Consumer watchdog group will hold public hearing in KC on payday lending

A federal consumer watchdog agency will hold a public hearing June 2 in Kansas City on the controversial practices of payday lending.

The Consumer Financial Protection Bureau will host the meeting, set for 10 a.m. at the Music Hall in Municipal Auditorium, 301 W. 13th St.

The meeting will feature remarks from Richard Cordray, director of the consumer agency, along with a panel discussion involving consumer advocates and representatives from the payday lending industry.

Members of the public are also invited to provide testimony and can sign up to speak in advance or the day of the event. At a similar event last year in Richmond, Va., the consumer agency heard testimony from about 40 people.

The payday lending industry has come under increased regulatory scrutiny in recent years over some of its lending practices that leave borrowers with excessively high interest rates and a never-ending cycle of debt. Industry representatives generally have denied alleged abuses and have fought efforts for tighter regulations, saying the industry provides much-needed services.

Earlier this month, the consumer bureau sued a Mississippi-based check-cashing and payday lender for allegedly “tricking and trapping consumers” and making “deceptive statements about the benefits of its high-cost payday loans.”

In addition, two Kansas City area businessmen are facing federal charges over alleged payday lending abuses. Scott Tucker of Leawood and Richard Moseley Sr. of Kansas City have denied any wrongdoing.

For more information about the event, including registering to attend, go to the bureau’s website at consumerfinance.gov or send email to cfpb.events@cfpb.gov.

This story was originally published May 19, 2016 at 11:53 AM with the headline "Consumer watchdog group will hold public hearing in KC on payday lending."