By: Jer Ayler. “Even if we assume for purposes of argument that including in the Notification every consumer finance law and regulation imaginable as adequate notice of the “alleged violations,” by no stretch of the imagination does the Notification speak to the “nature of the conduct” which is under investigation for the alleged violation. Put simply, what is it you think we did wrong? Does it involve advertising? Handling of complaints? Advanced vetting or monitoring of customers (if such was ever required!)? Particularly given the absence of federal rules governing payday lenders, the absence of rules anywhere purporting to govern lead generators, and the great variety of rules in those states which do regulate payday lenders, if this investigation to date has not been a pure fishing expedition motivated by an intent to indirectly throttle payday lending through an attack on a lawful business perceived by CFPB and other federal and state departments and agencies to be a “choke point” for payday lending, plainly CFPB must have some knowledge of the nature of the conduct it believes to be unlawful.”
“This investigation is entirely focused on Selling Source. We are well aware that since the beginning of 2015 at the latest, CFPB has had a formal or informal “MoneyMutual Team,” which may include involvement by state agencies such as the New York Department of Financial Services and other federal department or agencies. We know CFPB previously agreed to cooperate with other federal departments and agencies in Operation Choke Point, targeting lawful businesses as a means of ‘choking off’ payday lending. The CIDs issued to date have not sought to develop information concerning any other person or entity other than Selling Source, and we question whether similar CIDs are going to any other lead generator. For the Notification of Purpose to suggest that this investigation is broader in scope than is actually the case is inappropriate, misleading and inadequate.
You may read the Motion to Set aside the CFPB’s CID in its entirety here: Petition
Get our newly updated “PaydayLoan Bible” here: “Bible”
The payday loan-small dollar credit industry continues to fight the good fight. However, an administration source was quoted as saying: “On Wednesday, House Republicans are looking to sneak an amendment into HR 1195 that would cut CFPB funding. To be clear, any attempt to limit funding at the CFPB is an obvious effort to weaken the important consumer protections put in place following the financial crisis.”
“In the Dodd-Frank Act, Congress took important steps to promote accountability by the CFPB, such as by constraining its funding more than for any other bank supervisor. The CFPB is the first dedicated financial regulator looking out for consumers and protecting them from deceptive and unfair practices. We cannot allow this dedicated watchdog to have its resources limited in this way.”
Today, we’re holding a field hearing on payday lending at 12 p.m. EDT in Richmond, Va. The hearing will feature remarks from Director Richard Cordray, as well as testimony from consumer groups, industry representatives, and members of the public.
Pro or con, YOU MUST view this field hearing. Pay particular attention to the Q & A portion!! Outstanding… NOTE: This is a 3 part field hearing.
Part 2: Payday loan company employees and customers share their heartfelt need for small dollar credit products.
Recorderd by The Team at PaydayloanIndustryBlog. com