A Possibly Gloomy Future for Fast Cash Loans and Consumer Financial Protection Bureau Under Trump

Donald Trump from the initial days of his campaign has been very vocal regarding his dislike for the regulations under the Consumer Financial Protection Bureau which was set up on 2010 in relation to the protection of consumer rights. It was not an unknown fact that everyone was very much sure about the possible dim future of the CFPB after Trump’s win in the Presidential election. The transition plans are in the process and it can definitely be inferred that the regulations under the CFPB are not going to remain the same and will definitely undergo a lot of changes, affecting the fast cash loans the most.

Will CFPB Undergo Annihilation?

The regulations encircling the CFPB were not something that was favored in the initial days of its proposition and was opposed by a number of lawmakers. It is Congress who is scrambling for ways to get to dismantle the entire agency but the Democratic filibuster is acting as a restriction in the process.

A member of the U.S Public Interest Research Group, Ed Mierzwinski reported that several of the anti-CFPB lawyers are seeking ways to sneak through this filibuster and be able to enforce laws to break down the entire agency. The lawmakers are suggesting independent bills to put a halt to the independent funding and simply opt for the commission type of funding.

The Strongest Opponents

While many people were definitely not in favor of CFPB and the regulations it inflicts but the most important person that has been anti-CFPB is the Chairman of the House Financial Services Committee, Rep. Jeb Hensarling. He is the one who is most likely to take the place of the Treasury Secretary.

He was the only one amidst the House Members who received contributions for his campaigns from the commercial banks. According to collections and statistics, it was found that the total contributions for the campaign amounted to over $1.9 million.

It doesn’t matter if Hensarling finally becomes the Treasury Secretary or not but his ideas and influences have already started affecting the upcoming changes regarding the CFPB. The reforms suggested by the Trump transition team is almost identical to the proposals that Hensarling previously proposed.

The Possible Changes

The most prominent opposition and appeal for changes are not made from the Transition team or even the anti-CFPB activists but from the courts. It is the head of CFPB, Dr. Richard Cordray whose power and authority has come into question. Most of the Congressmen were really upset about him coming into power and even opposed in the initial days until he was vetted by the legislature.

According to the implied rules, even the President cannot simply evict the director of the agency as per his wish. It would require a reason and implied proofs as to the show the incompetence for the removal of the director from the post he is serving.

Many of the enthusiasts are pretty much assured that Cordray might have to end up packing up his desk and come out of power after his term ends in the first month of 2018. People are speculating that the transition team under Trump has already decided on a replacement for the position and will appoint them once the former head retires. While the prior CFPB was unconstitutional, the newest changes might see the agency as a multi-membered group headed by a qualified interim director. The funding that currently comes from the federal reserves might switch to the congress. This prior proposition has been made around since the last five years but none of it has been applied till now.

The several of the bank-backed lawyers have tried to throw some light on the less talked about controversies regarding the fast cash loans and the forced arbitration which might come in handy whilst trying to dismantle or reinforce several laws under CFPB. A number of pending changes in the financial services are still in question based on the future of the head of CFPB, Cordray.

Financial policy of Trump- Indicators to watch out for   


Imagine it is the mid of the month and you need some money and your salary has all been spent in mortgages and bills. Cash advance loans to your rescue. These are the loans taken for very short period and are payable on your next payday. Easily available, these loans are beneficial as well as have some disadvantages.

After the election of Donald Trump in Oval office, the speculation has been rife regarding the financial services and their regulations. Experts such as bank lawyers and analysts are deeming the changes in the finance arena.

As Mr. Donald Trump has already stated that he will look to dismantle the Dodd-Frank Act with his financial services team but on the other hand Charles Schumer, the incoming Senate Minority Leader says that he has votes to block the repeal of the law. This is the most distinct sign of impetuous disagreement over few issues, case in point Dodd-Frank Act.

The other signs of the clash come from different parties such as political rivals. Senator Elizabeth Warren is the force to look out for. The number of democrats supporting her would give a clear indication if the whole senate would be united in opposition to the administration. Above mentioned are the views of Eric Mogilnicki, who is a partner with Covington & Burling in Washington. The short term signals to watch for financial reforms are-

FED vice chair position

The empty position of Vice-chair for supervision at Federal Reserve was made by the Dodd-Frank Act but was never filled. If it is filled now, it would mean that even the other rules of the act are questionable, says Ed Mills who is a financial institutions analyst with FBR & Co. He further says that this move means to nominate Fed Governor Daniel Tarullo’s boss who was in effect looking after the functioning of the empty position.

Authoritative voice

Everyone will be looking for authoritative voice on what will happen and how. Not only the key position but also the low-tier appointees might play a huge roles and important roles.

