BATON ROUGE вЂ“ LouisianaвЂ™s workplace of finance institutions is meant to modify payday loan providers across their state but an audit discovered that the agency does not protect borrowers from getting struck with exorbitant charges or even to stop the industry from participating in poor financing practices.
Legislative Auditor Daryl PurperaвЂ™s report points out that from Jan. 1, 2010, to June 30, 2013, the agency that is regulating more than 8,300 citations to loan providers but failed to impose any charges for violations of state laws and regulations. Rather, it issues orders that lenders donвЂ™t have actually to obey because OFI doesnвЂ™t follow through on its sales to see if consumers were given refunds whenever violations occurred.
Perhaps perhaps Not forcing loan providers to follow proper techniques you could end up exactly what the report calls a вЂњcycle of debt.вЂќ
вЂњOverall, we discovered that OFI needs to strengthen its assessment, follow-up, enforcement, and issue procedures to make sure it really is effectively managing payday lenders,вЂќ the performance review claims.