The financial regulatory overhaul currently being debated in Congress has many industries panicking, including the payday loan sector. The Senate is expected to vote on a slew of amendments this week that may exempt some business sectors from the new regulations.
Payday lenders have hired lobbyists to make their point on Capitol Hill and the sentiment of others can sometimes be seen by visiting their stores. One lender, Chicago-based PLS Financial Services, is encouraging consumers to speak up, as demonstrated by their window sign, “Stop the politicians from taking away your right to the personal financial service you enjoy in this store,” reports the Chicago Tribune.
The payday loan industry, which is already regulated by states, has cause to worry. New lending reforms in some states have placed regulations on the industry that endangers their ability to profit, while others have simply shut lenders down. Federal regulations would impose stricter policies that may hinder the operations of many payday businesses.
One study shows that restricting the short-term loans actually hurts many consumers by limited their credit options. Some consumers, who may not qualify for traditional lines of credit from banks, rely on the industry during financial emergencies.
Similar Posts:
- Wisconsin Governor single-handedly bans auto title loans
- Quick No Teletrack Payday Loan – Enjoy Life With Hassle Free Loan
- The push to include student loan debt under bankruptcy protection
- Personal Loans for Bad Credit Remain Elusive in Tough Economy
- Emergency Cash Assistance Is It Right For You
