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. Survey respondents are deathly afraid the Consumer Financial Protection Bureau will squeeze cash advance and online payday advance companies until they can no longer operate. Resource for this article – Payday loan employees fear for their jobs by Personal Money Store.
Payday advance employees aren’t optimistic
What the Financial Reform Bill may do to cash advance businesses and employees colored the AboutPaydayLoan.com survey in dark shades. ”If CFPB ends up putting a crazy cap on payday advances, then we could be out of jobs,” wrote one payday advance worker in response to the poll. A potential rate cap of 36 percent APR is rumored for online payday advance outlets and also the more visible storefront locations. Such a low ceiling would make it all too difficult for many payday loan lenders who fail to diversify and operate under a less restrictive lending license. These lenders would discover it impossible to meet expenditures for instance payday loan employee salaries, let alone turn a profit.
There’s too much money advance regulation already
Many have argued the combination of local and state regulations on the payday loan industry have been 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. As one reader who is an employee of a small payday advance business commented on a money advance industry-related blog called the Payday loan Blog:
“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.”
AboutPaydayLoan.com
aboutpaydayloan.com/
Payday Loan Blog
paydayloan-blog.com/
PR Web
prweb.com/releases/2010/08/prweb4344874.htm
No comments:
Post a Comment