Invested Credit

US Capitol South Side

US Capitol South Side

In lieu of the Consumer Financial Protection Bureau (CFPB) releasing a series of proposed regulatory reforms for the payday loan lending industry, many of the smaller payday lenders are seeking assistance from Congress. But will congressional representatives and senators offer assistance to bad credit loan lenders?

With the influx of numerous reforms, at both the federal and state level, very few are willing to come to the aid of the payday loan industry. And it hasn’t been without the industry trying.
The Hill reported that many smaller payday loan lenders, including Thrifty Loans LLC and Payne‚Äôs Check Cashing, have appealed to lawmakers for help in their fight of the CFPB’s new rules.

Writing in a letter to Louisiana Republican Senator David Vitter and Ohio Republican Congressman Steve Chabot, chairmen of the House and Senate committee on small business, seven small payday lenders have requested to review the federal agency’s regulatory framework. They noted that they have attempted to engage with CFPB to discuss the proposals, but to no avail.

“In fact, many of our fellow lenders believe the CFPB is trying to eliminate the payday lending industry and only conducted the Small Business Regulatory Enforcement Fairness Act (SBREFA) process to try to prevent its regulation from being overturned in court,” their letter said.

The group of bad credit loan lenders added in their letter that it has been a frustrating process because CFPB officials failed to outline problems with the state regulatory reforms and proposals. They even concede that bureau regulators “admitted they had not even analyzed the existing state programs.” Read the rest of this entry »