Jobs Aplenty, No More Need for Payday Loans Online, Thanks To Donald Trump

President Donald Trump has been rendering most of his anti-elitist campaign orotundity into policy declarations. This aggressive attitude towards breaking of shackles can prove to be a great thing for people who deal with money, people who engage in high quantity fiscal operations, payday loans online, etc. This is because the next shackle in contention for Trump’s dismissal is the Dodd-Frank Act. The heinous act must be gotten rid of as it has made the shifty Wall Street banks a superior danger to the country’s macro economy and especially the common man.direct_payday_loans_pros_cons1

Ever since the government answered for the 2008 financial catastrophe, the big banks, the culprits have gotten bigger in terms of financial power while meek community fiscal organizations have died out at a frequency of one every day. This hard-hitting truth of modern American society was posted on Trump’s official transition website. The statement went on to speak about the fact that taxpayers have remained on the edge despite having bailed out the banks and other financial firms who were considered to be immutable due to their sizes in 2008. The statement also said that Trump’s team of Financial Services Policy Implementation would be looking forward to the dismantling of the Dodd-Frank Act replacing it with original policies, ones that will actually encourage economic growth and create jobs.

Adding to the promise of annulling the Dodd-Frank Act, the statement on his website also outlined numerous policies that he had spoken a lot about in his campaign. They included demands for a suspension of new policies so that the present measures could be revised. The statement also spoke at length about a tax-code refurbishment. It declared the president’s plan to be seen from a broader view as meeker, more reasonable and pro-growth.

The decision to get rid of Dodd-Frank Act is not expected to be received as good news for Senator Elizabeth Warren. Even the staunch Trump critic had nothing bad to say about Trump’s motives. She said that she would be eager to work with the arriving administration to ratify economic and banking policies as long as Trump did not change the existing rules. In remarks arranged for an AFL-CIO labor alliance occasion in Washington, she quoted matters they agreed upon, with the need to limit Wall Street impact in government. The reinstatement of the Glass-Steagall Act restricts banking actions and reform trade agreements. She said that when the time comes for President Trump to take on these issues by implementing new policies keeping in mind his goal of increasing the economic safety of middle-class families, she would happily join in. Warren a Massachusetts Democrat promised to put aside their problems of the past and work with the president to achieve their mutual goal.

The new government’s strategies for a much-needed financial revamp needs certain regulations. However, this could pull from a suggestion which came out previously this year. The proposal was by Representative Jeb Hensarling who is a Texas Republican. He leads the House Financial Services Committee. He had an idea of a bill which was dubbed the ‘Choice Act’. The bill demands the tearing up of the fundamental parts in Dodd-Frank Act. It includes a facility that authorizes the government to pull to pieces banks or financial organizations who have failed in their endeavors. The Texas Republican also wishes to do discard the Volcker Rule limitations on banks’ dealings and investments. His plans also include formulating ways to deteriorate the influence of the Consumer Financial Protection Bureau.

Anyone familiar with financial terms like payday loans online or macro or micro economics should be able to understand the importance of what Donald Trump is doing. Under him, the future looks bright for USA’s stagnant economy.

Sudden Harsher Restrictions On E Payday Loans and Their Effects On the Masses

Situations and moments are very fickle; no one has the slightest of the notion what is going to happen the next moment. While everything may seem like near perfect this very moment, the next moment might welcome about a completely new accident that no one thought about. This was exactly what happened when the news about the newest changes in regulation in the lending of loans was inflicted by the Consumer Financial Protection Bureau (CFPB). While it seemed like a “good” change for some who already have their impending luxuries, this definitely came out as a shock for the people who depend on the e payday loans. These new restrictions were talked down upon by maximum of the citizens who vividly depend on the payday loans in times of need.Banks Are Offering Payday Loan Type Services

What Are Payday Loans?