People want to know the next authority figure in the finance arena. But they are asking in hushed tones. Mills says that the Republicans might play a bigger role than previous congresses. As the President has not articulated the policies clearly, it is very much possible that others will spell out the agenda. Republican congress has well-articulated policy positions which suggests that they will have the power of influence.

Energy & infrastructure boost

Financial regulatory reform in itself might not be a priority but infrastructure and energy sectors will need these reforms for their growth, thus it will be introduced as a way to speed investment says Margaret E. Tahyar, a partner in New York with Davis Polk’s financial institutions group. She also said that Republican coalition needs to deliver growth and jobs in heartland which invariably means to free up the banking and financial services to make investments in infrastructure, energy, and small and medium-sized businesses.

CFPB test

Consumer Financial Protection Bureau, which is a brainchild of Elizabeth Warren is also being followed closely as it has asked federal appeals court to rehear October ruling. Right now President could remove CFPB director Richard Cordray anytime. Including other things CFPB can expedite big enforcement cases which are close to be finalized.

DOL fiduciary rule-

Department of Labor’s fiduciary rule is also something which has everyone’s eyes on it, if it is delayed as is expected of President Trump that means financial services policy is in full play. This suffices to say that the future of cash advance loan is uncertain.

Consumer Mortgage Complaints Highlighted in Latest Report from CFPB

It looks like consumers are still having a lot of issues when it comes to the servicing of their mortgage loans. Additionally, lots of people have been complaining about it being difficult to make their loan payments to their lenders. All of this information comes via the most recent monthly complaint report from the folks over at the Consumer Financial Protection Bureau. As of the beginning of April, the CFPB has taken in almost 856,000 consumer complaints related to the various financial products/services that the bureau currently regulates.

A Breakdown of Consumer Complaints made to the CFPBquestioning-nerd

In this report, there were listed 5,111 complaints related to mortgage issues filed in March of this year. That makes for a 13 percent increase from the previous month. There were also a little over 4,600 mortgage complaints that came in during the first quarter of 2016. That is an over 20 percent increase from the 3,800 complaints that came in during the first quarter of 2015. Going back to when the CFPB first started taking and keeping track of complaints from customers – back in 2011 – the average number of mortgage complaints per month is 4,217. As of right now, nearly a quarter of a million mortgage complaints have been filed altogether.

Nearly 51 percent of mortgage-related consumer complaints had to do with people having a difficult time paying their mortgage properly. Across the country, the CFPB reported that the monthly average number of complaints about debt collection complaints comes in at 6,818. Overall, the debt collection industry is responsible for nearly 26 percent of all complaints as of the beginning of the 2016 second quarter. Student loan debt complaints took their biggest leap so far, with an increase of 83 percent, due to 1,154 complaints logged in March.

Other Consumer Complaints in the CFPB Report

In the CFPB’s latest report, consumer complaints from the state of California were singled out. In this state, consumers logged 118,900 complaints to the CFPB as of the first of April. Mortgages appear to be the most complained about financial product in this state, which makes sense when the national trends are looked at. Debt collecting in California, however, seems to be less problematic than it is across the country. Debt collection complaints in California accounted for about 24 percent of all the complaints officially received. Of the five highest population states, California had the greatest overall leap in consumer complaint volume, with a growth of about 16 percent, when the stats from the first quarter of 2015 and 2016 were compared.

The Origins of the Consumer Complaint Database

The online source that consumers can use to log complaints about the financial industry is officially called the Consumer Complaint Database. It began in 2012 and was intended to be an online source for consumers to submit feedback and complaints about financial products/services directly to the CFPB. The CFPB is responsible for maintaining this data and following up on the complaints that are logged. Additionally, the CFPB makes regular reports that highlight the most troubling issues, as well as providing a general idea of consumer issues to the general public.

CFPB Needs to Make Better use of its own Consumer Data

With the CFPB making it a point to target industries, like the payday lending industry (which receives almost no complaints made to the CFPB database) it makes one wonder when the bureau will get its priorities together and begin to focus its resources on the sectors that are so far responsible for the lion’s share of consumer complaints.

One Thing Rich People do that we ALL Need to Start Doing Right Now

By now, most of us know that it is wise to put money away in savings, and that we should all be doing this more than we already are. However, saving money is not always easy. One group that has seemingly no problems saving money, however, is the richest people amongst us. The super wealthy seem to have this whole saving money thing down to a science.Save-Money-1-537x402

This should not surprise any of us, but the reason that the super wealthy are able to put money aside is not simply that they have more of it to play with. A recent survey conducted by the Bank of America U.S. Trust – the division of the bank that manages private wealth – found that a large portion of wealthy individuals actually started the habit of saving money back when they were teenagers. The survey drew data from about 700 people, and was designed to offer insight at the behaviors and attitudes of very rich people. The respondents in this survey had to have a minimum of $3 million in assets, and 30 percent of them have in excess of $10 million.

