A new audit report has found that nearly a third of Nevada payday lenders have received poor ratings from state regulators over the last five years.
The Nevada Independent reports a performance audit of the Division of Financial Institutions found a significant percentage of payday lenders violate state laws and regulations every year.
Of the more than 2,600 licensees they oversee, the division found 2,156 violations of state laws and regulations.
The most common violation was for title loan companies to extend a loan based on more than the fair market value of a vehicle.
The audit suggested that a centralized tracking system of high-interest short-term loans would be of value to the division and its licensees.
Fourteen other states use a similar payday loan database.
