We are a tightly regulated industry, some within our industry may say too tightly regulated. Here is clip from some current status of the CFPB’s attempts to help keep the industry free of deceptive practices.
Section 1031 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd Frank”) authorizes the Consumer Financial Protection Bureau (“CFPB”) to issue rules to prevent unfair, deceptive, or abusive acts or practices in consumer financial markets. Under this broad authority, on March 26, 2015, the CFPB took direct aim at short term, high interest rate lenders by publishing an outline of proposals that it is considering preliminary to issuing new rules governing payday loans, motor vehicle title loans, and certain other “high cost” installment and open-end loans. Because of the potential impact such rules will have on small businesses, the CFPB is required by the Small Business Regulatory Enforcement Fairness Act to gather input from a panel of small business representatives selected by the CFPB in consultation with the Small Business Administration. An outline of the CFPB’s proposals, together with a list of questions, will be sent to the panel, which will then issue a report providing its feedback and findings on the proposals’ potential economic impact on small businesses.