The CFPB’s Payday Lending Rule is really a Grand Slam for Banks and Credit Unions

The CFPB’s Payday Lending Rule is really a Grand Slam for Banks and Credit Unions

The CFPB’s Payday Lending Rule is a Grand Slam for Banks and Credit Unions

Beth Planakis

Director of Advertising, Velocity Systems

It’s hard to believe it is been seven years because the creating regarding the CFPB, however it’s an easy task to keep in mind just just exactly just what fueled its creation – a crisis that is financial Us citizens hadn’t seen considering that the Great Depression. And that which was probably one of the most flammable fuels in the fire? Mortgages. Especially, mortgages that customers couldn’t n’t afford, could comprehend, and for which, in years prior, could not have qualified.

Therefore, within the 2010 Dodd-Frank Wall https://mycashcentral.com/payday-loans-la/slidell/ Street Reform and customer Protection Act, the CFPB ended up being created to safeguard consumers from unjust, misleading or abusive methods in financial services to their dealings and items. Luckily, the subprime mortgage crisis has because been reigned in, nevertheless the bureau continues observe other styles of predatory lending – specifically, high-cost pay day loans.

The CFPB has pushed banking institutions to supply better options to payday that is high-interest. Talking to the Wall Street Journal in February 2016, Richard Cordray said: “I personally think banking institutions and credit unions could be low-cost providers of small-dollar loans. I believe that working together with banking institutions and regulators included, there would and may be a capability in order for them to provide decent items.”