More than anything, this report shows the discipline and responsible behavior that wealthy people seem to adopt early on in life. On average, the study shows that these folks started seriously saving money when they were around 14 years old. This should not be surprising, as other studies have shown that about half of teenagers in this country have some type of savings account. We must consider the fact that many rich people are born into money. Still, though, the fact that they start to save money early on could be because they have financially responsible people around them more so than any innate ability that they have to make saving money a priority.

However, the study showed something unique with regards to when these people started working for income and investing money in stocks. Most of them started working regularly at 15 and started investing in stocks at 25. These figures are a bit different from the rest of the population, where most folks start working when they are 16. And data from a Fed report shows that just under 14 percent of total U.S. households own any stock at all.

Another interesting thing that can be learned from this survey is just how these people were able to build up so much monetary wealth. Across the board, about 52 percent of their wealth came in via regular income, and 32 percent came in from outside investments. Related studies seem to show that most of this wealth winds up going into savings accounts of one form or another. Published data shows that most households that save only put about 5.4 percent of their money into savings, while the wealthiest one percent of the country manages to sock away as much as 51 percent of their money.

Most of us don’t have the luxury of being born into a lot of money. And the majority of people in this country don’t really take time to learn a lot about finances. However, we can all see that wealthy people clearly value saving money as a lifelong habit – and one that it started off early in life. The rest of us may not be able to save as much as those folks, but we can benefit from the lesson learned and begin to put as much of our income away in savings as possible. That way, we can be prepared for emergency expenses, retirement and maybe even have some left over to pass on to our children one day.

Former FDIC Head Joins Board of Online Lending Group

In a move that may prove to be quite surprising to some financial analysts and experts, Sheila Bair – formerly the head of the United States Federal Deposit Insurance Corp. – is taking on a new role. Bair is set to join on as a member of the board or an online lending group called Avant. All of this comes at the same time that the CFPB and others in the government are making serious efforts to regulate the world of online lending. Of course, with online loans quickly becoming more and more popular in recent years, it is somewhat easy to understand why certain government watchdog groups are interested in creating new, more stringent regulations. After all, that seems to be one of the only things our government consistently does.sheila-bair

Avant was founded by a former payday lender; one who made millions in this industry. And the company is growing rapidly. It just launched about three years ago and has already originated upwards of $3 billion in loans. Most of these loans were given to American consumers who did not exactly have spotless credit histories, either.

In a recent interview Bair said, “I really want there to be more innovation and competition serving this segment… it’s underserved.”

Online lending has been taking off like crazy in recent years. This industry is growing rapidly due to a number of startup companies that are working to make online lending a better experience for both individuals and small businesses. All of this growth, related to money as it has been, has certainly drawn the attention of financial regulators, like the Treasury Department and Consumer Financial Protection Bureau. Just recently, the U.S. Comptroller Thomas Curry stated that his group is on a mission to create a framework that will regulate what is often referred to as the “fintech” industry. This industry includes a wide range of services, like online loans and mobile payment processors.

As regulators and watchdog groups continue to scrutinize the industry, new lending company startups have been doing what they can to land former regulators and to bring them on board. Prosper Marketplace Inc. now includes Raj Date as a board member. Date was previously the deputy director of the Consumer Financial Protection Bureau (CFPB.) LendingClub Corp recently pulled in former Treasury Secretary Lawrence Summers.

Bair was the leader of the FDIC from 2006 until 2011. She often had clashes with leaders of the Treasury. These clashes were often related to how the government dealt with large banks during the last financial crisis. She fought hard for new rules that would make lenders add capital and to cut back on risky behavior. Some of the changes Bair championed wound up being included in the Dodd-Frank legislation and has led to stricter financial regulation in the United States.

Back in 2015 Bair became a board member for the largest lender in Spain, Banco Santander SA. She winded up parting ways with this lender after just a year and accepted a position as the president of Washington College, near Baltimore.

According to Avant CEO and co-founder Al Goldstein, “Sheila’s proven track record and expertise in the financial services and regulatory spaces will be invaluable to the Avant team.” Goldstein has stated that he would like Avant to ultimately turn into “the Amazon of financial services.” The company was valued by investors at about $2 billion when funds were raised for it back in 2015. The company puts a heavy focus on providing installment loans to consumers, with the average loan amount being about $8,000.

Can You Budget Smarter and Keep Finances under Control with a Prepaid Card

While nearly every financial “expert” out there seems to go on and on about the importance of sticking with a budget, and with nearly all of us agreeing this is important, we all have to admit that sometimes we fall short of sticking with our budgets. Even the most frugal people in the world have weaknesses, and may find themselves spending too much on eating out, pursuing hobbies or simply overspending sometimes. When these types of spending sprees get too out of control it can be difficult to reach your long term financial goals.6280507539_f32a72be10

If this all sounds like doom and gloom, remember that you are not alone. Millions of consumers all over the country have a hard time getting their spending habits under control. The traditional method of putting extra money aside and accounting for every penny spent and earned just does not work for everyone.

