News and updates

NPR Marketplace — JPMorgan Chase has announced new policies to limit the ability of online payday lenders to access bank customers’ accounts in order to withdraw improper or unwanted automatic payments.

New York Times — Gov. Andrew Cuomo of New York has warned debt collectors that they could face legal sanctions if they try to collect predatory loans that violate the state’s usury law, which prohibits loans with interest rates above 25 percent.

Time.com — Consumers who use online payday lenders may be taken advantage of twice: first, by the lenders’ triple-digit interest rates that flout state caps, then with fees tacked on by the borrowers’ own banks.

The Guardian — I have a friend who is quite rich. Like a lot of rich people, he’s very careful with his money, by which I mean that he’s constantly shifting it around to make sure it’s maximizing its potential.

Mint Press — The battle over payday loan operations is growing, as America’s largest banks engage with the service, providing the link needed to debit accounts, even in states where payday loan operations are banned.

New York Times — Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.