For a very brief idea about what this entails, Payday loans are the small amount of money that is sanctioned to be loaned to a certain person on a higher rate of interest for a shorter time frame. It has been seen on a lot of occasions that the date of returning the money is often set on the borrower’s pay day but this rule is not applicable all the time. The borrower even has to pay an advance check with the said day when the money is to be returned.

The amount of money that is mostly lent via the payday loans doesn’t exceed $500 and the rate of interests are often under a close margin from $15-$100 depending on the amount of money that is loaned.

What Are the Implications of the Restrictions?

The newest set of regulations and restrictions that are inflicted on the entire lending system of money has affected the payday lending schemes and companies the most as per the calculated statistic made by Competitive Enterprise Insitute. These are those sudden assurances that help people guide through a sudden turmoil but these sudden restrictions are surely going to leave people in a pickle.unsecured-loans-can-be-easily-obtained-through-payday-lenders-direct-6516

The payday loan market is a big and widespread one. According to several reports, over 12,000,000 citizens of America opted for this way out during their times of need. The newest restrictions on these cash advances are sure to leave people in a financial liability in times of severe need. People without proper rainy-day savings or even a credit card won’t be able to easily appeal for these now that the restrictions have been tightened.

  • The most common people who seek out for these quick cash advances are either women or young citizens with an annual wage varying from $30,000-$35000. The quick cash was an easy and a quicker way out but several reports have now claimed that it is most likely that the women and the African-Americans are the ones who are going to suffer the wrath of these restrictions the most.
  • It is not just the borrowers who are going to be affected but even the payday loaners because it has been estimated that there will be a cut shortage of 3/4th of the total payday lending market. It is most likely possible for over 20,000 payday loaners might end up leading an unprofitable organization which is definitely a blow for them as well.

The only argument put forth by the CFPB is that people often “overuse” the advantages that the payday loan schemes bring them. They even expect these sudden restrictions on the regulations are more likely going to increase the free market interaction with the consumers and the sellers which are nothing but a far-fetched notion.

This sudden demarcation on the e payday loans seems to just affect a certain part of the area which is unjustifiable. If the aim of this is to bring about the changes as mentioned by the CFPB, then the effects of the same should be similar for every strata and race which definitely looks like a big question mark at the moment.

Obama Administration Accused by Payday Lenders of Last-ditch Effort with Operation Choke Point

The Obama administration is being accused by short-term lenders of attempting a last-minute effort to crack down on their industries by using Operation Choke Point. This has caused an emergency situation where businesses are not able to perform their basic functions, such as paying their employees.

Following a loss of more than dozens of banking relationships over the past few weeks, payday lenders asked for emergency relief from the program of the government from a federal judge in the District of Columbia. The program has been severely criticized for incorrectly targeting businesses that are legitimate.cfpb

CEO of Community Financial Services Association of America (CFSA), a trade association representing about nine thousand short-term lenders, Dennis Shaul, said that immediate relief is more important than ever. He believes that some members of the CFSA will be coerced to dramatically retrench their operations and others might have to shut down altogether without an injunction against Operation Choke Point.

The Justice Department designed Operation Choke Point in 2012 for attacking telemarketing, Internet, mail and other such mass market scam against the end-users by restraining swindlers’ access to the banking system.

The Justice Department believed that by partnering up with federal regulators including the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, they will be able to crack down on scams by utilizing federal regulators to pressurize the banks out of offering their services to businesses that are fraudulent.
However, critics of the program including several Republicans in Congress said that the program was being used to put financial pressure on legal industries that the Obama administration did not like, payday lenders and firearms sellers.
The Justice Department was contacted by the Daily Signal for an update, but they did not respond.

In April, a former official of President Barack Obama’s Justice Department said that the program has unintentional, but collateral consequences on the US consumers and banks. The complaints regarding the program damaging legal business owners have not stopped since then.

Operation Choke Point: A Shadow Campaign

A spokesperson for Advance America, the largest payday lending agency, Jamie Fulmer, said that the program is a shadow campaign against the businesses that abide by the law. To eliminate short-term lending, backdoor tactics are being utilized by regulators.

