CFPB to Put an End to The Helpful Payday Loan?

When Consumer Financial Protection Bureau Director Richard Cordray had appeared before the House Financial Services Committee, he had to face hard questions about the Bureau’s attitude towards paying attention to the worries of small industries. A new statement attained from CFPB shows the Bureau is dodging its responsibilities defined by law which includes the need for assessment and sidesteps damage to small businesses and not paying any attention whatsoever, to their worries. Needless to say, this irresponsible behavior of the CFPB has indirectly hurt the average American consumer who has to adhere to services like payday loan to get by in this stressful economy.

Small businessmen from all over the United States of America – counting Illinois, Virginia, Louisiana, and California among other states worked for over 90 days in order to provide information and comments to the Consumer Financial Protection Bureau about its payday loaning suggestions. This procedure produced a 528-page account that the Community Financial Services Association attained a while back under a Freedom of Information Act appeal. In spite of many minor businesses expression binding apprehensions about the CFPB’s payday loaning suggestions, there’s only one verdict in the released statement recognizing, and rapidly discharging, the opinions of these minor industries and businesses as these are relatable to state rules and regulations.

At the time of the Consumer Financial Protection Bureau’s inception, one of the only checks positioned upon it was the obligation that its supervisory suggestions be in adherence to the Small Business Regulatory Enforcement Fairness Act. This Act necessitates the CFPB to evaluate officially in the initial phases of a law making how its suggestions will influence minor businesses.

The Consumer Financial Protection Bureau’s payday loaning regulatory suggestions were inspected and measured by a SBREFA board, which consisted of minor business proprietors from all across the nation. These businessmen examined the influence of the CFPB suggestions and shared their business information with the agency. Along with the regulatory agency and minor business proprietors, the Small Business Administration alongside the Office of Management and Budget partook in the procedure to comprehend the influence of supervisory notions and guarantee that regulation does not smother smaller businesses.

Nine out of ten minor business that took part in the procedure highlighted central faults in the CFPB suggestions. These complaints included the factor of having an absence of information regarding how the CFPB’s strategies will overlap with state authorizing, licensing and controlling necessities. Payday advances have been efficaciously delimited at the state level for over ten years, and states have massively more knowledge about the regulation of payday advances than the CFPB. Still, CFPB bureaucrats seem to have been unsuccessful in involving, or pursue guidance from, their state equals.

Different to some industry workers, all CFSA associates are certified, accredited and regulated in any particular state they conduct their business. All CFSA members with obedience and diligence maintain state laws. Adhering to state necessities is a chief expense for minor businesses. But the Consumer Financial Protection Bureau’s suggestions have not clarified how the final guidelines would complement the state laws. These questions are raised:

  • Will Consumer Financial Protection Bureau guidelines forestall and deteriorate state laws that inherently are extra preventive and stricter?
  • Will small businesses have to understand, follow and obey with two uncoordinated obedience commands?
  • Will the two – the state and the agency clash when it comes to providing the best solution?
  • How to deal with this utter confusion when small businesses are already failing to meet with high lawyer costs?

The Consumer Financial Protection Bureau is after services like payday loan which actually help people, only because it doesn’t meet their standards. The public, as well as many officials, are too very upset with them.

Payday Lenders begin to turn the Tide against Proposed CFPB Regulations

Payday lenders have been living with the pressure of a very real threat to their industry for some time now. The threat is the new regulations that the CFPB has cooked up for the industry. In the mainstream media and in some court hearings, the payday lenders have taken quite a beating from the CFPB so far. It looks, however, like the lenders have finally had it, and they have started to take action to push back against the CFPB and its proposed payday lending industry regulations.

Jennifer Sons is from Chino Valley Arizona and she is also a payday loan customer. She wrote a note that got delivered to D.C. via a Cincinnati group called Axcess Financial. Part of that note read, “These loans are life savers!! Do not change anything please!”

Another payday loan customer, Kathy Walsh of Shellsburg, Iowa wrote, “If I did not have the advantage of a payday loan, I wouldn’t be able to pay for things like my medicine when I run out, especially since I get paid twice a month!”

There have been so many personal notes and comments posted online that the federal government’s website, Regulations.gov, has them all listed under a section of the site called “What’s trending.” At last count, there were more than 22,500 comments and a minimum of 830 handwritten notes that were sent through via Axcess. This group runs the Check ‘n Go and Allied Cash Advance Locations. An additional 800 comments were posted by customers of Advance Financial in Nashville. Some of these notes had straight-to-the-point text, like “I have bills to pay,” and “Leave me alone!”

