The Dodd Frank Act, among other things, put consumer financial products like charge cards and payday loans under the auspices of the Consumer Financial Protection Bureau, the government agency which is currently stalled in coming to life in Congress. Payday lending was one of the things that consumer advocates were keen on getting under greater government oversight. Some were hoping the CFPB would regulate payday loan lenders out of existence. That said, the bureau isn’t really operation yet and is embroiled in a Congressional brouhaha. Also, there is at least one major payday lending firm that actually welcomes the bureau.
Advance America exec states company has nothing to hide
Since the Consumers Financial Protection Bureau would protect consumers from opposed goods for instance payday loans, many consumer supports loved the idea of the bureau. It seemed like the CFPB could do a good job regulating the product since several are against its existence. There is one executive of a pay day loan company that is not scared of the Consumer Financial Protection Bureau. It actually welcomes the executive. The bureau has been completely welcomed by William Webster. According to the Wall Street Journal, Webster is the Chairman of Advance America Cash advance Centers Inc. He claims there’s nothing that the government will dig up the company doesn’t already disclose.
Giving Elizabeth Warren the praise he feels she deserves
The Huffington Post reports that Elizabeth Warren has been praised by Webster on record for getting the bureau set up and stopping overdraft fees from taking place. Granted, overdraft loans and payday loans are competing products. Loan businesses such as Webster will not have an issue with the CFPB looking into abuses in their businesses. This is because they do not abuse anything and actually disclose fees as they’re supposed to. Most payday loan companies are for legislation as long as it is responsible and helps consumers and lenders. Webster believes that online lenders and overdraft loan programs should be getting more regulation than any since they typically stay away from laws more than stores.
Cloudy future for Consumer Financial Protection Bureau
The future of the CFPB is unclear. There were three bills introduced recently to change the agency structure or to stop operations from starting for a while, which shows how tricky Congress is making it for the agency to begin. It may be awhile before the bureau actually gets started though with the July 21 deadline coming up fast without a director. Not to mention, Congress hasn’t even been able to choose if one director of five will work better yet.
Articles cited
Wall Street Journal
online.wsj.com/article/BT-CO-20110513-712677.html
Huffington Post
huffingtonpost.com/2011/05/10/payday-loan-kingpin-praises-elizabeth-warren_n_859753.html?ir=Business
CNN
money.cnn.com/2011/05/06/news/economy/cfpb_director/?section=money_latest
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