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 banking institutions is meant to manage payday loan providers across their state but an review unearthed that the agency does not protect borrowers from getting struck with extortionate costs or even to stop the industry from doing incorrect lending techniques.

Legislative Auditor Daryl Purpera’s report points out that from Jan. 1, 2010, to June 30, 2013, the regulating agency issued more than 8,300 citations to loan providers but failed to impose any charges for violations of state regulations. Rather, it issues purchases that lenders don’t have to obey because OFI doesn’t follow through on its instructions to see if customers had been released refunds whenever violations happened.

Maybe maybe Not forcing loan providers to follow proper techniques you could end up exactly exactly what the report calls a “cycle of debt.”

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