The correspondence was recently reviewed and it was determined that the letters were from consumers who were concerned about their access to lines of credit going away. Those types of letters and comments far outweighed the comments from critics of the payday loan industry. The critics, mostly consumer watchdog/advocate groups, believe that the lenders are leading consumers down the wrong path and they say that credit for working class people will not go away. They claim that new financial products will offer people the chance to borrow money with more affordable fees.

Providers in the payday lending industry, however, say that the rule will force legitimate lenders to close down their companies. They also say that the rule will prevent lower income consumers from having access to emergency cash and lines of credit. In this battle the lenders have found that the borrowers are their most powerful weapon.

Cullen Earnest is the VP of public policy for Advance Financial. He said, “This is just the tip of the iceberg!” The last day that the CFPB will accept public comments on the rule is October 7th. Earnest warns that there will be many more consumer letters and comments before that day arrives.

As things now stand in most states, payday lending companies can make shorter term, smaller dollar loans to just about any person who has a job. If borrowers are unable to pay back their loans on time, they can roll the loan over into a new one. Opponents of payday lending say that this process creates cycles of debt for poor people. They hope that the new rules will put an end to the creation of these cycles. It is important to know, however, that most people who take out payday loans do so with understanding of the fees and the loan terms. They also usually pay back their loans on time. Those who roll loans over often do so willingly, and fully understanding that it will take them additional time to pay the loans back. This is no different than if someone chooses to skip a credit card payment; except that the CFPB would rather target the payday lending industry with stiff regulations than it would larger providers of financial services, like big banks and credit card companies.

Do not be fooled by Scammers pretending to be the IRS

There are three letters, when spoken or printed together that can frighten nearly everyone – IRS. Yes, the Internal Revenue Service is not an organization to take lightly. Even if you are an honest taxpayer who does everything by the book, the thought of a phone call from the IRS can probably send chills down your spine. The IRS is fully authorized to collect tax debt, and there is a valid reason for all of us to take this government agency very seriously.

It is the bit of fear that we all have of the IRS that has given scammers the ability to con people out of their hard earned cash. The scam is usually a variation of someone calling you, pretending to be from the IRS, telling you that you owe them money and then working to bilk you out of your cash. People who get nervous at the thought of an audit or who simply don’t understand how these kinds of scams work wind up getting suckered into forking over their hard earned money.

It is important to know how to identify a tax scam. Here are some tips that should help you to do so with ease…

  • Remember that the IRS does not practice calling people on the phone about tax debts. Instead, they send professional, courteous letters to inform you of these types of issues. They will even follow up with additional letters if you don’t respond, but they should never be calling you on the phone out of the blue.
  • The IRS would not demand that you wire money to take care of tax debt. The phone scammers seek this form of payment quite frequently.
  • The IRS does not threaten to have the police come to take you in. If you get on the line with a phony IRS person who talks about having you arrested, ignore them and hang up the phone.
  • The IRS does not accept iTunes cards or other types of gift/debit cards as payment for tax money that is owed to them. Believe it or not, a lot of scammers demand payment in iTunes cards, and people actually believe them!

As is often the case, many of the victims of these kinds of scams happen to be senior citizens. These scenarios can be quite sad. Here is a story about one such situation that happened recently – “A member of our family was targeted and unfortunately fell for this scam not long ago. Being elderly he didn’t understand that the IRS is NEVER going to call you to demand money. Fortunately for him, the bank teller stopped the transaction when she realized it was indeed a scam.”

Folks – scammers of all sorts love to target older people. If you have older friends and relatives, be sure to let them know about these kinds of scams, and inform them how to avoid them. These calls often come in the middle of the morning or early afternoon. However, there are so many groups working to pull off these kinds of scams that the calls can come in at any time. Many of the people who make these calls have very heavy accents and some have a difficult time understanding English. Not every person who calls that has an accent is a scammer, but it is fair to mention this in an article that is about the most recent wave of IRS phone scams.

Bottom line – even if you do owe money to the IRS they are not going to cold call you. Don’t verify any information, give credit/debit card information, wire money to or purchase any gift cards for any of these types of tax scam telephone calls.

