The Dodd Frank Act created the Consumer Financial Protection Bureau to regulate financial goods like payday loans, credit cards and mortgages. Payday loans, some hoped, would turn out to be regulated out into extinction by the bureau. That said, the bureau is not operation yet and is embroiled in a Congressional brouhaha. Also, there is at least one major payday lending firm that actually welcomes the bureau.
Response from Advance America exec is good
Since the Customers Financial Protection Bureau would protect consumers from opposed products 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 vehicle with which to do that. There is one executive of a payday advance business that isn’t scared of the Consumer Financial Protection Bureau. It really welcomes the executive. William Webster, Chairman of Advance America Cash advance Centers Inc. has said he welcomes federal scrutiny, according to the Wall Street Journal. He explained the company doesn’t have secrets for the government to dig up. All of its practices are public knowledge.
Praise for Warren
Due to the rules on overdraft fees and for setting up the bureau, Webster has praised Warren. He has done this on record, the Huffington Post states. Granted, overdraft loans and payday loans are competing products. The CFPB is expected to look into the normal abuses payday loan lenders do for instance not disclosing fees when the transaction is made, which Webster and other loan businesses will not have a problem with. Legislation should be made to work for lenders and customers, especially in online lending. This is what payday cash loan firms believe in. Most online lending will keep away from laws more than a store in a community. This is why Webster thinks there should be a ton of regulation on online loan programs and for online lenders.
If the CFPB can get started
The future of the CFPB is unclear. There were three bills introduced recently to change the agency structure or to stop operations from starting for a while, which shows how hard Congress is making it for the agency to begin. It may be awhile before the bureau actually gets started though with the July 21 deadline coming up fast without a director. Not to mention, Congress has not even been able to choose if one director of five will work better yet.
Information from
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
No comments:
Post a Comment