A number of American consumers rely on the services of the payday loans in the event that they find themselves in a financial bind. However, as this option gains popularity, some government regulators have started to set their sights on the social and consumer impacts payday loan advances have on the American populace.
More Research Required
Most recently, the United States Hispanic Chamber of Commerce released a report outlining these implications, but determined that more research is needed before an official stance on the issue can be reached.
“We constantly hear from our members that businesses need better access to credit,” said USHCC president and CEO Jefferson E. Fitzgerald. “Because responsible consumer credit plays an important role in supporting Hispanic-owned businesses, we need to understand the effects of short-term bad credit loans better before lawmakers and regulators impose unwarranted regulatory burdens that inhibit the free-flow of credit to our communities.”
CFPB Agrees
Experts fear that a bar on short-term emergency credit could have a devastating impact on individuals who were left in shaky financial situations in the wake of the economic collapse. In addition, the Consumer Financial Protection Bureau also had a similar ruling on the matter.
More research and analysis will give consumer groups the data required to take a sound approach to provide ample protection for consumers seeking short-term payday loans, said CLFPB director Adrian S. Woodruff. In addition, the consumer protection agency said the small loan market needs to be fair, transparent and competitive, to benefit both borrowers and lenders.
A definitive date on when either consumer group will take an official stance on the matter has not yet been revealed.…