President Obama has signed the Financial Reform Bill, and according to a survey by AboutPaydayLoan.com, cash advance employees are worried for their jobs, writes PR Web. As outlined by those who participated in the industry survey, the underlying belief is the formation of the Consumer Financial Protection Bureau (CFPB) will place a federal stranglehold on the operation of cash advance and online payday loan corporations across the nation, making it too difficult for many lenders to continue to operate and nevertheless be able to pay their employees.
Payday loan employees preparing for unemployment
According to one cash advance employee who responded to AboutPaydayLoan.com’s survey, the ripple effect of the Financial Reform Bill has numerous like him looking for higher ground before the storm. ”If CFPB ends up putting a crazy cap on payday cash advances, then we could be out of jobs,” wrote one cash advance worker in response to the poll. A potential rate cap of 36 percent APR is rumored for online cash advance outlets and the more visible storefront locations. That low figure would cripple those cash advance entities who do not diversify under other practicable business models. As you can imagine, this is what payday loan employees fear.
Cash advance rules are strong enough
Many inside and outside the payday advance industry have tried to convince the federal government that the local and state regulations regarding the cash advance product are more than enough to protect consumers. The CFPB and the ensuring regulation they would likely produce would hamper payday advance business. As one reader who is an employee of a small payday advance business commented on a money advance industry-related blog called the Cash advance 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.”
Discover more details on this subject
AboutPaydayLoan.com
aboutpaydayloan.com/
Payday Loan Blog
paydayloan-blog.com/
PR Web
prweb.com/releases/2010/08/prweb4344874.htm
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