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UK authorities propose strict new regulations on payday lenders

LONDON - British authorities have proposed new regulations for payday lenders — the firms that offer short-term loans at sky-high interest rates. Under restrictions unveiled by the Financial Conduct Authority on Thursday, payday lenders will be required to carry out affordability checks on borrowers and restrict the number of times a loan can be rolled over. The regulator says it will also ban misleading advertisements. The regulations are set to take effect next year after a consultation process.

N.Y. Attorney General settles with payday loan companies

NEW YORK (Reuters) - New York Attorney General Eric Schneiderman's office said on Monday it had reached settlements with five companies over charges of violating the state's usury and licensed lender laws through the collection of so-called payday loans.

Manitoba's Public Utilities Board issues review of payday loan industry

WINNIPEG - The Public Utilities Board wants the Manitoba government to investigate options to regulate payday loan-like products offered by unlicensed and unregulated lenders, including those on the Internet. The recommendation comes in a review by the PUB of the province’s payday loan industry. The PUB suggests new borrowing disclosure obligations and certain data collection provisions. Overall, the PUB doesn’t agree with lenders who suggest rates be increased and that competition will drive the market rate down.

Ontario to review Payday Loans Act in light of new technologies

TORONTO - The provincial government says it will launch a review of the Payday Loans Act adopted in 2008 to better protect customers. The review is in response to technological changes in the payday loan industry. They include the growth of online transactions, smartphone-enabled loan approvals and new forms of high-cost, short-term loans. The review will also explore ways to track payday loans and ensure companies are compliant with existing regulations.

Payday lender Cash Store Financial sees loss almost double to $6.9M in Q3

EDMONTON - The Cash Store Financial Services Inc. (TSX:CSF) reported Wednesday that its third-quarter loss almost doubled as overall revenue fell five per cent. The payday loan company says its net loss in the three-month period ended June 30 was $6.9 million or 39 cents per share, compared with $3.6 million or 20 cents in the same year-earlier period. Loan and other revenue totalled $46.3 million, down from $48.7 million, while same branch revenue rose to $243,000 from $240,000.

New York State sues Internet lender over 'exorbitant' loan rates

By Karen Freifeld NEW YORK (Reuters) - New York Attorney General Eric Schneiderman sued an online lender on Monday that he accused of "scamming" consumers with interest rates so high that a borrower could eventually shell out more than $4,900 to repay a $1,000 loan. The company, Western Sky Financial LLC, claims ties to the Cheyenne River Sioux Tribe in South Dakota and immunity from state and federal law.

Tough policy causes more money lenders to shut down

SEOUL, Aug. 8 (Yonhap) -- More money lenders in South Korea are closing down their businesses as the country's regulator has imposed a stiffer policy on the industry, data showed Thursday. The number of money lenders registered with the regulatory office here stood at 9,910 at the end of July, down 9 percent from 10,895 tallied as of end-December last year, according to the Consumer Loan Finance Association.

Justice Department targets banks serving online payday lenders: WSJ

(Reuters) - The U.S. government has issued subpoenas to banks and other companies that handle payments for an array of questionable financial ventures, including online payday lenders, the Wall Street Journal reported, citing Justice Department officials. The journal did not identify the banks and other companies to whom subpoenas had been issued.

UK archbishop to investigate Church of England investment fund links to payday loan firm

LONDON - The relationship between Christianity and capitalism is complicated, the archbishop of Canterbury said Friday, admitting he was embarrassed by revelations that the Church of England indirectly invested in a payday loan firm he had pledged to put out of business.

Church of England declares war on payday loans company

Church of England leader Justin Welby has told a company offering short-term high-interest loans that the church wants to "compete" it out of existence by promoting not-for-profit credit unions. Welby, who as Archbishop of Canterbury is spiritual leader of the world's 85 million Anglicans. He said in an interview published late on Wednesday that he had delivered the message to Errol Damelin, chief executive of the British payday lender Wonga.
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