President Obama has signed the Financial Reform Bill, and according to a survey by AboutPaydayLoan.com, cash advance employees are worried for their jobs, writes PR Web. As outlined by those who participated within the industry survey, the underlying belief is the formation of the Consumer Financial Protection Bureau (CFPB) will place a federal stranglehold on the operation of money advance and online cash advance companies across the nation, making it too difficult for numerous lenders to continue to operate and nevertheless be able to pay their employees.
Payday loan employees give voice to their fear
According to one payday advance employee who responded to AboutPaydayLoan.com’s survey, the ripple effect of the Financial Reform Bill has many like him looking for higher ground before the storm. One worker wrote that “If CFPB ends up putting a crazy cap on payday advances, then we could 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 cash advance businesses nationwide. Such a low ceiling would make it all too difficult for numerous payday lenders who fail to diversify and operate under a less restrictive lending license. It goes without saying that those businesses that fail to diversify would let their employees go when tougher APR restrictions go into place.
Money advance regulation is tight
Many have argued the combination of local and state regulations on the cash advance industry have been enough to safeguard consumers and enable businesses to continue to function. The CFPB and the ensuring regulation they would likely produce would hamper payday loan business. As one reader who is an employee of a small cash advance company commented on a money advance industry-related blog called the Cash advance 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
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