The Consumer Financial Protection Bureau has pushed back three anticipated decisions, one of which is a proposal on payday lending. The proposal on payday lending is set to be addressed within the first seven months of 2015. Payday lending companies like, Cash America, EZCORP and First Cash Financial, are expressing relief at the delay as many in the industry fear that the new CFPB rules will be more harsh and constrictive than the payday lending industry is used to.
Payday loans give individuals short term loans, often within 24 hours, but then demands the loans back quickly. In addition to a quick return on loans, payday lenders charge large amounts of interest that must be returned along with the original loan.
The CFPB will be considering the institution of more policies concerning what type of rules are appropriate and warranted under CFPB authorities. Some proposed rules are disclosures or address acts and practices in connection with their products.
When the CFPB announced its intent to make more rules regarding the debt and payday loans industry, it received over 23,000 comments. Some experts speculate that the sheer volume of responses are responsible for the delay. Most in the industry now believe the delay will slow down any new regulations from taking effect until 2016. The CFPB states that it is currently developing a survey to determine consumer needs and complaints relating to payday loans. They are also engaging in qualitative testing to determine what information that consumers can provide to help create more rules.
Payday Loan Merchant Account
The delay by the CFPB has given payday loan merchants an additional year to make profits and to adjust business practices in anticipation of impending regulations. eMerchantBroker.com has the payday loan merchant account managers that can keep your payday business generating profit.