After the last great financial crisis in America, President Obama helped to create the CFPB. The Consumer Financial Protection Bureau was intended to help consumers stay out of debt. One way they have done this is to increase regulation, and make it harder to borrow money. President Trump has vowed to help the working class.
One of the ways in which he intends to boost the economy is to take power away from the CFPB. By freeing up lending institutions from excessive red tape, it will be easier for small businesses, payday lenders, and community banks to lend money to the people who need it most.
As with every other move President Trump makes, this course of action is being praised by some and decried by others. The question remains – will restricting the CFPB help the working class, or help the Big Banks to get bigger? (more…)
After two years of planning and consulting, the Consumer Finance Protection Bureau (CFPB) released its new regulations for independent lenders. These changes are designed primarily for payday lenders, but in fact apply to all small-dollar and independent lenders. Title loans and installment loans as well as payday loans.
The rule changes were instituted as way to “protect” borrowers from “predatory” lenders, but in many ways they seek to protect the consumers from themselves. These changes will prevent many people from acquiring short-term loans, which may hurt them in the short term in an effort to keep them out of the “cycle of debt.”
Basically, the new payday lender rules can be summed up in these four guideline regulations: (more…)
The federal war against payday loans has been dealt a very damaging blow. Thanks to the Freedom of Information Act, the data collected by the Consumer Financial Protection Bureau (CFPB) has been made public. It shows that by a staggeringly wide margin, people who use payday loans are happy with payday loans.
This proves beyond a shadow of a doubt that the charges leveled by the CFPB are false. Consumers aren’t against these loans: the only people who don’t like them are bank executives! (more…)
This week ABC News posted a troubling story about a retired Marine who was locked into a payday loan cycle of debt. Reportedly, he spent 5 years repaying $50,000 for $2500 worth of loans.
Legit? Possibly, but not for sure. The actual story may be different from the news story. (more…)
Quick, bookmark this site! Hurry hurry, Google is mad and about to ban us! We are not going out of business nor are we moving. We will be right here, where we have been for over a decade.
But Google has decided that businesses like this one – independent lenders who serve the hard working Americans the banks don’t like to deal with – need to be suppressed.
Is this because the massive company is complying with new guidelines put in place by the Consumer Financial Protection Bureau (CFPB)?
Or is it because Google itself backs its own private lender, and doesn’t really enjoy free market competition? (more…)
It has always been a bit of a curiosity that payday loans – the only lifeline available to working class people the banks and credit card companies won’t help – are staunchly opposed by many Democrat politicians.
The Dems want to be the voice of the 99% right? They claim to represent the voiceless and make government help all Americans. But if that is the case, why fight against payday lenders so forcefully? These same politicians who fight private lending usually take great amounts of campaign contributions from large banks and financial institutions. And that is about as far away as “fighting for the little guy” as a politician can get!
So it is a major story when the news broke that Representative Debbie Wasserman Schultz (Democrat, FL) is co-sponsoring a Republican backed bill to delay the attack plan of the government agency the CFPB to put the payday loan industry out of commission. Some Dems are shocked at her actions, and are denouncing her decision… but perhaps the Florida Representative is actually fighting the good fight and standing up for her constituents. (more…)
The Consumer Financial Protection Bureau (CFPB) recently made public its recommendations for the overhaul of the short term lending industry. It’s one of the strongest attempts to require federal regulation of payday lending, but what does that mean to the people who lean on these loans to get by? (more…)
After weeks of meeting with industry executives and financial advocates, the Consumer Financial Protection Bureau (CFPB) released its proposal for new rules to regulate short-term lending. The rules are sharp and restrictive, and seek to eliminate private lenders altogether.
While these rules are geared towards the payday loan industry, they are broad enough to encompass all forms of short term lending, including deposit advances, car title loans, and higher interest installment loans. If implemented, these rules could favor the big banks by making them the only legal way to lend and borrow in the country. (more…)
In a zealous attempt to curtail payday lending, officials from the state of New York have picked a fight they may not be able to win. The issue at hand is the sovereignty of Native American tribal reservations to lend money. The government wants them to stop, but tribal lenders are willing to battle all the way to the Supreme Court to protect their rights.
On August 6th, 2013, Benjamin Lawsky, the czar of New York’s Department of Financial Services, targeted 35 different online tribal lenders as part of an overall “predatory lending” campaign. One of the companies, Western Sky, agreed to stop funding loans by September 3.
Two other tribe-owned businesses were not intimidated. They hired legal council and are suing Lawsky for targeting them for “unlawful intimidation.” Their point is that on Native reservations, local governments do not have the authority to issue such an order. (more…)
At their heart, payday loans were always designed for the underbanked. When a person needs money and has bad credit and no collateral, banks won’t help them. Traditionally it’s been the roll of the short-term lender to step up and help those the banks can’t or won’t. In Florida, things are starting to change.
Two of the state’s largest banks have started offering payday loans, a move some people applaud, and others condemn.
Fifth Third Bank, based out of Ohio, is the 12th largest bank in Florida. Regions Bank is fourth-largest in the state. Both are venturing into a type of lending that banks have historically avoided. The underbanked are a large (and growing) segment of the population, and these banks want to bring in their business… and their money. (more…)