Category: Regulation

  • Payday industry fights back

    The New York Times reports “A Consumer Bill Gives Exemption on Payday Loans” that Senator Bob Corker of Tennessee is trying to remove a provision from the draft that would empower the CFPA to oversee payday lenders.

    Payday Pundit highlighted this statement by CFSA spokesman Steven Schlein:

    “The banks caused the financial meltdown, and they’re spending millions and millions to spare themselves from tighter regulation while throwing the consumer lending industry under the bus,” he said. “They’re trying to divert attention to us.”

  • Nevada trying to cut down on Internet payday loans

    George Burns, Commissioner of the Financial Institutions Division, wants Nevada to stop Nevada licensees from giving loans to borrowers in other states.

    He doesn’t have a problem if you are licensed in that “other” state.

    Mr. Burns may have a legitimate beef, but it’s probably misdirected. His department has to deal with these complaints. He would rather a Missouri borrower deal with the Missouri Regulation body.

    The main issue I have here is that you inevitably start discriminating against lenders who are trying to play by the rules. The lenders that are giving the state of Nevada problems will find some other way to do so, directly or indirectly.