The Financial Reform Bill has been signed into law by the president, and cash advance employees fear that reforms will separate them from their jobs, according to an AboutPaydayLoans.com survey. According to those who participated within the industry survey, the underlying belief is that the formation of the Consumer Financial Protection Bureau (CFPB) will place a federal stranglehold on the operation of cash advance and online cash advance businesses 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
The Financial Reform Bill’s potential impact upon payday advance employees is the greatest potential concern voiced in the AboutPaydayLoan.com study. One worker wrote that “If CFPB ends up putting a crazy cap on payday cash advances, then we will 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 personal loan companies 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 that the combination of local and state regulations on the payday advance industry are enough to safeguard consumers and enable companies to continue to function. The regulations the CFPB would likely put in place would strangle the cash advance industry to death, say employees of lenders. A paydayloan employee who works for a smaller online pay day loan business wrote what many payday loans no faxing employees are thinking:
“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.”
Further reading
AboutPaydayLoan.com
aboutpaydayloan.com/
Payday Loan Blog
paydayloan-blog.com/
PR Web
prweb.com/releases/2010/08/prweb4344874.htm