In a lawsuit filed in 2014 against the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Federal Reserve for their participation in the program, the CFSA and Advance American are co-plaintiffs.
The chief financial officer for Advance America, Christian Rudolph, said that at least twenty-one banks have sent the organization notifications for termination since 2013.

When requesting an emergency injunction against the program, he said that recently the terminations of the bank have reached a point where it has significant begun to restrain the ability of Advance America to carry out its business operations and it is on the verge of being refused to even hold a bank account.

Payday loans are typically small-dollar, 2-week loans that are meant to be given back when end-users receive their paycheck. Payday lenders usually charge a fee of $15 for every $100 borrowed.

Critics are worried that borrowers are going to struggling with repaying the loans leading to higher fees and eventually leaving the consumers in a cycle of debt. Supporters are of the opinion that industry offers a much-needed service to the Americans in financial bind or lack accessibility to the bank. They even argue that paying late fees on a credit card or the costs of bounced checks are much higher.

The case, Federal Deposit Insurance Corp. VS CFSA, is still going on and last year, the court granted it to move forward on the basis that the federal government might have breached the clause of the Fifth Amendment.

As per this clause, the lawyers for CFSA argued in court documents that the stigma established by the government against their industry under the program has been deprived of their right to having bank accounts and there selected business line. The negative effects of the program have been spoken out by the victims since the program was launched in 2013. A number of accounts have been documented by the Daily Signal.

But, the bank officials neither confirmed nor denied the theories of the federal regulators.

When a judge was asked for an emergency relief by CFSA and Advance America, however, the lawyers incorporated a written statement from the chairman of the Business Bank of Texas, Ed Lette.

Lette traced out how federal regulators from the Office of the Comptroller of the Currency coerced him to put a stop to a mutually advantageous relationship with a Texas-based payday lender, Power Finance Texas.

An expert in financial regulations at the Heritage Foundation and a critic of Obama’s program, Norbert Michel, said that it is very unusual for bankers to be discussing their problems publicly with their regulators.

The Office of the Comptroller of the Currency does not comment on any open litigation, but they did point to a testimony by Daniel Stipano, the agency’s deputy chief counsel, in 2014. Stipano had said that the agency does not direct banks to matters of individual accounts or even encourage banks to be engaged in termination of customer accounts. In case the bank is unable to manage the risks presented by a customer or the customer is related in any suspected illegal or criminal activity, the agency may direct the bank, via enforcement action to discontinue a customer’s account.

Stipano even confirmed that some of the requests that they had received during 2013 from the Justice Department were associated to Operation Choke Point.night-television-tv-theme-machines

The Program Reaches Beyond Payday Lenders

Payday lenders are not the only industry complaining about the program. The chief operating officer of Western Shamrock, a Texas-based installment loan corporation, Tom Hudgins, said that his industry also felt the pressure. Their sources of funding continue to be pressurized and their banking relationships at the local level continue to be discontinued. Hudgins operates three hundred locations in nineteen different states.

Installment loans are repaid over time and they have been around for much longer than payday loans. It differs from payday loans in the sense that they are fully underwritten and need strict verifications of the customers’ ability to repay the loan.
CEO of Banner Finance, an installment loan business with thirty-seven branch offices in 4 different states, Randy Dalton, said that there have been at least been 3 instances over 2 years where he had had to change banks because of terminations. He said that he has lost some bank relationships that his company had cherished for more than 50 years.

He said analyzing the current situation is of utmost importance and he is scared to think what will happen next.

A New Administration Brings Hope

Both installment and payday lenders agree that they have reasons to be hopeful, regardless of the uncertainties. Even though Donald Trump, the President-elect, has not made any comments on the Operation Choke Point, attempts have been made on multiple occasions by the Republicans in the Congress to terminate the program.

