The Dodd Frank Act, among other things, put consumer financial goods like credit cards and payday loans under the auspices of the CFPB, the government agency which is currently stalled in coming to life in Congress. Payday lending was one of the things that consumer supports were keen on getting under greater government oversight. Some were hoping the Consumer Financial Protection Bureau would regulate payday loan lenders out of existence. A payday lending firm is not scared in the least, and welcomes the bureau’s attention.
Good news from Advance America exec on company
Since the Customers Financial Protection Bureau would protect consumers from opposed goods such as payday loans, several consumer supports loved the idea of the bureau. Opponents have called for the product to be regulated out of existence and the Consumer Financial Protection Bureau seemed a good automobile with which to do that. The CFPB is welcomed by one cash advance business executive. William Webster, Chairman of Advance America Cash advance Centers Inc. has said he welcomes federal scrutiny, according to the Wall Street Journal. The business already discloses all of its practices meaning the government won’t be able to hurt it.
Hoping for Warren
The Huffington Post reports that Elizabeth Warren has been praised by Webster on record for getting the bureau set up and stopping overdraft fees from happening. Overdraft fees and payday loans are different goods though. Loan companies such as Webster will not have an issue with the Consumer Financial Protection Bureau looking into abuses in their companies. This is because they do not abuse anything and really disclose fees as they are intended to. Legislation should be made to work for lenders and customers, especially in online lending. This is what payday cash loan firms believe in. Webster believes that online lenders and overdraft loan programs should be getting more regulation than any other since they typically keep away from laws more than stores.
How the bureau is looking
The CFPB doesn’t have a clear future. The agency will have a hard time getting started with Congress around. There were already three bills introduced to slow the start of the agency or change the way it is directed. Any payday advance firms dreading the bureau opening its doors can rest easy, as the July 21 deadline to hire a director is a couple of months away, and given that Congress cannot choose if it should have one director or five, according to CNN, it may not start regulating anything for a while to come.
Articles cited
Wall Street Journal
online.wsj.com/article/BT-CO-20110513-712677.html
Huffington Post
huffingtonpost.com/2011/05/10/payday-loan-kingpin-praises-elizabeth-warren_n_859753.html?ir=Business
CNN
money.cnn.com/2011/05/06/news/economy/cfpb_director/?section=money_latest
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