As politicians continue to consider implementing new regulations that could hamper the efforts of short term lenders, those who benefit from payday loans are coming forward and expressing their desire to have the industry be left alone.
According to the Community Financial Services Association of America, the House Financial Services Committee has been inundated with thousands of letters from payday loan users who want to “preserve access” to the loans. The letters arrived as the committee was discussing the formation of the Consumer Financial Protection Agency, a new oversight committee that would govern consumer credit agencies including those who offer short term loans.
“It is obvious from the letters that people who have used payday loans fully understand the terms, greatly appreciate the option and do not want Congress to limit their credit choices,” said D. Lynn DeVault, president of them CFSA. “The payday lending industry is unique in that customers like the product exactly as it is. I don’t think banks, credit cards or even credit unions can say the same.”
Additionally, regulations are being considered to institute rate caps to lower annual percentage rates for loans that Ernst & Young said last week could “cripple” the industry if instituted.
