AFSPA

    On March 26 the Consumer Financial Protection Bureau (CFPB)
    released it's proposal that would cover "payday loans, vehicle title
    loans and certain high-cost installment and open-end loans".
    "Today, the Bureau is publishing an outline of the proposals under
    consideration in preparation for convening a Small Business Review Panel to
    gather feedback from small lenders, which is the next step in the rulemaking
    process. The proposals under consideration cover both short-term and longer-
    term credit products that are often marketed heavily to financially vulnerable
    consumers. The CFPB recognizes consumers' need for affordable credit but
    is concerned that the practices often associated with these products - such
    as failure to underwrite for affordable payments, repeatedly rolling over or
    refinancing loans, holding a security interest in a vehicle as collateral,
    accessing the consumer's account for repayment, and performing costly
    withdrawal attempts - can trap consumers in debt. These debt traps also can
    leave consumers vulnerable to deposit account fees and closures, vehicle
    repossession, and other financial difficulties."
    "The proposals under consideration provide two different approaches to
    eliminating debt traps - prevention and protection. Under the prevention
    requirements, lenders would have to determine at the outset of each loan that
    the consumer is not taking on unaffordable debt. Under the protection
    requirements, lenders would have to comply with various restrictions
    designed to ensure that consumers can affordably repay their debt. Lenders
    could choose which set of requirements to follow."
    A factsheet summarizing the proposals under consideration: http:
    //files.consumerfinance.gov/f/201503_cfpb-proposal-under-consideration.pdf
    A factsheet summarizing the Small Business Review Panel process:
    http://files.consumerfinance.gov/f/201503_cfpb_factsheet-small-business-
    review-panel-process.pdf
    An outline of the proposals under consideration will be available on
    March 26 at: http://files.consumerfinance.gov/f/201503_cfpb_outline-of-the-
    proposals-from-small-business-review-panel.pdf
    A list of questions on which the Bureau will seek input from the
    small business representatives providing feedback to the Small
    Business Review Panel: http://files.consumerfinance.
    gov/f/201503_cfpb_list-of-questions-from-small-business-review-panel.pdf
    This is the first public step in the CFPB's efforts to reform the markets for
    these products. In addition to consulting with the Small Business Review
    Panel, the Bureau will continue to seek input from a wide range of
    stakeholders before continuing with the process of a rulemaking. Once the
    Bureau issues its proposed regulations, the public will be invited to submit
    written comments which will be carefully considered before final regulations
    are issued.

    CFPB's CORDRAY HAS NO REAL ANSWERS, JUST A PHILOSOPHY
    Director Richard Cordray defended the CFPB's decision to proceed with a
    rule on payday lending during the bureau's Semi-Annual Report to Congress
    Tuesday.
    Rep. Lynn Westmoreland (R-Ga.) said a lot of his constituents live paycheck
    to paycheck, and he asked Cordray where consumers should go if they are
    in need of a small loan.
    "If you were me, what would you tell them if they came to me and said they
    had an emergency and they needed to get $50 or $100 for a week or three
    or four days? Where would you advise me to tell them to go to get that kind
    of credit?" the congressman asked Cordray during the House Financial
    Services hearing.
    In response, Cordray said, "There's any number of places, but I don't
    generally stand in the shoes and try to tell consumers what to do."
    Westmoreland shot back, telling Corday, "Well, you tell them what they can't
    do and that's my point. I was in the building business and I've loaned people
    $20 or $50 or $100 that had come to me because a child was hurt, a
    transmission was out, had to turn on their electricity."
    Westmoreland said the CFPB has told these individuals they do not have
    enough sense to manage their own financial affairs.
    "You're trying to make rules that puts out payday lenders, pawn shops,
    prepaid credit cards where people can have an overdraft protection so the
    card wouldn't be turned down if you're going to a drug store to buy medicine
    for a child," he said.
    Cordray said the CFPB is at the beginning of a rulemaking process on payday
    lending and other small dollar loans.
    "That will unfold and there will be a lot of public input into it," Cordray said.  
    "We believe people need access to credit for those purposes, exactly the
    kind of things you are talking about, emergency needs, but we should not
    easily tolerate that people end up rolling loans over and over and they end up
    paying far more in fees than they borrowed in the first place and they're in a
    debt trap."
    House Financial Services Chairman Jeb Hensarling (R-Texas) asked Cordray
    what states have inadequate protections to justify the CFPB's involvement in
    payday lending.
    "We're trying to calibrate and understand a market and gauge the potential
    for consumer harm. We have been careful and thoughtful and thorough in
    our approach to this," Cordray said.
    Hensarling asked why the CFPB is pre-empting the current legal structure
    on payday lending.
    "When you say pre-empt, that's sort of a loaded term. I don't know what
    pre-empt means here and we have not embarked on specific notice of
    comment of rulemaking yet," Cordray said.
    Cordary declined to mention specific states the CFPB thinks have inadequate
    protections on payday lending. "I'm not thinking about it in that way," he said.

    Operation Choke Point had serious opposition from payday
    lenders BUT the shit really hit the fan when it messed with gun
    dealers!
    "Operation Choke Point is one of the greatest threats to our nation's
    economic security and free enterprise. If the President can unilaterally
    decide what businesses should or should not exist, without the consent
    of the people or the representatives they elect, it will have enormous
    consequences for limited government and for our economy." - Former
    Speaker of the U.S. House of Representatives, Newt Gingrich

    Congressman Reintroduces Bill to End Operation Choke Point
    Rep. Blaine Luetkemeyer, R-Mo., today reintroduced legislation to end the
    Justice Department initiative known as Operation Choke Point.
    “While steps have been made in the case against Operation Choke Point,
    there is still a need for my legislation to be reintroduced this Congress,” he
    said in a press release. The legislation, which Luetkemeyer previously
    introduced last November, comes one week after the Federal Deposit
    Insurance Corp. (FDIC) walked back its involvement in the program and
    reversed its policies in targeting legal and legitimate industries that are
    disfavored by the Obama administration.
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