Bill Isaac’s United States Banker Article re: Payday Lending. CFPB Payday Arrange Will Hurt Those It Seeks to aid
Bill Isaac had been president for the FDIC from 1981 through 1985, a time that is tumultous the U.S. bank operating system. Their “take” regarding the CFPB’s proposed payday financing regs is interesting (see American Banker piece below). The high-cost advance loan company will die underneath the CFPB’s proposed guidelines. This really is great news for unlawful loan sharks…..but perhaps not so great when it comes to folks searching for crisis loans…….
CFPB Payday Arrange Will Harm Those It Seeks to aid
Reading the customer Financial Protection Bureau’s proposed guidelines for managing payday loans, i possibly couldn’t help but remember the belated Yogi Berra’s line, “It’s like déjà vu once again,” alongside the Hippocratic Oath (“First, do no harm”).
2 yrs ago, any office regarding the Comptroller of this Currency issued guidelines regulating non-collateralized, “advance deposit” loans – a bank product which bore considerable resemblance to nonbank payday loans. Within times of the OCC’s promulgating its guidelines, every significant bank that offered the merchandise chose to pull it from the market. Continue reading