Posts Tagged ‘CFPA’


Consumer Credit Options Trampled in Push for Financial Regulation

Posted by Sara M. Varese

By: Gabriel Rodriguez

The newly proposed and widely debated creation of a Consumer Financial Protection Agency (CFPA) under house legislation (H.R. 4173) have critics questioning how its regulation could realistically help the current state of economic crisis and its potential for limiting consumer credit options.

In an article by South Carolina Senator Jim DeMint, the following was stated regarding Banking Committee Chairman Chris Dodd’s (D-Conn.) proposed legislation: “This is regulation without reform. The bill doesn’t contain any of the answers needed to solve the underlying problems that led to the 2008 banking collapse.”  Senator DeMint further explained that the office will have “sweeping authority” to regulate nearly anything considered to be financial activity, from car dealerships who offer financing, to the many retailers who offer credit cards.

Another concern that the proposed agency seems to overlook is directly related to that of the consumers that they are protecting: what about the raised costs and limited choices in products available for consumers once the legislation is approved?  In addition, the primary entities seemingly concerned about providing consumers with options for short-term or alternative forms of credit are those currently providing said services, and also, the same businesses that are under fire for the proposed CFPA – the Payday Loan Lending or Payday Cash Advance Industry.

Payday loans and other similar types of short-term loans have been on the rise since the early 1990’s, recently booming due in part to the current economic crisis.  This Industry could be one of many forms of alternative consumer credit that faces being “regulated” out of existing sustainability if the CFPA receives the support and authority some senators and congressman are currently seeking.   In addition, the industry will now face new federal laws, on top of existing regulations, in the name of “consumer protection,” while limiting consumer options in the process with no current proposal for alternative consumer credit options to these payday loans.

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New Credit Card Reforms 2010 CFPA

Posted by Sara M. Varese

New credit card regulations, effective Monday February 22, 2010, may be able to give customers more rights to reasonable fees, stable, but not necessarily low, interest rates, and contracts in addition to providing billing statements, and terms that are easier to understand.   These credit card reforms were implemented to prevent abusive and exploitative practices by credit card companies that could result in excessive fees and debt.

Let you know ahead of time Some of these new regulations include requiring credit card companies to give 45 days of notice before increasing interest rates or fees.  As a result, consumers can apply payments to balances with higher interest rates, and to send bills 21 days before their due date in the mail.   In addition, the new regulations disallow the increase of interest rates to customers just because they make late payments on related bills.

Even with these new laws in place, there are still loopholes that allow finance companies to come up with other ways to extract income from consumers through other types of costs and fees.  Because of this cat and mouse game, lawmakers are encouraging the creation of a Consumer Financial Protection Agency ( CFPA ) as a legal entity to protect the rights of consumers.

This financial news posting was brought to you by, a direct payday lender offering fast, easy, and convenient payday loans.

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Consumer Financial Protection Agency (CFPA) Overview

Posted by Sara M. Varese

Growing debate over whether the Consumer Financial Protection Agency should be created over concerns whether the agency would hurt or help consumers and banks.  Below,this article gives an overview of what the CFPA will cover and it’s potential for good and bad.

The CFPA was created to protect consumers from predatory lending practices and would have power and oversight over many financial sectors including mortgages, consumer loans, payday loans, real estate, credit cards, debit cards, debt collection, investment and financial investment services.   With the ability to impose rules and regulations, the CPFA could impose huge fines on banks and lenders who break the rules.  Some of the specifics examples of what the CFPA could do are rewrite truth in lending contracts to make them more consumer friendly, regulate “affiliate” title, escrow, and financing businesses connected to realty firms.

Others argue that the CFPA may not have the full knowledge or understanding of the banking industry and could be more harm than help by adding extra bureaucracy and headache and impede creative options for consumers.   In addition,  the two parties have not been able to agree the exact responsibilities of the CFPA which is the main reason for debate.

This brief news posting was brought to you by, a company dedicated to providing immediate cash assistance to consumers.

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