Payday Loan Times

News About the Ever Changing Payday Advance Industry

Illegal Rollovers of Payday Loans Lead to Revocation of Lender License

Filed under: Nebraska — J.J. Cameron at 6:18 am on Wednesday, September 6, 2006

In Nebraska, it's illegal to rollover payday loans. The law allows for no extension of any kind.

Perhaps Jim Kyles, owner of Fast Money, never read this provision. The Journal Star explains why the cash advance provider has had his license revoked by the Nebraska Department of Banking and Finance.

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According to the article, Fast Money is no longer able to offer new transactions, but it may conclude pending business by collecting on bad credit payday loans that started before its license expired last week, the department said.

The attorney for the payday loan company questioned the department’s authority in the matter, stating the business is entitled to do business under an annual license issued in April. Nevertheless, last week - before the department announced the expiration of what it called a provisional license - it served the company with an order to show cause why its license shouldn’t be revoked, setting a hearing for Oct. 5.

Kyles' lawyer, Terry Barber, believes his client received a notice saying a provisional license had expired, but he still finds no authority for a provisional license in state law.

“I think we’re plowing some new dirt here,” he said.

Mike Cameron, counsel to the Department of Banking and Finance, said the department has a long history of authorizing provisional licenses in the cash of no fax cash loan businesses. The latest action continues months of complex dealings between the state and Fast Money.

Under the current order, Kyles would have no participation in any delayed deposit/no fax payday loan business for five years, the department said. Kyles could not be reached for comment.

Omaha Payday Industry Preys On Less Fortunate

Filed under: Nebraska — Danielle Mason at 11:33 pm on Thursday, July 21, 2005

Omaha, Nebraska — Payday lending services are strewn about the city of Omaha. “It’s modern-day loan sharking, but it’s sanctioned by law at this moment,” said Danielle Nantkes, attorney at Nebraska Appleseed, a non-profit consumer-advocacy firm.

Omaha is home to more than 70 shops, but only four lie west of 108th. Most of these businesses nest east of 84th. Ames Avenue has two shops that offer instant payday loans located in a one-mile stretch, and the city of Bellevue has nine.

Nebraska Appleseed and the Center for Responsible Lenders think it’s time for change. Nantkes said her organization wants to tightly regulate payday lenders. She said payday lenders must clearly and honestly disclose interest rates and that a cap on those rates would be beneficial. Nantkes also promotes legislation that would limit the number of times a customer could acquire a payday loan.

Payday loan services aren’t always predatory. Nantkes stressed the need for a “happy medium.” Their services can be useful if utilized with moderation, she said. However, aggregated use is the blood in the water that brings sharks.