Sens. Ted Cruz, R-Texas, and Mike Lee, R-Utah, presented legislation aimed at deciphering Operation Choke Point, and the 2 are regular allies of Trump’s nominee for attorney general, Jeff Sessions.

The administration of Trump has not said much about the program, except that it is going to change very soon.

How to use free Wi-Fi for shopping, banking and safe browsing?

Isn’t it extremely convenient to update status, shop, post photos and bank online? You do not have to physically go to the store, the bank or even travel a certain distance to catch up with friends and family.

The only drawback of doing things online is that your information is travelling, via the Internet. If you thought that the information is only between you and the website that you are using, you are wrong. The data collected from you is actually bouncing through servers around the country or maybe around the world giving hackers the chance to steal your information. If they happen to get your data in transit, they might be able to gain knowledge about you that they should not know, your password or may even pretend to be you in order to trick your bank or such other security sites.

Hacking becomes especially easy when you are using public Wi-Fi. Hackers using the same network have a number of tools to know what you are doing. Not just hackers, even your internet service provider and government can also monitor your connection to find out where you are going and if they want, what you are doing.

Safety Tips for Women Going Out With FriendsThe measures of Internet security in place

Any shopping, finance or medical website that is even a little concerned about security is going to provide with a connection that is encrypted. The encryption helps to scramble your traffic so that hackers are not able to get a hold of your passwords or any other information.

How will you understand if a website is encrypted? If the web address in your browser starts with https://, it is an encrypted site.

Websites like, Google, Facebook and other such major sites have also adopted always-on encryption. However, every website is not going to provide you with any encryption or they might only provide you with partial encryption.

Partial encryption means that the site may not be encrypted until you log in or they only encrypt your login details and leave details, such as email messages exposed for hackers to snoop.

Lucky for you, a lot of sites are now moving towards full-time encryption.

However, you do not have to wait for sites to provide you with a level of security. You can encrypt your connection yourself. How? Read on…

Virtual Private Network (VPN)

You can use VPN to encrypt your connection. In the world of business, VPNs allows employees who work remotely create a connection with the network of the company so that they are able to safely work.

Macs and Windows have in-built VPN features. However, a thirty-party VPN service is best for travelers and average home-users. With this service, you will be able to create an encrypted connection with one the servers and you can use that server to browse the web. Even VPN will not be able to see your traffic.

To start with, you have to ensure that the VPN service has US-based servers. Also know the bandwidth that you can use and find out if they keep logs of your activity. Paid services are going to need you to provide personal, as well as, payment information.
cellphoneFor Android gadgets, PCs and Macs, CyberGhost is a preferred free option that offers unlimited bandwidth, strong encryption and does not store logs. If you want to go for a paid plan, there is an Apple app.
For Android and Apple gadgets, Hotspot Shield VPN with more than three hundred million downloads is a popular free application.

How to use VPN?

After installing VPN, fire it up and allow it to establish a safe connection. You can then continue browsing the Internet normally. The traffic is going to flow to your tablet, computer or any other device, via a VPN server and encrypted connection.
The encrypted websites is going to be safe from hackers and other prying eyes.

Please note that when you are searching for VPNs, you will come across two terms – proxy services and VPN services. Always choose VPN services because a proxy service will not encrypt the connection, only disguise the identity of your computer.
When you are using public Wi-Fi, it is strongly recommended that you use a VPN for your security. However, it is highly recommended that you save all your online banking activities for your cellular connection or home.

Have you used VPN services before? Please share your thoughts in the comments section below.

The Facts about Payday Loans the CFPB would rather you did not know about

We have officially reached a point where a good number of people are all too aware that the Consumer Financial Protection Bureau (CFPB) is on a mission to cripple – possibly even eliminate – the payday lending industry. The CFPB officially released its proposed regulations for this industry earlier this summer, and it seems that the Bureau and the payday lending industry are on a collision course. There are some things about payday lending that the CFPB would probably rather that you did not know about.

