Despite recent regulatory changes designed to encourage banks to offer small dollar loans few banks are taking up the challenge;...
In 2017 the CFPB saw a ton of regulation and a battle for the successor to former director Richard Cordray; this coming year could be even more tumultuous as acting director Mick Mulvaney looks to undo many of the regulations Cordray put in place and the ensuing court battle over who is the rightful director; recent rule like the arbitration rule have been reversed and they payday lending regulation could be next to go; with a number of regulations in need or more clarity or a court decision the next 12 months could prove crucial for the future of the agency. Source.
Acting CFPB Head Mick Mulvaney said he thought the payday lending rule was too far along for the agency to change but that he supports a congressional rollback; the Congressional Review Act gives Congress 60 days to nullify a regulation; Mr. Mulvaney is currently involved in a dispute over whether or not he can run the agency on an interim basis and he said he anticipates staying for 5 to 7 months. Source.
On October 5, 2017 the Consumer Financial Protection Bureau announced a new rule aimed to protect consumers against payday loan...
Yesterday, the CFPB formally rescinded a plan to impose new limits on payday lending; the proposed changes were a signature...
The new CFPB director Mick Mulvaney is planning to rollback a key regulation that will allow payday lenders to charge very high interest rates; the current rule was set to be enacted soon and allow for lenders to become compliant by the middle of 2019; the rule limited the amount of money or the amount of times a person could borrow from these short term lenders; with the removal of the rule payday lenders can go back to operating like they did prior to the CFPB; many fear that lower income Americans will become mired in debt. Source.
Small dollar loans can be quite profitable. Just look at the number of payday loan stores in the US, there...
Almost 800,000 U.S. government workers are out of work due to the shutdown and high cost, short term lenders are...
Payday lending has always had a place in financial services as they do offer credit to those who are shut...
While writing in his weekly Forbes Column Ron Shevlin of Cornerstone Advisors says on-demand pay or earned wage access services...
