Financial overhaul will effect payday lending
Posted by AlLast week the senate voted 60-38 to pass the financial overhaul bill. This bills is intended and design for tighter control the financial industry including the lenders including the payday loans lenders.
Federal government will introduce new rules and regulations on payday lenders such as caps on payday loans and fees charge. Many payday lenders think they are bing over regulated by their State and local governments such as counties and cities, and more regulations and control from federal government will only hurt their business.
Some states like Illinois and California have really tight caps on payday loans, and some US states like New York and Arizona don’t even allow them. Payday lenders claim additional regulations from federal government will force many of the lenders to either go out of business or downsize hence to lay offs. Payday lenders employ thousands of Americans across the country. They provide jobs that can not be outsourced.
For example Pay1Day, proudly, employs over 100 employees and hopes to grow except fear of new regulations will only slow down expansion of our business and process of hiring more employees.
Instead of banning and over-regulating, it would be much better if congress tries to create and promote a responsible payday lending where payday lenders would compete thus reducing their fees and etc.
