Will New Payday Loan Laws Be Rolled back?


new payday loan lawsThe latest word on The new payday loan laws is not looking very good for the consumers.

Just as the new laws were gearing up to start protecting borrowers they seem to have been put on temporarily on hold by the Trump Administration.

Let’s take a look at what is going on!

[ Click here for help with out of control payday loan debt!]

The New Payday Loan Rules


Awhile back the Consumer Financial Protection Bureau created new laws making payday loan companies practice more strict lending practices.

We ran a blog on this titled:  “The Latest Payday Loan News: New Payday Loan laws Announced” 

You can also check out their complete PDF on these laws by clicking here.

After President Trump appointed former Republican Rep. Mick Mulvaney as the head of the Consumer Financial Protection Bureau it seems all bets are off for any of these new laws to stand a chance.

It seems they have all been put on hold indefinitely as part of an internal power struggle the Trump administration is in to gain control of the bureau.

Watch groups are upset and are pointing fingers and claiming foul!

They claim those campaign contributions given to Mr. Mulvaney during his last election campaign when he was South Carolina’s Representative as the reason for the favorable gift of suspending these new laws.

They also claim he has also dropped a lawsuit against payday loan lenders who were charging upwards to 900% interest on their two-week loans.

Mick Mulvaney


According to Mike Calhoun who is the president of the Center for Responsible Lending, this man is the last person that should be in charge of this bureau.

He has in the past introduced legislation to terminate the CFPB completely and has a history of taking payday loan companies contributions.

Because he has taken $60,000 plus in cash from these companies while he was in congress dictates he is going to side with these companies.

The Bureau


While this is bad news for borrowers and good news for the lenders maybe with a bit of luck these new payday loan laws still may still stand a chance.

They are to be revisited soon by the bureau Mr. Mulvaney is only an appointee and could be replaced.

Various non-profits and watch groups have gone on record saying if he should try to make these laws permanently go away they would file lawsuits in favor of the laws.

Summary


Hopefully, this will all work out in a way that helps to protect the borrowers and levels the playing field a bit.

Most people who can not get a regular loan are going to continue using these services regardless of the cost and these companies know this and do exploit it.

Let’s hope more will be done to help the borrowers continue to be able to find help without paying an arm and a leg for it.

Watch groups and nonprofits will never give up on doing the best they can to help the people who need it and that is good to know.

We will be sure to keep our eyes out for any new developments in this story!

Any thoughts or questions on this article? 

We want to hear from you!

Please leave your comment or question below in the comments section and we will get right back to you!

[ Click here for help with out of control payday loan debt!]

19 thoughts on “Will New Payday Loan Laws Be Rolled back?”

  1. Hi Shawn,

    Great article! Back in the 90’s my wife got sick and we started to fall behind with our bills. Even though my wife had excellent insurance we had a lot of out of pocket expenses. So, I used a payday loan and fell into the trap for a while. What happens is every time you get paid you owe them money which means you have to borrow again which can lead to a never ending cycle if you’re not careful. Thanks for a great article and those thinking about payday loans BEWARE!

    Jack

    1. Hi, Jack!

      I completely understand how you end up there as I too started my career in this by getting trap!

       Glad you got through it!

      Shawn>>

  2. Thanks for the information here!

    I must admit I have no familiarity with payday loans. I have tried to live strictly within my means at all times, so that my next paycheck isn’t tied up or accounted for already.

    Even thinking about that gives me some anxiety. I will say though that this post caught my eye as I DO have student loans that I need to pay off. I graduated this past May, and have about $25,000, which is not bad at all, relatively speaking.

    I’ve recently been hearing about refinancing, though. And that it has the potential to save me money in the long-run.

    I was curious if you have some knowledge about refinancing student loans that you could use to give me a recommendation.

    Thanks!

    1. Hi, Jordan!

      The best I can tell you on refinancing is to check with your local redit union. I have found they are much better than finance companies or banks!

      Good luck!

      Shawn>>

  3. It’s my understanding that many of these payday loan companies are actually owned by the big banks. They are predatory by nature and take advantage of the poorest of our population. Despicable! What happened to usury laws? Do they even exist anymore? 900% interest?

    The CFPB, in my opinion is largely a ‘feel good’ institution that will rarely help individuals unless complaints are gathered en-mass and the crimes can’t be covered up. They have taken some action against the most egregious violations of the law, but only when the crimes are already out there. Also, bankers never go to jail, only token fines assessed when they’re caught. Their profits easily cover the fines so there is no incentive to behave.

