PDLindustryblog weighs in.

We’re hearing the markup of the Gutierrez bill is likely to be postponed until after the August recess.  It was scheduled for next week.  What does this mean?  If I find out, I’ll tell you.

Update: Definitely postponed.

From today’s New York Times:

Mr. Bernanke says that the Fed has expertise that would be difficult to replicate at a new agency. Consumer oversight coincides with the Fed’s mission to oversee the safety and soundness of banks, he said in testimony to the Senate Banking Committee.

A leading Canadian lender does.  From the news release:

National Money Mart Company, a subsidiary of Dollar Financial Corp (NASDAQ:DLLR) and Canada’s leading convenience financial service provider, today welcomed news that the Province of Nova Scotia will be the first in Canada to officially regulate the payday loan industry, including a maximum rate of borrowing as of August 1, 2009, with a regime that will balance strong consumer protection.

Rep. Jeb Hensarling (R-TX) had this opinion piece in yesterday’s Washington Times:

The CFPA will further harm consumers by stifling innovation. It is doubtful how many financial firms will choose to invest in research, development and consumer testing on new products, only to discover later the CFPA deems them to be “unfair” and thus unlawful. Had the CFPA existed 25 years ago, we would probably have no ATMs, frequent-flyer miles or debit cards. Functionally, a new federal bureaucracy will now be in charge of research, development and product approval for almost all new consumer-financial products.

The longer the debate, the more opposition will grow to the Consumer Finance Protection Agency.

Story out of Britain says people can’t control their Internet shopping:

Even though, people fall into debt troubles, still they could not blame internet completely, instead trying to find another reasonable means to manage their debts like borrowing payday advance from Mypayday, at least it is quite reasonable and responsible too as compared to others.

Blame the Internet?  Didn’t occur to me.

Today in the New York Times, an MIT economist makes the case that banks should support the Consumer Finance Protection Agency:

There’s no question that some financial firms would like to return to abusive practices, figuring they can once again make money and then move on. Yet serious financial sector firms would prefer to clean up their acts and work with properly informed customers. These firms are making a bad mistake in opposing the consumer protection agency.

Interesting how academics think they know better than people who run businesses.

Do they work when discussing payday lending legislation?  This reporter out of Minnesota gives it a shot.

How can you be any clearer? This is how much you are borrowing, this is the fee and this is the amount that you payback. Clear?

That’s the profound wisdom of CFSA spokesperson Steven Schlein in a Washington Post article in which an interfaith organization calls for a 10% federal rate cap:

….In May, an effort in Congress to set a 15 percent interest rate cap lead by Sen. Bernard Sanders (I-Vt.) garnered only 33 votes. However, three years ago Congress passed a 36 percent cap on loans to military borrowers after a Pentagon report documented the impact of payday loans on service members.

Lenders say a national interest rate cap would be bad for consumers.

“Payday loans are typically two weeks. A 10 percent rate cap would mean the industry could charge under 40 cents per $100 loaned for two weeks. Even a charity like Goodwill Industries charges $9 per $100 loaned for its payday loan alternative,” said Steven Schlein, a spokesman for the Community Financial Services Association of America, a trade group for payday lenders. “A rate cap simply means a ban on short-term loans.”