In this section, which is available to TPCA members and non-members alike, we discuss news about our industry.  The stories here are about both title lending and payday advance lending.  Most of our members are interested in both and in many cases the general public and press does not make a distinction between the two. 

Although our primary concerns are events in Alabama, we also focus on events in other states.  We believe that events that occur outside of Alabama may have as much impact on our industry as those that occur within the state.

Important & Breaking News

Updated October 6, 2007 --  Scroll down to read all stories

In Order To Access The Full News Stories On This Site You Must Be A TPCA Member. If You Are Not A Member Click Here For Immediate Access.

• CRL & BANK FEES. October 6, 2007.  The CRL goes after banks and bank fees in this story.  If you go to the CRL site, be sure you click on the links at the right on their web site that talks about their issues.

• LAWSUIT ABUSE October 6, 2007.  See this report from the US Chamber of Commerce regarding lawsuit abuse.  Whew.....thank goodness we're not last in the nation.  We're just 47! Who would have guessed?

• NATIONS CAPITAL EFFECTIVELY BANS PAYDAY LOANS  September 19, 2007.  Washington DC has effectively banned payday loans.  We have several stories about this decision.  The first story is from the Washington Post that covers the vote and the decision.  The second story is from an Ohio paper reporting before the vote.  Ohio is the home of Check N Go who is the target and a "whipping boy" for banning payday loans in DC.  Third, is a story that you will have to search long and hard to find in the mainstream press.  It is from RTO online.  This story sheds light on another important fact about the story -- it turns out the witnesses and former Check N Go employees who testified against Check N Go and the industry are convicted felons.  Not that it mattered much, though.  Go to CFL and click on the Articles tab for more discussion on this story.

• COUNCIL FOR FAIR LENDING (CFL) TO MAKE IMPORTANT PUBLIC ANNOUNCEMENT.  September 19, 2007.  CFL will hold an important web teleconference on Thursday, September 20th  to discuss the roll-out and announcement of CFL's Borrow Smart pro-consumer program.  Go to CFL and click on the Teleconference tab if you wish to register for this important meeting.  It's free and open to all store operators who wish to attend.  If you want to know one of the reasons CFL exists just read the story above.  Please do not think Alabama (or any other jurisdiction) is immune!  Borrow Smart designated stores across the state are expected to be in a unique position under this new program and will help lead the way in our effort to protect consumers and reposition our industry in Alabama.

• GOVERNMENT GAO REPORT FINDS MILITARY DECISION TO BAN PAYDAY AND TITLE LOANS FLAWED!  September 6, 2007.  We could have told them so. But, don't expect to see changes any time soon to the military bill as a result of this highly critical GAO report on the John Warner National Defense Authorization Act.  You can read the news report here and the government report here.  Among the reports findings are that the DOD:

• Used input only from industry critics to formulate the law

• Used limited factual support for their findings

• Did not establish any direct link between the use of certain credit products and  financial problems by military personnel

• Action denies military personnel a credit option

In the meantime, you need to be absolutely sure you have taken the appropriate action to comply with the law.  Non compliance is a federal crime with severe penalties.  Go to the Galese & Ingram newsletter for the latest on compliance.

• JOHN EDWARDS TAKES SWIPE AT PAYDAY LENDERS IN ADVANCE AMERICA'S HOMETOWN.  CALLS FOR NATIONAL LAW.  September 3, 2007.  See story here.

• SOUTH CAROLINA POLITICIANS FILE CLASS ACTION LAWSUIT AGAINST PAYDAY LENDERS   August 28, 2007.  See the full story here.

• NO LENDING TO MILITARY PERSONNEL  August 28, 2007.  As we reported here previously the John Warner National Defense Authorization Act that was passed and signed into law last year prevents, among other things, title and deferred deposit lending to military personnel.  The penalties for violation are severe.  You want to be sure you have adequate documentation and that you are NOT lending to military personnel.  Keep in mind the term "military personnel" covers a broad category of people.  Go here for the latest Galese & Ingram Newsletter to be sure you are following the correct procedure.

• ALABAMA ARISE LAUNCHES PAYDAY LOAN EFFORT -- AND FLOPS!  August 21, 2007.  Read this story in the Montgomery Advertiser about Alabama Arise, an activist group and industry adversary.  It is about their effort to get into the payday loan business.  Go to our CFL web site and click on the Articles tab at the left and read why this story is so very significant for what we are about to do!

