Loan Industry Shows to be a Debt Trap (The Journal Record, Dec. 5, 2005)
Payback Time: High Interest Rates and Short Terms Have a Way of Adding Up. And Then it's Payback Time (Tulsa World, Nov. 28, 2005)
Policies Against Lenders Varied (Tulsa World, Nov. 28, 2005)
Small Loans, Big Business(Tulsa World, Nov. 27, 2005)
Holiday Season Big for Small Loan Companies(Tulsa World, Nov. 27, 2005)
Daily Oklahoman (December 19,2004):Payday loan shops makes millions
Tulsa World (June 5, 2004): Switzer wants loan bill OK'd
Tulsa World (May 31, 2004):Payday for Lenders
Tulsa World (May 27, 2004):House advances payday-loan legislation
Daily Oklahoman Editorial (May 24, 2004): Loan Law Keeps Counselors Busy
Tulsa World (May 11, 2004):Loan Explosion
Tulsa World (May 7, 2004):Payday applicants lose hope
Daily Oklahoman (April 9, 2004): House approves payday loan restrictions bill
Tulsa World (March 29, 2004): Payday loan wait proposed
Daily Oklahoma (March 27, 2004): State bill focuses on "payday" loans
Daily Oklahoman (March 12, 2004): Senate OKs payday loan delay
Daily Oklahoman (Feb. 24, 2004): State bankrupticies double as personal debt soars (expert says payday loans likely to make problem worse)
Tulsa World Editorial (Feb. 11, 2004): Payday Loans - Nightmare Law Needs Fixing
Tulsa World Article (Feb. 10, 2004): Payday Loan Law's Repeal Sought
Tulsa World Op-Ed (Feb. 8, 2004): Payday Lending Not What it Seems
Tulsa World Article (Jan. 18, 2004): Payday loans only postpone problem
Tulsa World Editorial (Dec. 19, 2003): New Payday Loan Law Already a Mess
Tulsa World Article (Dec. 18, 2003): New Payday Loan Law Has Counselors Feeling Holiday Pinch
Daily Oklahoman Article (Nov. 17, 2003): Payday Loans Bring Big Business
Predatory Mortgage Lending
A growing number of Oklahomans have found themselves victims of certain predatory home mortgage lenders who use unscrupulous lending practices to strip homeowners of their equity and place them at risk of foreclosure. CAP has issued a report on predatory lending in Oklahoma titled Stealing the American Dream. Below you will also find additional links for more information on predatory lending including examples of what other state/local governments are doing to better protect their citizens.
Woodstock Institute There Goes the Neighborhood Report: June 2005
National Consumer Law Center Foreclosure Rescue Scams Report: June 2005
Predatory Lending Issue Brief: Fall 2004
ACORN: Separate and Unequal 2004 - Predatory Lending in America
GAO Report (Jan. 2004) - Federal and State Agencies Face Challenges in Combating Predatory Lending
CAP Summary: How New GAO Report on Predatory Lending Informs the Debate in Oklahoma
HB 2711 is Needed to Adequately Protect Oklahoma's Homeowners (2004)
Text of HB 1574, Oklahoma's Current Anti-Predatory Mortgage Lending Law
Testimony of Uriah King, Center for Responsible Lending: Interim Study on Predatory Mortgage Lending, Oklahoma House of Representatives (Nov. 6, 2003)
North Carolina's Anti-Predatory Lending Law Cuts Abuses
One Page Analysis of The Major Studies on North Carolina's Anti-Predatory Lending Law
Power Point Presentation on Exploitive Lending Practices (Predatory Mortgage Lending and Payday Lending)
Stealing the American Dream: Predatory Lending in Oklahoma - CAP Report, May 2003
Executive Summary of Stealing the American Dream
One Page Issue Briefs on Predatory Lending
HUD/U.S. Treasury Task Force Report on Predatory Lending (2000)
ACORN: Predatory Lending News
Oklahoma Homeowners Will Benefit from Household Settlement
Southern Exposure magazine expose on Citigroup's Exploitive Subprime Lending Operations
Bankrate.com: Warning SIgns of Predatory Lending
Predatory Mortgage Lending In the News
Daily Oklahoman:Victim's story draws attention to predatory lending practices
Daily Oklahoman:Falling Prey
Fannie Mae Press Release on the Oklahoma Anti-Predatory Lending Initiative
Daily Oklahoman:Program to assist vicitms of Predatory Mortgages
Tulsa World: New State Anti-Predatory Mortgage Lending Law Gets a Second Glance
Oklahoma House of Representatives Press Release: Interim Study Examines Predatory Mortgage Lending
Refund Anticipation Loans
Refund anticipation loans, commonly known as RALs, are short-term loans originated by tax preparation and financial service companies based on anticipated income tax refunds. RALs are dangerous because they are very expensive and have an especially costly impact on low-income borrowers receiving the Earned Income Tax Credit. Link below to AARP's Tax-Aid website to find a location near you that offers free tax assistance to help taxpayers avoid RALs lenders and their costly services and loans. Also find information from the Consumer Federation of America (CFA) and the National Consumer Law Center (NCLC) on the high costs of RALs and other links for additional information.