Governmental Agency is on a Mission to Shut Down Small Lending Companies

The Consumer Financial Protection Bureau (CFPB) has only been operating for about five years. But don’t let that relatively short track record fool you; this is a governmental agency that is out to get results. As to whether those results are actually good for consumers, though, is up for serious debated. According to the CFPB, new regulations that they are pushing are all focused on helping to protect seemingly “helpless” American consumers from lenders that are out to get them. If we were crafting a dramatic story out of this whole ordeal, the main nemesis of the CFPB would be payday lending companies. However, the new rules that the CFPB is proposing would have a negative impact on payday lenders and other financial service providers that consumers depend on.

Yearly, a wide range of companies provide lines of credit for small dollar, short term loans that traditional banks don’t want to provide. These types of loans include payday advance loans, car title loans and installment loans. All lenders that provide these types of loans are in a very real danger of being shut down, and that means that millions of U.S. consumers will lose what little access they have to emergency lines of credit.

A lot of the businesses that provide these types of loans have been doing so for more than a hundred years here in the United States. These businesses have remained viable because they provide services that really help people. Every day, consumers use small dollar loans to deal with a wide array of expenses, some of which are definitely emergency expenses. These types of credit lines range from small loans people take out to get appliances/furniture, to emergency loans to pay rent payments or to cover vehicle repairs. If the CFPB gets its way, millions of Americans will find themselves out in the cold the next time they need new furniture, have to get their cars repaired to make it to work or even trying to make rent if they are in between paychecks at work.

Even though the folks in charge at the CFPB know that this is a very stark reality, they continue to move forward with their new regulations. This government agency is using the premise (one that is fool of holes) that these types of companies are predators that take advantage of people who cannot make their own financial decisions and who will never be able to pay back the money that they owe. In fact, the CFPB recently outlined their latest proposal, and estimated that the new rules could reduce the revenue of the small dollar lending industry by as much as 84 percent. And you don’t have to be a math genius or financial guru to know that an 84 percent decrease in revenue is the death knell for any type of business. Small lenders are understandably scrambling with these new changes looming on the horizon.

When did it happen that being a small business was a crime in this country? How did it come to be that companies who have been successfully providing financial lifelines to consumers for years have suddenly become the bad guys? The narrative that the Consumer Financial Protection Bureau is pushing (with plenty of support from the Obama administration, mind you) is one that simply has no basis in reality. Millions of people are unable to get financial services from traditional banks. If the CFPB is successful in its bid to effectively shut the doors of small dollar lenders, where are these financially at-risk consumers supposed to turn?

Payday Lenders out of the Crosshairs in Minnesota?

Recent moves by the Minnesota Legislature – moves that were dead set on imposing reform on the payday lending industry fell by the wayside at the end of 2014. In fact, the proposed reform actually failed to get going at all at the beginning of 2015. This turn of events represents a significant set back for a group of religious and community advocate groups that had their eye on demanding concessions from payday lending companies. These folks believe that when people get small dollar loans for a few weeks that the payday loan customers wind up in a never ending spiral of debt due to loan fees and late fees.

Last year, the Minnesota House, with the DFL pulling their strings, passed a bill that was backed up by the Minnesota Chamber of Commerce. Lobbyists and advocates for the payday loan industry, however, were not able to reach a place of common ground, so the Senate passed. Fast forward to this year and the different parties involved were not even talking about the bill, with no hearings being held to date.

Commerce Commissioner Mike Rothman said, “I’m still committed to this. This goes to my goals for building [family] financial capability. The dialogue [between the industry and consumer groups] got difficult when it came to the interest rate and the number of loans. Families do need affordable credit. It’s troublesome when they are caught in debt traps.”

The group of payday lending companies, led by the successful Payday America company, with 15 locations owned by the same family that owns Pawn America, have pushed back against changes that would effectively limited how many loans a borrower could take out and that significantly lowered interest rates to cap out at only 30 percent. A Payday America executive, Chuck Armstrong, along with Paul Cassidy, a lobbyist for the company indicated that the proposed bill would essentially destroy the Minnesota short term lending industry. The industry has put forth a concession that was to put a common reporting system into place, so that borrowers would not be able to successfully apply for loans if they had existing loans open with other lending companies.

Armstrong said, “We don’t want to keep people in a debt spiral. “Oftentimes it takes more than one loan cycle for a family to get out of debt. Our opponents are manufacturing hysteria.”

Payday lending companies always check to make sure that borrowers have a form of income. Currently, there are no caps in Minnesota to put limits on the volume of rollover loans that a person has, which can have an effect on compound interest rates. With the average payday loan being for roughly $300, the loan fees figure in somewhere around $26.50. Some critics say that this amounts to an APR of over 225 percent. However, it is important to note that most borrowers tend to pay off their loans on time, so the loan fees can only be considered a one-time charge and not a fee that compounds interest on an annual basis.

