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Senators Urge CFPB to Issue Strong Rules Against Payday Lending

In a follow up to an earlier post by Adam Deutsch,  regarding the NJ Investment Policy Committee and the ACE Cash Express connection through JLL Partners,   it now seems that the NJCA may have started a groundswell of support as Federal lawmakers express support of the CFPB issuing strong rules against payday lending as it was reported in a recent press release.

Senators Urge CFPB to Issue Strong Rules Against Payday Lending

Jun 08, 2015

Thirty-two senators submitted a letter to Director Richard Cordray calling for more regulation of the credit products.

As the Consumer Financial Protection Bureau considers new rules to rein in practices in payday and similar types of lending, Sen. Jeff Merkley (D-Ore.) and 31 of his Senate colleagues, including 29 Democrats and two from the Independent Party, recently expressed their support for the initial steps the Bureau has taken and urged the agency to issue the strongest possible rules for the payday lending industry, according to a news release from Merkley

In an Op -Ed published in NJ Spotlight by, Adam Deutsch Esq of Denbeaux and Denbeaux, it was pointed out that “New Jersey maintains a statute that prohibits payday-lending companies from operating within the state. Despite this prohibition, a recent article published by Fortune.com revealed that New Jersey’s public pension fund has invested $50 million in a private equity fund that owns Ace Cash Express Inc., a company that is prohibited from conducting business in New Jersey.

Phyllis Salowe-Kaye,  Executive Director, of NJ Citizen Action (NJCA) went to the New Jersey State Investment Council and speaking jointly with the NAACP, demanded that they remove public money from any private equity firm or hedge fund that invests in predatory payday lending.

“We urged them to pull out of a new $150 million investment with JLL Partners they have all but approved, and also asked them to examine policies to makes sure that pension fund money does not go into businesses that are illegal in New Jersey and to put in place a disclosure requirement regarding any regulatory violation or actions before companies can be considered for investments,” said Phyllis Salowe-Kaye Executive Director, of NJ Citizen Action, who went on to say “ the Investment Policy Committee had already discussed the topic at great length before the May 27th meeting.  At the May 27th meeting the Chairman Byrne called for action and asked the Division of Investment to find out how to divest from JLL Partners.”

A petition is now in circulation asking citizens to demand New Jersey immediately divest from JLL Partners and sign a petition demanding that no NJ Pension Fund dollars are invested in predatory payday lending.

The following links are for a series of articles and press coverage that have been published following the NJCA testimony to the NJ Investment Counsel

AP Story:

State weighs selling stake in firm that owns payday lender.

http://www.cnbc.com/id/102711594

Star Ledger

NJ May Divest From Investment Tied to Predatory Lending

http://www.nj.com/politics/index.ssf/2015/05/nj_may_divest_from_investment_tied_to_predatory_pa.html

Pensions & Investments Online

NJ Council Wants Plan to Deal with Payday Loan Investment

http://m.pionline.com/article/20150601/ONLINE/150609983/nj-council-wants-plan-to-deal-with-payday-loan-investment

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Formed in 1989, Denbeaux & Denbeaux is a law firm dedicated to providing top level legal representation to its clients. The partners, Marcia Denbeaux and Joshua Denbeaux, as well as senior and associate attorneys, represent individuals and businesses in New Jersey State and Federal Courts.