CFPB’s Un-American Structure and Its Illogical Fight against E Payday Loans Online

CFPB’s Un-American Structure and Its Illogical Fight against E Payday Loans Online

With officials in the country’s capital reassessing the reforms to financial facilities regulations applied after the 2008 crisis, local societies like the ones in Grand Rapids have a lot to lose. The Grand Rapids State Bank and other similar low-scale community banking institutions did not contribute to the collapse of Wall Street. The people and institutions behind the financial collapse were the big banks and brokerage firms of the Wall Street. Yet, they are the ones who still continue to be at the helm of the American economy hiding behind institutions that were created after 2008. The ones who have to suffer the most are the small community banks and low scale payday lenders who provide helpful services like e payday loans online.

One of the biggest concerns to reformers is the federal agency, the Consumer Financial Protection Bureau (CFPB). This independent agency is not answerable for its actions to the Congress. It isn’t even answerable to the White House or the President of the country as a matter of fact. The Consumer Financial Protection Bureau has rolled out a flow of newfangled financial rules so multifaceted and overwhelming that the federal bureau has in due course ended up hurting those it was responsible for protecting and safeguarding their interests- the average American consumers.

Restructuring the Consumer Financial Protection Bureau to improve its answerability will help a lot in the future to rein in immoderations and handle support sturdier economic development at the local level.

Community banking institutions are well aware of the adverse effect of the Consumer Financial Protection Bureau on low scale local money lending business. The Consumer Financial Protection Bureau has issued a horde of regulations that are not strategically planned to meet all the requirements and that fail to sufficiently differentiate between small low scale community banking institutions and the mega banks operating on Wall Street which were supposed to be the target of the policy makers for regulations after the crisis of 2008. These burdensome rules have limited mortgage loaning at approximately three-quarters of local community banks and substituted made-to-order, loans based on relationships with loans that lack originality and meet bureaucratic values – not a single factor that aids consumers. In the meantime, the increasing regulatory load has worsened alliances in the community banking business, which has deteriorated from over eight thousand in 2010 to fewer than five thousand nine hundred at the moment. This has left lesser communities with admission to accountable and trustworthy financial facility providers.

The Consumer Financial Protection Bureau’s complicated regulatory outline poses a palpable danger to the local societies that rest their financial worries on community banking institutions, which bring an uneven load of any regulation due to their lesser size. Luckily, reforming the Consumer Financial Protection Bureau is not as complicated as the regulations it has issued.

In PHH v. Consumer Financial Protection Bureau, a federal appellate court declared that the federal agency holds huge executive authority in its director, Richard Cordray. The appellate court’s verdict, which is under evaluation, pointed out that while other directors of the agency serve at the wishes of the President of the country or lead panels of directors, the Consumer Financial Protection Bureau director is unanswerable to any questions, even by the President and may regulate indiscriminately.

The Consumer Financial Protection Bureau’s structure is highly un-American. Never in the history of the country has an organization held such unquestionable power. Its structure is as dangerous as its fight against payday money lenders and their services like e payday loans online. Many Americans heavily depend on these services and their eradication will cause mass disapproval.