Even though there is not a lot of action taking place with regards to the proposed sanctions as of right now, payday lenders probably are not completely in the clear in Minnesota just yet. The CFPB still has its eye on imposing reform on the short term lending industry. However, perhaps alternative financial service providers, like payday lenders, can concentrate on simply offering their services to the people who really need them for the time being; instead of focusing on yet another legal fight with parties who seem to have nothing better to do than to limit the financial choices available to lower and middle income households.

Cash Loans are the Best Way to Live an Exciting Life

You work hard for your money, and there are better things to do with that money than just pay those never-ending bills that arrive in your mailbox every month. Don’t get me wrong; you have to pay the utility bill, your car payment, mortgage or rent and all the other endless bills that flood your mailbox. But these are not the only things you need money for. You have to live your life. It would be a very boring life if all you could afford to do was pay your monthly bills. Paying your bills is a necessity and it’s one of the reasons you go to work every weekday and sometimes on the weekend, but it’s not the only reason.
You also want to spend money on the fun things in life. Doing what you really enjoy in life makes life worth living. What would life be like if you never indulged yourself with the activities you enjoyed most? It would be a very boring and stressful life. Man needs to feel the excitement of what life has to offer. The greatest joys in life are the anticipation of something exciting about to happen. It’s really that simple; you deserve to have an exciting life. One that promises you pure enjoyment in experiencing the things you really want to do. A cash advance is a great way to treat yourself to something wonderful, if you don’t have the cash in your pocket or in the bank. Using cash loans to get whatever it is that you want immediately, is a way to make life better.
If you have bad credit that does not mean you should live a dull life, no, far from it. You will just have to apply for cash loans for bad credit. These cash loans no credit check are a quick and easy way to get the money you need for anything you desire. A great way to get the money you need is cash loans online. There is nothing simpler than filling out an online application that will take you a few minutes to complete. You’ll get a quick reply, and imagine how exciting it will be to check your bank account and see the money you wanted, there in your bank account.
Making your life as simple and enjoyable as it can be is just a few minutes away with a cash loan. If today you decided to throw the most outrageous party in your life, and wanted to invite all your friends; you could do it, even if you didn’t have a single penny to your name. Just go online, filled out a quick application, wait for the money to be sent to your bank account and then call all your friends to let them know when and where the party will be. This is the beauty of a cash advance. You decide what is important for your happiness and then go for it. This is really why working a job has its benefits. You get to pay your monthly bills and live the exciting life you desire.

Staying Out Of The Holiday Woe’s

 

When one is looking to put together a budget for the upcoming holiday season, they need to figure out how much money they can spend, not how much money that they want to spend.

While it is nice to have an amount that you would like to spend on gifts for friends and family members, it is important to recognize that that number is going to go out the door when you head to the store to start buying gifts.

While it is nice to think that you can stick to the low-end of the budget, you are much better off coming up with the maximum amount that you can spend without causing yourself harm in terms of your monthly bills and finances.

While you want to stay as far away from this number as possible, it is a much better way to do your holiday finances then coming up with some small number that you are never going to stick to.

By figuring out the most that you can spend, you tend to stay away from the Holiday woe’s. When you set a budget that is on the low end of the spectrum, you always end up going over it.

The thing is, while going over the budget may seem like a given, if you go over it too much you end up eating into the money you actually need to survive.

When you come up with a number you absolutely can’t go over, you run a better chance of being able to stay out of financial danger.

The Right Time To Take Out A Loan

The idea of taking out a payday loan in order to pay for holiday gifts is never a good idea. Because you never want to make a habit out of taking out a payday loan, you should leave that option for after the holidays when you may really need it. While taking out a payday loan in order to get a small advance to pay bills on time is a smart idea, using that amount of money to buy gifts is not, if only because you view it as “free money”.

 

Loans are never free money, and while a payday loan may be one of the smartest loans that you can take out, it is not for gifts or holiday spending, it should be saved for when you really need it.

When you are dealing with the financial Holiday woe’s in January and February, you want to save a payday loan for a situation where you may not be able to pay a bill on time. Instead of taking the late payment penalty, taking out the loan may save you money, especially considering that you know that you will have the money to pay it off when your next paycheck comes in. While it may take a couple of months to get your finances back in order, when you take out a payday loan in December just to buy more gifts, you run the risk of making the situation worse in the months after the holidays, causing you to go further into debt.