Bill Isaac had been president for the FDIC from 1981 through 1985, a time that is tumultous the U.S. bank operating system. Their вЂњtakeвЂќ regarding the CFPBвЂ™s proposed payday financing regs is interesting (see American Banker piece below). The high-cost advance loan company will die underneath the CFPBвЂ™s proposed guidelines. This really is great news for unlawful loan sharksвЂ¦..but perhaps not so great when it comes to folks searching for crisis loansвЂ¦вЂ¦.
CFPB Payday Arrange Will Harm Those It Seeks to aid
Reading the customer Financial Protection BureauвЂ™s proposed guidelines for managing payday loans, i possibly couldnвЂ™t help but remember the belated Yogi BerraвЂ™s line, вЂњItвЂ™s like dГ©jГ vu once again,вЂќ alongside the Hippocratic Oath (вЂњFirst, do no harmвЂќ).
2 yrs ago, any office regarding the Comptroller of this Currency issued guidelines regulating non-collateralized, вЂњadvance depositвЂќ loans вЂ“ a bank product which bore considerable resemblance to nonbank payday loans. Within times of the OCCвЂ™s promulgating its guidelines, every significant bank that offered the merchandise chose to pull it from the market. Continue reading