Are Payday Loans PredatoryIs the Glass Ceiling Sending Women to Payday Lenders

When you think of a predator, you probably think of a vicious, wild animal that hunts down defenseless creatures in the wild. This is a pretty brutal picture, right? It’s easy to understand why the CFPB continues to refer to payday lenders as being predatory. They want people to picture huge lending companies that are mercilessly making life difficult for the poorer people of this country. The truth, however, doesn’t seem to indicate that payday lenders are predators at all.

The CFPB has been collecting consumer complaints via an online database for several years now. Consumers are allowed to log complaints about every type of financial service/product from their local banks to debt collectors. They are also able to log complaints about payday lending companies. If payday lenders are really preying on people, you’d think that a lot of those people would be doing everything they could to make it stop. That means that we would expect to see tens of thousands of complaints about payday lending in the CFPB’s official database.

That’s not what we’ve seen, though. Payday loan complaints make up a miniscule amount of total complaints logged thus far. As a matter of fact, complaints about payday lending companies account for far less than 1 percent of the total complaints logged to date. But there are plenty of complaints in the database that people have taken the time to officially submit. Mortgage lenders, debt collectors and even credit card companies have managed to be the most complained-about topics so far.

One would have to assume that if the CFPB is receiving more complaints about mortgage loans, credit cards and other types of financial products/services that the Bureau would focus on doing what they can to introduce rules that those industries must adhere to; rules that would more effectively protect consumers. But what are they doing instead? They have focused a lot of time, energy and money on regulating an industry at the federal level that is already regulated quite effectively at the state-level.

What we have here is another case of an arm of the federal government sticking its nose where it doesn’t belong. If payday loans were such a huge problem – if payday lenders were predators – then people (to the tune of about 10 million to 12 million per year) would not be going back to these lenders, and they would certainly be logging complaints about being preyed upon.

Could it be that the larger lending companies can afford to do what they want because they have more money and maybe even help to prop up the political careers of certain elected officials? Maybe. Could it be that since the CFPB has been nothing more than a puppet for the Obama administration (and Obama has gone on record about his personal disdain for payday loans) that the group is simply using its power to toe the line, so to speak? People need money for emergency expenses. Payday lenders are often the only resource that lower income households can turn to. Complaints about the industry from real people are minimal. SO why the continued focus on an industry that supplies a legitimate service and that consumers are obviously not against? These are the kinds of questions that need to be brought to the table, and the CFPB must answer them if it hopes to maintain any semblance of being a legitimate protector of American consumers.

The CFPB is a top concern with Elections Right around the Corner

Any time we get close to a big election, financial issues are always a top priority for candidates and voters. A banking regulation issue that both Republicans and Democrats have a lot of concern about is that of the Consumer Financial Protection Bureau (CFPB.) As might be expected, neither side sees eye-to-eye on this topic.

Generally speaking, Republicans are in favor of less regulations on the banking industry. As such, this party believes that the CFPB is a rogue government agency. They have said that its work has done nothing but make trial lawyers rich while clogging up the system with troublesome investigations. Democrats, for their part, have stood behind the creation of the agency and have supported additional regulations on the banking industry. They say that the agency is dedicated to protecting the interests of American consumers.350737613_80_80 cfpb

As important as the issue is, it will likely become even more important over the next few months. As we get closer to the next elections, both parties will likely work hard to sway voters to take their side in the battle over which banking regulation approach is best for the United States. This battle is a lingering effect of the financial meltdown of 2008. Industry experts believe that the crisis never would have happened if the right kinds of checks and balances were in place back then, and that new legislation – including the creation of the CFPB – were intended to help prevent a similar financial crisis from happening in the future.

Financial analysts state that the Republican perspective on the CFPB fits in with the position that the U.S. Chamber of Commerce and bigger banks have taken. The U.S. Chamber of Commerce looked at 251 CFPB-studied cases. It turns out that lawyers averaged about $1.35 million per case on these sample cases. Banks have also gone on record about being concerned with complaints that are difficult to justify. A statement from Frank Keating of the American Bankers Association said, “While the banking industry is committed to helping consumers make informed and responsible financial decisions, public disclosure of unverified consumer complaint narratives doesn’t advance that goal and raises significant consumer privacy issues.”

