“Bad policy”
April 27, 2010 | federal legislation, industry | Comments (0)A guest piece in the American Banker this morning (not linking to it because a subscription is required) from the check cashing industry. Money quote:
Finally, state regulation of check cashers includes licensing, record keeping and reporting requirements. Consumer protection concerns are addressed through fee caps and clearly spelled-out fee disclosure and signage requirements. Customers know up-front how much each transaction will cost. There is complete transparency.
Similarly, payday loans are only legally available in those states that adopt specific laws allowing the product, and all include significant consumer protections that address issues such as term, rate, rollovers, renewals, etc. Again, there is complete transparency with these transactions.
Given these facts, why expand a CFPA’s jurisdiction to include check cashing and small loans?
Finally, state regulation of check cashers includes licensing, record keeping and reporting requirements. Consumer protection concerns are addressed through fee caps and clearly spelled-out fee disclosure and signage requirements. Customers know up-front how much each transaction will cost. There is complete transparency.
Given these facts, why expand a CFPA’s jurisdiction to include check cashing and small loans?
Similarly, payday loans are only legally available in those states that adopt specific laws allowing the product, and all include significant consumer protections that address issues such as term, rate, rollovers, renewals, etc. Again, there is complete transparency with these transactions.
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