Letter to Comptroller Stringer Calling for Divestment from Illegal Payday Lenders
The Honorable Scott M. Stringer Comptroller, New York One Centre Street Nyc, NY 10007
Dear Comptroller Stringer:
The undersigned businesses urge you to definitely instantly and permanently divest ny CityвЂ™s retirement funds from payday lending organizations вЂ“ whose loans are categorically unlawful in nyc. City pension funds invested significantly more than $20 million in payday high-cost and lending installment financing organizations in 2016. Also, City pension funds spent almost $160 million in Lone celebrity Fund VIII, a personal equity investment that has DFC worldwide, Inc.,i which, in change, owns several payday loan providers, including cash Mart while the Check Cashing Store.
Spending pension that is public in disreputable payday financing organizations raises a primary conflict for the City. Not merely do these businesses make triple-digit rate of interest loans which can be unlawful in nyc, but the majority of those happen the topic of enforcement actions for flagrant violations regarding the legislation; mistreated clients; and encountered allegations of misleading and defrauding investors вЂ“ including pension that is public вЂ“ in states where these are generally allowed to use.
Among the list of investments : в—Џ money America Overseas, Inc. and EZCORP, Inc. have now been the topics of major enforcement actions because of the customer Financial Protection Bureau (CFPB) for illegally court that is robo-signing, breaking the federal Military Lending Act,ii and unlawfully harassing borrowers at their houses and workplaces,iii among other violations. в—Џ Cash America Overseas, Inc. additionally made loans with interest levels that surpassed 1,000per cent to Pennsylvania residents,iv in breach of PennsylvaniaвЂ™s customer security regulations. в—Џ World Acceptance Corp. happens to be under research because of the CFPBv since March 2014 to find out whether or not the companyвЂ™s exploitative business practicesvi come in breach associated with the customer Financial Protection Act, the reality in Lending Act, as well as other federal customer monetary regulations. (más…)