Supporters of the CFPB, however, see things a bit differently. They believe that the things the CFPB has been doing have been important aspects of the overall banking regulatory foundation. At the DNC, Elizabeth Warren said, “Five years later, that consumer agency has returned $11 billion to families who were cheated. And Republicans? Republicans, they’re still trying to kill it.” Warren, of course, has a vested interest in the success of the CFPB. After all, she was one of the chief architects of this agency, and has been one of the CFPB’s most vocal supporters over the years.

Recently, the CFPB took action against one of the country’s leading banks. This action came after the bank allegedly did not comply with Dodd-Frank Wall Street Reform and Consumer Protection Act regulations. The CFPB said that the bank charged illegal fees on educational loans and that it did not give payment information to borrowers that they are legally required to provide.

We won’t see either side back down when it comes to the ideological battle over the CFPB. Voters need to learn as much as they can about the Bureau and the various issues it has been involved with over the years. They then need to support what they believe to be right by casting votes to support any measures that are directly related to the future of the CFPB. It may prove to be a battle that goes on for some time, but voters need to understand the issue and then vote accordingly to effect positive change.

Revamped Payday Loan Regulations under review

As the 2016 summer weather has continued to heat up so, too, has the drama surrounding payday loans, car title loans and other types of alternative financial services. From the most popular news websites to popular talk shows, payday loans are being discussed quite a bit. Why so much attention right now? Because in June the Consumer Financial Protection Bureau (CFPB) officially published its proposed rule to regulate payday loans, title loans and other types of alternative loans. The CFPB has even asked the public for feedback on the proposed rule.Banks Being Scrutinized By Regulators for Payday-Like Loans

Financial experts have even been tasked with looking the rule over and letting the public know what they think about it. Though payday loans have been a hot topic, financial experts have repeatedly stressed that the general public still lacks a fundamental understanding of payday loans, and the alternative financial services industry in general. Being as most media pieces on payday lending rules seem to be centered on the CFPB, it is easy to understand why some people tune out when they hear this topic being addressed. Understanding the new rule, what the CFPB is trying to do and how the payday lending industry could be affected by the rule are all things that American consumers should pay closer attention to.

The CFPB is officially recognized as an ‘administrative agency. What the heck does that mean? Essentially, an administrative agency is a lawmaking organization that specializes in a particular area. For example, the Environmental Protection Agency is one such agency that makes laws related to the environment, and the IRS (boo!) is the best known administrative agency related to revenue processing. The CFPB is a relatively new administrative agency. It was created as part of Dodd-Frank back in 2010. The Bureau was given the power to make laws related to consumer financial issues. It does this by creating rules. Once those rules get finalized they become federal law. The public is being given the opportunity to review the rules the CFPB creates, and we can also comment on any proposed rules. The official name of the newest rule is the “Payday, Vehicle Title and Certain High Cost Installment Loans” rule. It proposes to implement new consumer “protections” that the CFPB states will prevent consumers from getting into long term cycles of debt.

It is important for people to check out the rule and provide feedback. This is especially true for people who operate payday lending locations, work at them or enjoy having the ability to take out the types of loans that they want to. The proposed rule is currently available to look at on the CFPB’s website. Be warned, though, like other laws and federal rules, the new rule is very wordy and reading all of it could take a good chunk of time. Don’t let that dissuade you from at least giving it a look and deciding for yourself what you think about the proposed rule.

Going online for most folks may be more about checking out news sites and social media sites, but that doesn’t mean that you shouldn’t take a bit of time out of your day to check out important stuff, like this proposed new rule. A lot of opponents of the CFPB have accused the agency of running roughshod as of late. Looking at the new rule and then finding out what opponents of the rule believe will help you to be better informed about this important topic. Just because an administrative agency has the power to do something that does not necessarily mean that it should. Take a look for yourself and let the CFPB know what you think.

