Consumer Financial Protection Bureau Director Richard Cordray said the bureau fully intends to be the cop on the beat taking on the four Ds: Debt traps, dead-end markets, deceptive marketing and discrimination.
Bureau reiterates focus on payday lending, concerned consumers are getting trapped in the loans.
In response to questions raised by an investigation into the FDIC's Operation Choke Point, NCUA Board Chairman Debbie Matz said the NCUA does not directly consider reputation risk in its supervisory actions.
NCUA chairman tells Congress the agency measures reputation risk using objective qualitative assessment factors.
Jamie Fulmer, vice president of public affairs for payday lender Advance America, says he welcomes the opportunity to work with the Consumer Financial Protection Bureau, because consistent disclosures would allow his product to be measured by the same metrics as competing short-term credit union loans.
Short-term loans are in demand. According to a recent Wall Street Journal report, payday lender and pawn shop share prices jumped in October. Some credit unions are taking this opportunity to provide similar products, but at a lower cost and with a different philosophy in mind. While payday lenders encourage...
One payday lender is using Native American lands to skirt state consumer laws, the Center for Public Integrity alleged.
On the heels of a report critical of some credit union payday loan alternatives and just as the NCUA has proposed regulations governing short-term,
Moneytree Inc., a Seattle payday lender, was hit late last week with a cease and desist order by Washington state regulators alleging the firm allowed borrowers to take out an excessive number of loans violating rescinding rules.