Category Archives: Native American Payday Loans

Let me make it clear about pay day loan watchdog does not have teeth

Let me make it clear about pay day loan watchdog does not have teeth

BATON ROUGE – Louisiana’s workplace of finance institutions is meant to regulate payday loan providers across their state but an audit unearthed that the agency does not protect borrowers from getting hit with extortionate charges or even stop the industry from participating in incorrect financing techniques.

Legislative Auditor Daryl Purpera’s report points out that from Jan. 1, 2010, to June 30, 2013, the agency that is regulating more than 8,300 citations to loan providers but would not impose any charges for violations of state regulations. Alternatively, it issues orders that lenders don’t have to obey because OFI doesn’t follow through on its sales to see if customers had been granted refunds when violations took place.

Not lenders that are forcing follow proper practices could result in exactly what the report calls a “cycle of debt.”

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