    1. Hi, Steve!

      You are well informed and that is a breath of fresh air in this business!

      Usury laws are still there but big money has awarded these kinds of loans as exempt from them in most states. 

      Yes, banks and very wealthy individuals and even Indian Tribes re frequent owners of these companies.

      Thanks for stopping by and let the word out if you could that we are here for anyone who needs our services!

      Shawn>>

  4. I think we can’t just blame the payday loan offices as if there weren’t people getting the loans, there wouldn’t be also those offices. I don’t say a word about those in a sudden, unpredictable need for money who just have no other choice than have the payday loan – these are the people that need to be protected. But there are many people who just aren’t good enough in planning and living over their means – well, this is just their fault then if they get stuck with these offices. If you don’t earn as much as you spend – it’s time to review your expenses and tighten the belt, and definitely not the time to get payday loan. It will not solve anything, at the end, it will only make things worse. If you are used to a certain level of comfort, without doubt it is very hard to reduce it – but if you can’t afford that level of comfort anymore, then there is no other choice than to lower it. But I suppose it is a problem for the majority of people resulting in a profit for payday loan companies.

    1. Hi, Arta!

      I agree, there are those who abuse the system and end up over their heads in debt.

      We are here to help them all and hopefully teach them how to never get stuck again!

      Oh, we can only hope they listen.

      Thanks for stopping by!

      Shawn>>

  5. Great Shawn. I too have used a couple of these back in my mid 20’s. They got me out of a bind a couple of times but it was my last resort too. Getting caught up in them is very easy and very hard to get out from under if you are not very disciplined.

    1. Hey Jody!

      I agree, they can really be hard to get out from under but they can also serve a good purpose when used right!

      Thanks for stopping by and if we can ever help you or someone you know in the future please feel fee to give us a shout!

      Shawn>>

  6. Shawn,

    How are you? I reviewed and posted a comment on your site.

    I myself do not support payday loans and have fallen in the horrible cycle of payday loans in hard times. I do think they have their place in the market but I would only recommend them as a last resort.

    However as explained in the comment on the new rules I think you are doing a great job by keeping consumers informed. Thank you for your service.

    -Eddie

    1. Hi, Eddie!

      Thanks for stopping by and checking out the article!

      I agree with the last resort thinking, and they do help many people. As long as they are used correctly they do serve a purpose!

      Shawn>>

  7. Shawn,

    I am not a big supporter on Pay Day Loans and have fallen into debt with these type of lenders in the past. I do believe they may help some people out of a bind but the interest rates are outrageous.

    However, I do think you are doing a great service by providing this type of consumer information.
    Congrats!

    Eddie

  8. It is a shame that so many people have to use these services today, but I’m not sure that going after the payday loan companies is going to solve the wi.

    What will they peoplle do without the loans? Not eat? No pay their gas bills? Let their car get repossessed? I agree that taking advantage of the down trodden needs to be stopped, but there has to be a way to help the consumers too.

    1. Hi, James!

      All great questions and with a bit of regulation and longer term low dollar loans for people with not so good credit and this would look a bit different.

      It can be hard when you just do not have the cash, and we here try to save our clients as much as we can! while getting rid of all the stress they have top go through when dealing with defaulted payday loans.

      Thanks for stopping by and share this site so more [people can have access to help!

      Shawn>>

  9. Your tile got my attention. Everyone has this problem today, well almost everyone. The title of your page got me to read all the way to the end. Now I know why so many of us stuck in this problem with no way out. This is why we need your help…get your point…

  10. Thanks for this article. I have seen people taken advantage of from these places first hand. When we consider 900% interest over two weeks it is ludicrous. I I said to someone that I could loan them a $1000 if they can pay back $9000 in a couple of weeks, most people would run out of the building.

    However, when in a desperate situation, people will say yes even if they know they will never pay back that loan. Loans should be fair while still protecting themselves. Do you think that is the reason some people are charged this insane rate?

    1. Hi, Ernest!

      The reason they charge this much is because they can, and the profits are insane. 

      As long as they do this we will be here to help people get out of this nightmare!

      Thanks for stopping by and remember we are here for anyone you may know who needs help!

      Shawn>>

Leave a Reply

Your email address will not be published. Required fields are marked *

*