LOS ANGELES, July 18 /PRNewswire/ — The Financial Reform Bill has passed congress and is on its way to be signed by President Obama. One of the things this bill will do is create a new government agency to oversee and regulate the financial lending industry. This agency will be called Consumer Financial Protection Bureau (CFPB). The CFPB, along with many of the politicians who supported the bill, have vowed to put all sorts of caps and limitations on the short term lending industry, which includes the payday loan industry.
Many payday lenders and their employees, like Pay1Day.com, are worried about their future because they believe that they are already overregulated by their respective States. For example, the State of Arizona recently banned payday loans, which forced many payday lenders, like Solomon Finance, out of the State. The act of banning payday loans and having to shut down business resulted in thousands of citizens losing their jobs.
“The payday loan industry is already closely regulated,” said Gabe Rodriguez, who is a known author for a website that writes about payday loans. He goes on to say, “States that have allowed regulated payday lending have very few complaints against our industry.”
According to a comment left a one of the online payday loan blogs, an employee for a small payday loan company said:
“I work in a payday/small loan company. I am getting so flustered with all of this. Every day I wait on news that will shut us down or news that they will leave us alone. I feel as if many of us are on pins and needles wondering if soon we will be in the unemployment lines. Job security is gone, and a lot of the zest that I once had is fizzling out.. I am not alone in this.. There is uncertainty in the air… I sure wish at least we knew what and when these changes would occur.”
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 and evident that subprime mortgages, the major wall street banks irresponsible lending, and the greed of CEOs and CFOs of those banks and financial institutions were the causes for the deep recession of 2008. In other words small lenders such as payday loan lenders had nothing to do with it yet may be overregulated as the result of the passage of this new financial overhaul.