Letter to Comptroller Stringer Calling for Divestment from Illegal Payday Lenders

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 organizations that are undersigned one to instantly and permanently divest ny City’s retirement funds from payday lending businesses – whose loans are categorically unlawful in ny. City pension funds invested a lot more than $20 million in payday lending and high-cost 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 additionally the Check Cashing Store.

Spending general public retirement funds in disreputable payday financing businesses raises a primary conflict when it comes to City. Not just do these businesses make triple-digit interest loans which are unlawful in nyc, but the majority of those have already been the main topic of enforcement actions for flagrant violations for the legislation; mistreated clients; and encountered allegations of misleading and defrauding investors – including pension that is public – in states where they truly are allowed to work.

Among the list of investments : в—Џ money America Overseas, Inc. and EZCORP, Inc. have already been the topics of major enforcement actions because of the customer Financial Protection Bureau (CFPB) for illegally robo-signing court papers, breaking the federal Military Lending Act,ii and unlawfully harassing borrowers at their houses and workplaces,iii among other violations. в—Џ Cash America Global, Inc. additionally made loans with interest levels that surpassed 1,000per cent to Pennsylvania residents,iv in breach of Pennsylvania’s customer security rules. Continue reading “Letter to Comptroller Stringer Calling for Divestment from Illegal Payday Lenders”