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

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
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

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

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

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?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
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.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, 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." (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

    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.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.