Dodd-Frank: Act I, Title XII
July 28, 2010 | Huffington Post, federal legislation | Comments (1)
We’re all aware of the new bill in Illinois, but the Huffington Post doles out the latest on small-dollar loan initiatives in the Dodd-Frank Act:
Title XII of the Act “encourage[s] initiatives for financial products and services that are appropriate and accessible for millions of Americans who are not fully incorporated into the financial mainstream.” Specifically, the Act will incentivize financial institutions to offer low-cost, small-dollar loans that serve as safe alternatives to payday loans.
Warren Appears To Be Gaining
July 28, 2010 | Financial Reform Bill - CFPB | Comments (0)
Despite mixed reviews, Washington sees an improvement in Warren’s odds for taking the lead post at the CFPB. Read full article in MarketWatch.
More On Small-Dollar Loan Bill in Illinois…
July 28, 2010 | Uncategorized | Comments (1)A piece in Progress Illinois goes back and forth about the proposed small-dollar loans in the state, and admits that the demand for small-dollar loans is still strong.
The Role of the Regulated in Selecting a Regulator
July 28, 2010 | Financial Reform Bill - CFPB | Comments (0)According to Jeff Sovern, a blogger for The Hill, when discussing who should lead the CFPB, we should not lose sight of the broader issue:
What role should those being regulated — in this case, financial institutions — play in selecting their regulator?
Full blog post here.
T Minus 12-18 Months for CFPB
July 28, 2010 | Uncategorized | Comments (0)
An article in Politico.com continues the discussion over the CFPB. Peter Wallison of the American Enterprise Institute makes some interesting points.
He feels that Congress has not had a significant debate about the proposed bureau…and we agree:
“The whole thing was sold as preventing another financial crisis, and people said that it was necessary to have this consumer bureau that would control Wall Street. But, in fact, it ends up mostly controlling Main Street.”
Concerned about the long-term implications of the CFPB, Wallison said:
“It’s going to make credit much more expensive, simply by reducing competition, but even the companies that survive will have to charge more in order to compensate for the additional costs of regulation.”
See full article here.
Ballot Initiative 164 in Montana
July 28, 2010 | Montana, local issues, regulation | Comments (0)Julie Howen with Title Cash Stores in Montana lends a strong argument against the 36% rate cap proposed in ballot initiative 164. She said:
“Banks don’t want to deal with small amounts or short term loans, that’s one of the biggest issues where we really feel there is a market need.”
Knowing that payday lenders can’t operate under a 36% rate cap, Howen added:
“Bankruptcies go up when we’re not in there and quality of life definitely decreases for many of our customers.”
She’s right to think that supporters of the initiative are people who don’t use the service and “just see the interest rates.”
View full article in KFBB.com
Well, well, well
July 27, 2010 | Texas | Comments (0)An interesting chat log from the Dallas Morning News today. A reporter who’d written a pretty negative story on payday lending answers reader questions and admits, among other things, that PDL is cheaper than many alternatives, that consumers appreciate having the service available, and that the fees are very transparent.
Who needs a fact checker?
July 27, 2010 | Colorado, NPR | Comments (0)The NPR station in Colorado reports on the new payday lending regulation there and mentions that payday lenders in the state are rightly concerned that consumers won’t have access to emergency funds when a need arises. To refute the point, they quote the co-chair of “Coloradans for Payday Lending Reform” simply asserting that there are less expensive alternatives available. Oh really? Well, I certainly wouldn’t want a news organization to strain anything, ya know, calling alternative providers, doing the math to compare the rates, seeing how many people would actually be eligible to use the services in member-only credit unions, checking on the membership fees themselves…
Yeah, fact checking is a tough job, and apparently nobody has to do it as long as you’ve got someone with a vested interest willing to make a declaration.
Speaking of a waste of money…
July 27, 2010 | Cincinnati Enquirer, Financial Reform Bill - CFPB, Ohio, best practices | Comments (0)Mary Hulburt from Consumer Credit Counseling Services–an organization which charges consumers to renegotiate their debt for them–has an oped in the Cincinnati Enquirer today where she mentions, among other things, payday loan debt.
She could have just directed the individual back to the free extended payment plan at payday loan stores, but then I guess the CCCS wouldn’t have gotten its cut. Looking out for consumers’ best interests indeed.
Drumbeat cont.
July 27, 2010 | Financial Reform Bill - CFPB, federal legislation, industry | Comments (0)More from The Huffington Post.