• CFSA FIGHTS BACK.  August 3, 2007.  If you only plan on reading one more story in the press about payday loans, read this one and then read the challenge!  Click here to go to CFL and then click on the Articles button on the left.

• PAYDAY & TITLE DECISIONS GO BAD IN TWO STATES.  August 3, 2007.  Two states have recently banned short term loans (payday in both and title in one) -- Oregon & Pennsylvania.  Click on the states to read more.

• BORROW SMART VIDEO PROJECT UPDATE.  August 13, 2007.  Go to the Council For Fair Lending (CFL) and click on the CFL News tab  for the status of testimonial prospects you may have submitted and potential taping dates.

• MEETING WITH SENATE LEADERS.  August 7, 2007.  Michael Sullivan has arranged a meeting with Senate leaders.  Go to News to read about this important meeting.

• BORROW SMART VIDEO PROJECT UPDATE.  August 1, 2007.  We have updated the Council For Fair Lending (CFL) site with the latest on our video testimonial project.  This project is shaping up to be a phenomenal success. Go here and then click on the CFL News button on the left to read about it.  Please be sure to pass this information along to your branches so they will know where we stand as it relates to the names and stories they submitted.

• STATE OF ALABAMA SETTING UP A NEW ONLINE LIEN SYSTEM FOR AUTO TITLES.  August 1, 2007.  The State of Alabama has launched an online title system called ETAPS.  At the moment this is for Designated Agents only (which excludes us).  TPCA has met with the State to discuss how our members can access the system.  Go to News for a complete update of the new system and when and how we can participate.

• ANTI-ARBITRATION BILL INTRODUCED IN US CONGRESS.  August 1, 2007.  Jeff Ingram, our attorney, has brought to our attention a bill in the US Congress that would strip us of our rights to binding arbitration.  If this bill becomes law, the consequences for our industry will be devastating.  If you do not presently use arbitration in all of your agreements you are making a big mistake and you do so at the risk of your business.  You can read the bill here.

• CENTER FOR RESPONSIBLE LENDING & BANK DRAFT FEES.  July 24, 2007.  Go here to see USA Today article about what the CRL thinks about bank overdraft fees.

• SUPREME COURT MAKES DECISION ON WAITES TITLE PAWN CASE!  July 7, 2007.  Go to News for this important decision.

  Updated July, 7th -- Go to News to read new and updated information about this important case.

• ARE COUNTY DA's COLLECTING PAYDAY LOAN CHECKS?.  July 2, 2007.  A TPCA member has been successful in working with two counties in getting the county DA to collect closed account deferred deposit checks.  We believe this is a good sign and want to know about other counties where the DA has worked with payday operators.  It may help convince other DA's to do the same.  Actually, the statute clearly provides for this, but local DA's have not been cooperative.  This member has convinced two county DA's and a big part of the DA's decision was that he (our member) was able to point to another DA in another jurisdiction who was collecting these checks.  Our question to you is, does your county DA collect closed account checks?  If so, please drop us an email by clicking here and give us the name of the DA and the county.  We will report back in a week or so with a list of counties that do collect on closed accounts.  This could be good for everyone.

• END OF LEGISLATIVE SESSION REPORT.  June 20, 2007.  We have posted Michael Sullivan's final legislative report in our Legislative section above.  Go here to read a "blow by blow" description of that last day.

• AN IMPORTANT ARBITRATION DECISION.  June 20, 2007. Our association attorney, Galese & Ingram, has informed us that the Alabama Supreme Court has handed down an important decision with regard to an arbitration case involving TitleMax and a wrongful repossession case.  This is quite an interesting case.  Issues relating to repossession are probably the single most common legal issue our members face.  Go to News and read more and download the decision.  Everyone should read this and, MORE IMPORTANT, everyone should use legally well drafted arbitration agreements in their business.

