Cash advance

Consumers depending on cash advance need to be safeguarded from the CFPB

By utilizing behavioral economics’ insights, organizations like, the Consumer Financial Protection Bureau and the Environment Protection Agency have been controlling the economy, especially cash advance business in such a manner that have never been seen before. These organizations do not deal with the shortcomings of the industry, but identify the shortcomings that are perceived on the part of the end-users. To put it simply, consumers are being controlled because they are thought to be less alert to detail, and therefore, they are considered to be making bad choices. The reorganization of the regulatory tactics was prompted by the realization that consumers do not always make logical choices. As per some experts, people are inclined to save less than they actually should. They have a tendency of overestimating themselves about their capability of paying bills and underestimating the consequences of debt. This is what policymakers and a group of academics have put forward as an argument for their decision to regulate the short-term lending industry. Payday…
Continue Reading
Cash advance

Can’t borrow e-payday loans-due to CFPB

Borrowing e-payday loans is getting harder and harder day by day, thanks to the agencies responsible for regulating the industry. The agencies of the likes of CFPB (Consumer Financial Protection Bureau) have started using the behavioral economics’ insights to regulate the economy by creating embargoes and finishing of the products altogether rather than solving the shortcomings in the marketplace. For this they are regulating consumers. Why you ask? Because, apparently they are less attentive to detail, this can lead them to make poorer choices than government officials. According to a study, consumers are less rational in their choices, and that fact has become the stimulant in the changing focus of regulations, namely from service to consumers. A few experts are of the opinion that consumers save less than they should and also they tend to overestimate their pay ability and underestimate their debt obligations while making use of credit opportunities. This right here is the thought process of policy-makers and academicians who are regulating consumer…
Continue Reading
Life

Presidential Appointment Powers Must be Limited Soon

By now, everyone pretty much agrees that President Obama overstepped his boundaries and constitutional authorization back on January 4th, 2012. Don’t remember what happened that day? It was when he gave the head of the Consumer Financial Bureau, Richard Cordray a recess appointment. All of this eventually led to recent, troubling events. Cordray, who despite his job title is still simply a private citizen, has issued lots of potentially game-changing decisions on the part of the CFPB. In the case of State National Bank of Big Springs v. Lew, the judge said that Cordray was able to wave around a “magic wand” to help retroactively make his actions the law of the land. So then, the decision to grant recess to Cordray, and to ultimately keep him in a place of artificially inflated authority, has eroded the Constitution’s very direct instructions that limit the appointment powers of the President of the United States and will likely set a precedent that future presidents will adhere to.…
Continue Reading
Fast Cash

Obama Administration Appears Set to Wage War on Online Lenders

The Obama administration made some announcements recently that should be of concern to anyone who gets loans online or who operates an online lending company. The administration announced that it is actively soliciting for complaints from people who have been “encountering problems with loans from online lenders.” This is a blatant warning that financial regulators are going to be taking some serious action against an industry that has experienced phenomenal growth in recent years. There are literally millions of people who have taken out personal loans via the Internet. These types of loans continue to grow in popularity because they don’t require borrowers to spend hours trying to procure a loan, and they give consumers access to loan applications, comparing loans and ultimately getting their money around the clock. People can easily compare the rates of one lender to another, the same way that they would compare hotel room prices or prices for products on Amazon. Marketplace loans, or online loans grew from $12 billion…
Continue Reading
Cash advance

Most Payday Loans are Actually Paid Back on Time

Like many other states, Utah recently put some important protections into place to help protect consumers that take out payday loans. One of these requirements offers lenders the ability to offer extended repayment plans. This option, which includes zero-interest repayment for borrowers, was put into law because of outcries from an organization that demands more time for people to repay their loans. Some believe that this requirement helps borrowers to get more value from payday cash advance loans. An organization called the Community Financial Services Association of America (CFSA), an organization that strives to offer best practices for short term lenders, has lauded this Utah law. This law gives borrowers lots of time to repay their loans, without forcing borrowers to pay higher fees to get an extension on their loans. This flies in the face of some media reports that demonize payday lending companies in the state of Utah, and even the consumers these lenders provide services for. In fact, one article went so…
Continue Reading