There is another way to keep your spending under control – prepaid cards! Reloadable debit cards can empower some folks with the money management skills that they need to keep their spending on the straight and narrow. Remember, prepaid cards are not like traditional debit cards, which are connected to your checking account, with all the funds in that account at their disposal.

A prepaid card begins with no balance and you control how much money goes in by “loading” the card with money that you will use to make purchases, pay for meals and to take care of any expenses you choose to tackle. Once the prepaid card reaches a zero balance, you can no longer make any purchases. These cards effectively work as a stop-gap against overspending, and allow you to set your own, personal limits on how much discretionary spending you do on a monthly basis. It is easy to figure out how much you usually spend and need as “walking around” money. You simply load the card up with that amount when you have the money, and you are all set.

When you use a credit card for this type of spending, it is easy to wind up over your head in debt. When you use your bank debit card, you could spend too much and wind up with expensive overdraft fees. And when you use cash, it is often tempting to spend too much and to keep hitting up the ATM for more. With a prepaid card, once your funds are gone, you are done spending.

Prepaid cards are not the ideal solution for everyone. But for people who can’t seem to stick with a self-imposed budget using other financial products, they may be the missing piece of a successful spending plan equation. These types of cards even offer online tools and apps that you can use to track your spending and to see how much you have in your account. Remember, though, that prepaid cards will not earn any interest on your money. Therefore, a prepaid card should not be used to replace a savings account that allows you to accrue interest on the money in your account. Other than for daily discretionary spending and maybe spending on a vacation, it is probably better to stick with other alternatives.

If you have tried and tried to get your daily/weekly/monthly spending under control, a loadable, prepaid debit card may prove to be a valuable tool that will help you to keep your finances on track. Consider trying one for a while. If it works for you – great! If it doesn’t work for you – it is easy enough to get the card to a zero balance and then to switch to another method of budgeting your cash.

Comcast Sends Paying Customers to Collections Agency

Comcast is one of the largest cable providers in the world. You’d think that a company like that would have their act together. However, it appears that they have made some serious slip-ups as of late; slip-ups that have a large portion of their customer base very upset. People who have been happy customers of the company for years have been forced to spend hours of their own valuable time to try to fix billing mistakes that the company has caused. It turns out that Comcast has taken additional money from some customers by way of automatic payment technology and they have even turned some of these paying customers over to collections agencies. These agencies have contacted these wronged consumers to demand payment – on bills that people didn’t even legitimately owe on.confused

According to one customer who was wrongly accused of not paying his bills, “I called Comcast a total of 10 times beginning 5/31/2014 and wasted at least 10 hours of my life trying to fix a problem that they created. In making those calls I was hung up on, transferred, and dismissively told to just wait it out.” Talk about being mistreated by a huge company: this guy not only got accused of not paying his bills, but he was subject to being dismissed by customer service employees who should have been more than happy to help him out.

The customer that we just told you about reported that the problem was supposed to have finally been fixed back in November of last year. However, he has had to continually call Comcast up to this very month and has still not had any satisfaction on the issue. This Comcast customer went on to say, “It blows me away that the burden is on me to fix their mistake and that it is taking so much of my resources. I really would like to bill them for my time.” He went on to explain that he is very concerned that these issues are going to lead to his credit score getting dinged in the very near future…

Journalists contacted Comcast after hearing about this situation. They were referred to the PR group for the company. A spokesperson for Comcast indicated that research was being done on the issue. After that statement, it was not too long before the company contacted the jilted customer to let him know that the issue had, indeed, been resolved.

It seems that this billing mistake took place when the person moved two times over the course of only three months. He had spent some time living with his parents, while he waited for closing on his new home to be complete. The error was supposed to have been caused by the cancellation of his existing account and the moving to a new home.

According to the Comcast customer, “Apparently they need to link your accounts when you move, and Comcast neglected to link my first location to the second and so continued to bill me for service I no longer had. They did, however, link my second to third location and so there was no problem with that move.”

This person realized that Comcast was still charging him for service at his previous address, and contacted them to get it fixed in late spring of 2014. He happens to have also stopped automatic payments to the company to stop them from taking even more of his cash. However, before he did this, the cable provider took an extra $176.77 from his bank account without telling him about it.

People need to pay close attention to the companies that they make payments to every month. Comcast may not have been charging this person extra on purpose, but they sure took their time in actually resolving the issue for him. Don’t let the big companies take advantage of you like this.