• THIS LEGISLATIVE SESSION IS OVER FOR US.  June 12, 2007. Although the legislative session has not formally closed, for all practical purposes it is over for us since no new legislation can pass at this point.  Whoever would have thought we would end up as we did back in September of last year and again in March of this year.  As most of you know TPCA worked diligently with the study group in the Alabama legislature that considered new title and deferred deposit legislation. That same study group, consisting of several consumer activist groups and industry groups, will hold meetings over the summer to develop legislation to revise the deferred presentment statute.  At this time we believe the focus will be on payday lending and not title lending -- but it's way too early to know for sure.  This is unusual and has not happened in the seven years we have been around.  It is not a good sign for the next session.  Members can go here for more information.

By the way, if you did not see the "crowning blow" to end the session, just click here. 

We thank each and every one of our members and others who provided help and support.  We clearly could not do this without you.  If you are not a member, now is a great time to join.  If you don't believe our businesses are threatened almost every day you are living on another planet.  Click here to take advantage of our special membership offer while it lasts.  By working together we stand a chance of protecting our businesses -- it is our only option.

• SUPREME COURT TITLE PAWN CASE UPDATE May 18, 2007. Go to News for an update on this critically important case. 

• PAYDAY BILL MEETING IN SENATE COMMITTEE TODAY! May 15, 2007.  Michael Sullivan, our TPCA lobbyist, reports on the decisions made today and how this affects your business.  Go here for the full story or click on the Legislative link above.

• REPORTS OF BANK CLOSINGS -- AGAIN. May 14, 2007.  We have received more reports of bank closings.  This time from Regions Bank which recently merged with AmSouth.  AmSouth is where the problem started almost two years ago.  If you want to read more about this go here.  If you have this problem please drop us an email.  We can't promise help (except what you might read here), but if we get enough reports we may be able to open up this case again.

BANK CLOSING UPDATE.  May 14, PM.  We are receiving many more reports about Regions Bank closing checking accounts. 

• NEW ADVERSE ACTION REPORTED ON PAYDAY LENDING BILLS IN THE SENATE. May 10, 2007.  Michael Sullivan, our TPCA lobbyist, reported yesterday that the special Senate committee chaired by Sen. Byrne planned to introduce his legislation next Tuesday to the committee.  The main provisions of this legislation are:

  • 2% rate per month on payday loans

  • 30 day maximum term for loan

  • Maximum of three loans in any twelve month period

  • Next business day right of rescission

  • Allow for extended payment with no fees

  • No rollovers or renewals

  • Ban on military lending

  We now learn that Senator Byrne will be the new chancellor of the two year college system.  Click on news to see what all of this means.

• HB-769 UPDATED INFORMATION.  May 3 PM, 2007.  Our Legislative page has been updated with more information from this week's session and this proposed bill.  It turns out this new bill requires operators to take pictures of all merchandise and of every customer for every transaction. Further,  there are penalties of up to $1,500 for each violation (that's each transaction) and license suspension.  So, if an operator fails to comply with this provision the penalties can be thousands upon thousands of dollars and loss of their pawn license.  Read the entire bill here.  For more discussion of this bill, go here to our legislative section.

• HB-769 IS INTRODUCED WITH CHANGES TO THE PAWN STATUTE.  May 1, 2007.  See the details here at our legislative page -- including a copy of the proposed legislation. This legislation has severe penalties for those who do not comply with the provisions of this bill.

• WALL STREET JOURNAL PUBLISHES INDUSTRY ARTICLE April 12, 2007.  See this article from the Wall Street Journal regarding payday lending. 

• STATE BANKING SUPERINTENDENT APPEARS ON ALABAMA PUBLIC TELEVISION. April 9, 2007.  One of our members alerted us to the appearance by the State Banking Superintendent on Alabama Public Television a couple of weeks ago.  Click here to see his interview in which he discusses, among other things, payday lending and title lending.

• BILLS INTRODUCED IN SENATE WILL SHUT DOWN TITLE & PAYDAY LENDING IN ALABAMA. March 10, 2007.  Bills have been introduced in the Alabama Senate that will effectively shut down our industry.  See the press articles here, here and here.  For up-to-date information click on News.

• TPCA WILL HELP ORGANIZE A NEW ASSOCIATION TO PROMOTE TRUTH ABOUT THE TITLE AND PAYDAY LENDING INDUSTRY.  February 11, 2007. Due the constant attacks by the press in which the press virtually never, ever bothers to tell the other side of the story, we all agreed it was time someone spoke out for our industry.  We plan to do this!  You will hear much more about this later.

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