CFPB Delays & What They Mean for Payday Merchants

Dec 29, 2014

The CFPB, or Consumer Financial Protection Bureau, has delayed three major announcements and implementations for 2015. While some are happy that these new regulations will not happen as expected, the vast majority of merchants and customers are not. While its delays could harm merchants, there are things that you can do to protect your payday loan business, regardless of their lack of action.

The agency’s recently released semi-annual agenda said it anticipated it would issue proposals on overdraft protection, debt collection and payday lending sometime in the first seven months of 2015. That means those three rules likely will not be finalized until 2016 if they stay on the current track. Overdraft protection helps protect not only merchants, but everyone with a banking account. Debt collection regulations help everyone, from loan officers to consumers to even the firms that work to collect the debt. Their new regulations for payday loans are especially important, as the past few years the government has cracked down on sky-high interest rates when it comes to these loans. These talks have also been going on since 2013, so this delay further affects the industry.

You need to make sure that regardless of any changes, or lack of changes, that your company is secure. You need to make sure that you employ an experienced merchant account provider, such as eMerchantBroker.com, for your payday loan merchant account. While many merchant account providers claim to accept payday loan merchants, they are not experienced and educated on the industry to know what to do if something goes wrong. For instance, chargebacks are common with payday loans. Many times, a merchant account provider will drop a business if a chargeback occurs. We at eMerchantBroker.com know that this is something that goes along with the industry, and we can help you figure out if the charge is fraudulent, or just a regretted decision.

If you are a payday loan merchant, you need to make sure that you are employing an experienced and knowledgeable merchant account provider. You need to look no further than eMerchantBroker.com for your new account and chargeback suite.

 

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