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Lender Capital One Financial says its quarterly profit edged up even as income declined

MCLEAN, Va. - Capital One Financial Corp. says its first-quarter profit edged up, even as income it receives from lending slipped. After the market closed Wednesday, McLean, Va.-based Capital One reported net income of $1.14 billion, or $1.96 per share, for the three months ending March 31. That compares with net income of $1.04 billion, or $1.77 per share, in the same period of 2013. Revenue dipped 3 per cent to $5.37 billion from $5.55 billion. On average, analysts expected earnings of $1.69 per share on $5.45 billion in revenue, according to the data provider FactSet.

Bank of Spain denies it plans lender stress tests

MADRID (Reuters) - The Bank of Spain on Tuesday denied a newspaper report which said the central bank planned to subject 16 Spanish lenders to stress tests ahead of Europe-wide health checks. "There is no pre-test," a spokesman at the central bank said following a report in the Cinco Dias newspaper which said the Bank of Spain would conduct preliminary studies on lenders ahead of wider industry checks expected later this year. (Reporting by Paul Day and Sarah White; editing by Jason Neely)

Report: For about half of payday loans, borrowers pay more in fees than original amount

WASHINGTON - About half of all payday loans are made to people who extend the loans so many times they end up paying more in fees than the original amount they borrowed, a report by a federal watchdog has found. The report released Tuesday by the Consumer Financial Protection Bureau also shows that four of five payday loans are extended, or "rolled over," within 14 days. Additional fees are charged when loans are rolled over.

Ontario wants to deny new licences for Cash Store following court judgement

TORONTO - Ontario's Registrar of Payday Loans says it wants to deny new licences to Cash Store Financial Services Inc. (TSX:CSF), saying its decision is based on past conduct by the Edmonton-based company. Under the provincial PayDay Loans Act, the registrar can do this if there are reasonable grounds for belief that the applicant "will not carry on business in accordance with law and with integrity and honesty."

High Court won't hear appeal of Money Mart attempt to derail class action suit

OTTAWA - The Supreme Court of Canada won't hear an appeal in a case where Money Mart sought to derail a class-action suit over payday loans. Two Calgary men, Gareth Young and H. Craig Day, are representative plaintiffs in the class action, which argues that the lender's fees for short-term loans are unlawful. The lender argued that the two men had signed an agreement that they would use arbitration in the event of a dispute and that they would not take part in a class action. The Alberta courts ruled that provincial law allows the men to sue.

NY regulator subpoenas websites to curb payday lending: NYT

(Reuters) - New York State's financial regulator, Benjamin Lawsky, sent subpoenas to 16 lead generator websites that sell sensitive consumer data to payday lenders, the latest development in a broader crackdown on the payday lending industry, the New York Times reported. Government authorities are trying to choke off the supply of borrowers to online lenders that offer short-term loans with annual interest rates of more than 400 percent, the newspaper said.

U.S. regulator fines Cash America over debt collection

By Aruna Viswanatha WASHINGTON (Reuters) - Payday lender Cash America International will refund consumers $14 million and pay a $5 million fine to settle civil allegations that it improperly pursued some customers' debt and overcharged military service members, U.S. regulators said on Wednesday. The enforcement action against Cash America International is the first against a payday lender from the Consumer Financial Protection Bureau, a new regulator created by the 2010 Dodd-Frank Wall Street reform law.

Head of world's Anglicans joins Instagram to push credit unions

LONDON (Reuters) - The Church of England's spiritual leader has joined the photo-sharing site Instagram used by celebrities to reach a wider audience but instead of posting "selfies" he is using the social network to champion credit unions for debt-laden families. In a first for the Church, Archbishop of Canterbury Justin Welby joined 150 million users of the popular site owned by Facebook Inc on Wednesday to urge churches and communities to support their local credit union.

Black colleges push U.S. Congress to revoke student aid changes

By Elvina Nawaguna WASHINGTON (Reuters) - A mere $600 stood between Christian Fair, 20, and his future this semester, when the U.S. Department of Education denied his parents a loan to help pay for his tuition and textbooks. The federal Parent PLUS loan program allows parents of undergraduate students to help pay for their children's college.

Britain tightens regulation of high-interest lenders

Britain on Thursday unveiled measures to curb lenders that offer short-term loans at high rates, with regulators insisting that consumers must be subjected to stricter affordability tests. The Financial Conduct Authority (FCA) said that from April the government would take responsibility for the so-called payday lending industry that on an annual basis is worth about £2.0 billion ($3.23 billion, 2.37 billion euros).
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