PR Web just lately published a press release in which the spotlight was shined on a cash advance employee survey conducted by the industry site AboutPaydayLoans.com. Survey respondents are deathly afraid that the Consumer Financial Protection Bureau will squeeze money advance and online payday loan companies until they can no longer operate.
Payday advance employees aren’t optimistic
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 advances, then we will be out of jobs”. The primary fear is the institution of a 36 percent APR rate cap that would cripple legitimate lenders from doing business. That low figure would cripple those payday advance entities who don’t diversify under other practicable business models. These lenders would discover it extremely hard to meet expenses such as payday loan employee salaries, let alone turn a profit.
Cash advance rules are strong enough
Many have argued that the combination of local and state regulations on the payday loan industry are enough to safeguard consumers and enable businesses to continue to function. Thus, the addition of a power layer of federal regulation, courtesy of the CFPB, is considered prohibitive. A payday cash loan employee who works for a smaller online payday loan company wrote what many paydayloans 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