NCLC/CFA 2005 RAL Report [NEW]
NCLC/CFA 2005 RAL Press Release [NEW]
NCLC: Consumer Guide to RALs (Brochure)
Refund Anticipation Loans Issue Brief: The High Cost of Quick Cash - Fall 2004
AARP's Tax-Aid Site Locator
CFA & NCLC (2004): All Drain, No Gain: RALs Continue to Sap Tax Dollars of Low-Income Americans
CFA: Don't Pay Triple Digit Interest to Borrow on Your Own Tax Refund
NCLC: Refund Anticipation Loan Resources
Bankrate.com: Refund Anticpation Loans Can Carry a High Price
Financial Literacy and Education
A number of government, non-profit and industry organizations have websites that provide extensive information aimed at promiting financial literacy and financial education.
Oklahoma Council on Financial Education
JumpStart Coalition for Financial Literacy
US Treasury: Office of Financial Education
Financial Literacy and Education Commision: Mymoney.gov
360 Degrees of Financial Literacy Resource Center (AICPA)
Mortgage Bankers Association Home Loan Learning Center
Debt and Credit
Growing attention and concern is focusing on America's rising debt levels and the explosion of credit and borrowing. See these resources for information and policy proposals on this subject.
Generation Broke: The Growth of Debt Among Young Americans
Annie E. Casey: Access to Affordable and Acessible Credit
Faces of Debt: Students, People of Color, and Older Americans
"The Two-Income Trap: Why Middle-Class Mothers and Fathers Are Going Broke" (from Amazon.com)
DEMOS: Debt and Assets Clearinghouse
Consumer Federation of America: Resources on Credit and Debt
Assets and Wealth Development
A great many families have little or nothing in the way of assets, savings and wealth. See the reports below for information on assets and savings and proposals for encouraging greater wealth development among low- and modertate-income Americans.
Retirement Security Project The Effect of Asset Tests on Saving [NEW]
Retirement Security Project Protecting Low-Income Families' Savings [NEW]
Oklahoma Coalition of Consumer Advocates
The Oklahoma Coaltion of Consumer Advocates (OCCA) is a newly formed non-profit organization whose mission is to promote fair and equitable lending practices and bring about economic justice for all Oklahomans. Membership in OCCA is open to consumer organizations, advocates, and concerned citizens who share a common goal of stopping abusive lending in Oklahoma. Link below to OCCA's website or download OCCA's membership form directly
Oklahoma Coalition of Consumer Advocates website
Membership Form
Tulsa World: OCCA Forming to Fight Lending Abuses
The Daily Oklahoman: OCCA Warns of the Dangers of Payday Lending
Oklahoma Consumer Issue Updates
CAP offers regular updates on news and developments on consumer protection issues in Oklahoma and nationally, focused on abusive lending practices (predatory mortgage lending, payday lending, Refund Anticipation loans, and others) and other issues related to financial services, wealth, and assets. Link below to an archive of consumer issue updates. Links to articles in older Oklahoma Consumer Issue Updates may no longer be active.
Update #33: December 7 '05 [NEW]
Update #32: November 10 '05
Abusive Lending
Below are additional links to national and state organizations and agencies that provide research and advocacy on abusive lending issues.
The Oklahoma Department of Consumer Credit
Debt and Assets Clearing House
Association of Community Organizations for Reform Now (ACORN)
Center for Responsible Lending
Consumer Federation of America
The Woodstock Institute
Consumers Union
US Housing and Urban Development (HUD)