CFPB Hits Payday Lending Hard!

Are They Teeing Us Up?

CHANGE IS COMING SOON.

WILL YOU BE READY?

April 26, 2013

Good Morning All,

Following our email from yesterday regarding the attack by the CFPB against payday lending, our law firm, Ballard Spahr, attended our weekly Borrow Smart Compliance workgroup planning meeting yesterday to discuss this attack on payday lending. Needless to say, it is not good news for any payday lender. Jeremy Rosenblum provided us with more insight into this action and, more importantly, the impact this will have on our industry -- short and long term.

We recorded the webinar and will post that discussion for Borrow Smart Compliance members in the member section of our web site at www.BorrowSmartCompliance.com no later than Monday.

Thanks.

- Max

Borrow Smart Alabama

Visit Our Compliance Site: www.BorrowSmartCompliance.com

Questions or comments?

Email us at admin@borrowsmartalabama.com

Direct Tel: 205-733-9926

April 25, 2013

Good Afternoon,

Unless you have been living under a rock for the last few days, you probably know that the CFPB has fired a warning shot directly at payday lending. With Director Cordray's scheduled testimony in the Senate (he was barred from speaking in the House as noted here) the CFPB has launched a massive media campaign that focuses on payday lending (and banks deposit advance lending). We believe there is a strong warning message from the Director.

In their press information they report on payday lending in connection with :

Loose Lending
Risky Loan Structures
High Cost
Sustained Use

You must read the full release from the CFPB here to fully understand the impact of this message.

This can be ominous -- and especially so if you do not have a CFPB compliance strategy in place!

While our law firm at Ballard Spahr has summarized this quite well in this report from today, we do plan a special direct member update from them sometime later today or tomorrow.