Financial reform bill has passed and now CFPB has been created to create more rules and regulations for the lending industry including the short term loan industry even though this industry had nothing to do with the 2008 recession.
CFPB and many of the politicians have vowed to put all sort of caps and limitations on the short term lending industry which includes the payday industry.
Many payday lenders believe that they are already over regulated by their own States. For example State of Arizona recently banned payday loans that made many payday lenders leave the State that resulted in thousands of good paying jobs being lost. And State of Illinois introduced tighter regulations on payday lender.
“The payday loan industry is already closely regulated ” said Gabe Rodriguez who is a known author in the payday loan community. He further points that that “States which have allowed regulated payday lending have very few complaints against our industry”.
CFPB will represent the federal government and add a new layer of regulations in additions to those added by the States which is making the payday lenders and their employees very nervous.
According to the “comment of the day” section at Payday Pundit an employee for a small payday loan company said:
Payday lenders feel that the financial reform bill is not addressing the root causes of what led the US economy to collapse in 2008. It was well documented that sub-prime mortgages, the major wall street banks irresponsible lending, and the greed of CEOs and CFOs of those banks and financial institutions was what led to the deep recession of 2008. In other words it was the wall street not the main street that was responsible for the 2008 financial collapse.