The Financial Reform Bill has been signed into law by the president, and payday loan employees fear that reforms will separate them from their jobs, as outlined by an AboutPaydayLoans.com survey. As outlined by those who participated within the industry survey, the underlying belief is that the formation of the Consumer Financial Protection Bureau (CFPB) will place a federal stranglehold on the operation of money advance and online payday loan corporations across the nation, making it too difficult for many lenders to continue to operate and nevertheless be able to pay their employees.
Payday advance employees preparing for unemployment
According to one cash advance employee who responded to AboutPaydayLoan.com’s survey, the ripple effect of the Financial Reform Bill has many like him searching for higher ground before the storm. One worker wrote that “If CFPB ends up putting a crazy cap on payday loans, then we will be out of jobs”. The rate cap referenced is a 36 percent annual percentage rate that is rumored to be headed for brick-and-mortar and online payday loan corporations nationwide. Such a low ceiling would make it all too difficult for many personal loan companies who fail to diversify and operate under a less restrictive lending license. Needless to say, this is what cash advance employees fear.
Cash advance regulation: already staggering
Numerous inside and outside the cash advance industry have tried to convince the federal government the local and state regulations regarding the money advance product are more than enough to protect consumers. The CFPB and the ensuring regulation they would likely produce would hamper payday loan business. As one reader who’s an employee of a small payday loan company commented on a cash advance industry-related blog called the Payday loan Blog:
“I am getting so flustered with all of this. Every day single 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.”
Additional reading
AboutPaydayLoan.com
aboutpaydayloan.com/
Payday Loan Blog
paydayloan-blog.com/
PR Web
prweb.com/releases/2010/08/prweb4344874.htm
