Bill Would Curb Oversight of Payday Loans; Pawnshops, Check-Cashing Places at Issue

The Washington Times (Washington, DC), July 12, 2012 | Go to article overview

Bill Would Curb Oversight of Payday Loans; Pawnshops, Check-Cashing Places at Issue


Byline: Cory Brown, WASHINGTON TIMES

A group of bipartisan lawmakers is pushing a plan to exempt pawnshops, payday lenders, check-cashing stores and installment lenders from oversight by President Obama's new consumer finance watchdog agency, saying the oversight could restrict credit and economic opportunities for lower-income and inner-city customers.

But the Consumer Federation of America and other advocacy groups say the move runs the risk of undercutting a key power of the new Consumer Finance Protection Board (CFPB) while leaving vulnerable borrowers prey to risky, high-interest loans that leave families and small businesses high, dry and deeper in debt.

The bill, sponsored by Rep. Joe Baca, California Democrat, and lawmakers from more than a dozen states, would establish a new federal charter for non-bank lenders that would not only bypass the CFPB but also effectively block many state-level consumer protection laws.

Mr. Obama's 2010 financial regulatory overhaul gave the new consumer financial agency broad powers to oversee both bank and non-bank lenders. A number of states already regulate quick loans with rules on interest rate caps, loan limitations and disclosure forms.

But Mr. Baca and other bill sponsors say their proposal is meant to establish a vibrant, safe, and commercially viable market for underbanked and unbanked individuals to gain access to financial services and products.

The Federal Deposit Insurance Corp. estimates that more than 60 million low- and moderate-income consumers in America have little or no access to traditional commercial banks. The rates are even higher for blacks, Hispanics and other minority groups.

Prominent consumer rights groups, including the Center for Responsible Lending and the Consumer Federation of America, have come out against the bill. The Office of the Comptroller of the Currency, which would issue the new non-bank charter under Mr. Baca's bill, does not have the same primary mandate to protect consumer interests, they argued.

This shift exposes consumers and the financial services marketplace to the very dangers that contributed to the economic crisis, the letter said. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Bill Would Curb Oversight of Payday Loans; Pawnshops, Check-Cashing Places at Issue
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.