Audit: Regulators Let Payday Lenders Slide On 8,000 Violations
BATON ROUGE, La. (AP) — A legislative audit says state regulators let payday lenders slide on more than 8,000 "major violations," a lapse that had at least one lawmaker seeking a joint legislative investigation.
According to an audit by Louisiana Legislative Auditor Daryl Purpera, the state Office of Financial Institutions failed to assess penalties against payday lenders found to have violated state law between Jan. 1, 2010, and June 30, 2013.
Payday loans are for small amounts over a short term.
The Advocate reports (http://bit.ly/1p4dBRm) Rep. Ted James II of Baton Rouge sent a letter Monday asking House Speaker Chuck Kleckley and Rep. Erich Ponti, chair of the House Commerce Committee, to call a special hearing on the issue.
OFI did not dispute the auditor's findings and says it will revisit its penalty assessment practices.