Current Industry News
Average Utah payday loan interest rate rises to nearly 528% annually — double what Mafia loan sharks charged in the 1960s
The already astronomical interest rates for payday loans in Utah are rising, to an average of 528 percent, with the highest rate topping a stunning 1,500 percent. Still, 1 of every 5 payday loan stores in the state closed in the past two years. That’s according to new annual data compiled by the state about the industry — portrayed by critics as a “debt trap” that can easily hook and financially drain the poor, but defended by lenders as a needed service for people with poor credit and few other loan options
Attorney General Becerra Recovers Nearly $8.8 Million Against Corrupt Operators of Sham Charity for Wounded Veterans
SAN DIEGO – California Attorney General Xavier Becerra announced today a jury verdict in favor of the State against individuals who fraudulently solicited charitable donations under the pretext of assisting wounded veterans and their families and instead illegally enriched themselves with the donated funds. In April 2017, Attorney General Becerra filed a lawsuit alleging that the operators committed fraud against California donors. Following trial, the jury awarded nearly $8.8 million to the state against defendants Matthew G. Gregory and spouse Danella J. Gregory, their adult children Matthew J. Gregory and Gina D. Gregory, and their business Gregory Motorsports.
FTC Submits Comments to NTIA on Consumer Privacy
Staff of the Federal Trade Commission calls for a balanced approach that protects both consumer privacy and innovation in a comment submitted to the Department of Commerce’s National Telecommunications and Information Administration (NTIA) as part of that agency’s consumer privacy proceeding. In its comment to NTIA, staff notes the FTC’s extensive experience in protecting consumer privacy and fostering innovation. For decades, the Commission has brought hundreds of cases protecting the privacy and security of consumer information—both online and offline—held by large and small companies. In addition, the Commission also conducts consumer and business education and policy development to promote privacy and the security of consumer data.
Fines and Lawsuits Are Adding to the Cost of Corporate Data Breaches
Hackers constantly probe computer networks worldwide for vulnerabilities, seeming to pull off a major cyberattack almost weekly. In the past three weeks alone, HSBC Bank of London reported that its U.S.-based accounts were illegally accessed; hackers compromised an Australian military shipbuilder’s personnel files; and Hong Kong airline Cathay Pacific confirmed a breach that affected up to 9.4 million passengers. The intrusions by criminal and state-backed hacker groups are aimed at obtaining personal information such as names, phone numbers, addresses, national identification numbers, and credit card and banking information. The groups can either sell the data to others who exploit it for financial gain or use it to conduct more targeted attacks – presenting a national security as well as a corporate concern. Now, governments in Europe and North America are pushing companies harder to shore up their network defenses and are fining those that are lax.