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?
Trump and Deregulation
The CFPB targeted private lenders and payday lenders with much stricter regulations. By doing this, they forced many of these small businesses out of the market. Not only does this add to the unemployment problem, it also robs the working class of a financial option.
Let’s be honest – payday lenders are not the first choice for anyone in financial need. No, they are a last resort for people who need some extra money. These folks have poor credit, and no bank or financial institution will help them. No one except for the payday lenders.
By decreasing the strict regulation of this industry, it will provide stronger competition among lenders. There will be payday lenders, more loans, and easier access to money. All of these things will help to grow the economy.
Not a Political Statement, We Promise
The point of this blog is not to make a political statement. Politics are divisive, and at National Payday our one and only concern is getting small dollar loans to the people who need them.
Less regulation will give us more freedom to loan more money to more people. And yes, this will help our business grow, but it will also help everyone who borrows from us.
No matter if you are Red or Blue, or even a third party supporter, our doors are always open to you.
Will President Trump’s policies help the economy? Only time will tell.