Proposals Could Help Cable Subscribers to save a lot of money

There is no doubt about how drastically things have changed with regards to watching TV shows, sports or even movies. From Netflix to Sling TV, there are now so many streaming services available that some people are foregoing subscribing to cable altogether. There are, however, still millions of people who still pay for packages from the top cable providers. Even lots of folks who have started using more streaming services still rely on their preferred cable provider for some of their television content.night-television-tv-theme-machines

Paying for content is one thing – and you do that whether you get cable, satellite TV or streaming services. However, the cable companies don’t only charge you for the content you watch; they also charge their customers for the equipment that is used to deliver said content. This equipment usually comes in the form of a cable set-top box. Subscribers actually rent these devices, and pay an average yearly cost of about $231. All of those “rental fees” add up to about $20 billion each year for the big cable companies.

This may all change, though, as the FCC is looking at a couple of proposals to eliminate the cable set-top boxes that so many fork out money to pay for. The news of these new proposals should be music to the ears of cable subscribers. However, the cable companies are not keen on potentially losing billions of dollars in box rental fees, so there will be a bit of a battle over these proposals.

The two proposals that the FCC is looking into would both replace traditional cable boxes, but the proposed plans vary considerably. In January, the FCC Chairman proposed that subscribers should be able to scrap the set-top box in favor of a more affordable device created by third party companies. These devices would do the same thing as the cable boxes, but would also allow people to pick up their streaming content services.

As you might have guessed, the cable companies are not exactly falling all over themselves to see this proposal through. They blame the proposal on the huge tech company, Google. Since it is well known that Google is expanding into the cable/broadband Internet market, the cable companies believe that Google would wind up being one of the third-party companies that offers their new device to people. Other companies that may also develop these devices include Apple and Amazon. Comcast, Dish, Time Warner and other cable providers have banded together to start a new lobbying group called the Future of TV Coalition. By way of this group, along with Hollywood studios, the cable industry is in full-on attack mode against the new proposals. The United States Copyright Office has so far agreed with the big cable companies and the original proposal may be losing steam, while the other proposal – which would replace the old cable boxes with proprietary apps – is beginning to gain more ground.

TV Content Delivery Industry is Evolving

Regardless of which proposal winds up being the favored proposal, the fact of the matter is that things are about to change for both cable subscribers and providers. While it is understandable that the cable companies would be upset about the potential loss of so much rental revenue, TV content delivery is a market that is on the cusp of even bigger changes in the future. And if consumers stand a chance at saving over $200 a year because of potential upcoming changes, you can bet that most people will be more than glad to get rid of those cable boxes that they have been forced to pay rental fees on for so many years.

Are Payday Loans really the Debt Traps they are made out to be?

When you’re poor you don’t have the same kind of options that other folks have when it comes to borrowing money. As a matter of fact, there really aren’t many lending options that are currently available to lower income Americans. One type of lending that has been helpful to poorer people over the years may soon wind up going away forever. The Consumer Financial Protection Bureau (CFPB) has created new rules that may prevent poor people from getting access to short term lines of credit. And these rules were created because the CFPB says it wants to get rid of “debt traps” that are caused by the payday lending industry.

About Payday LoansBanks Being Scrutinized By Regulators for Payday-Like Loans

The payday lending industry really started to take off in the 90s. Most folks have seen the small storefront locations that these lenders use as their base of operations. The lenders provide small dollar loans (usually for just a few hundred dollars) to their customers. The customer pays back the loan in a week or two and is charged a flat rate fee that must be paid back in addition to the money borrowed. It is typical for payday lenders to charge about $15 for every $100 a person borrows. So, if someone takes out a $200 payday loan, they must pay the lender $230 after the two week loan term is up. Pretty easy to understand, right?

The CFPB doesn’t think that process is very simple or easy to understand. In fact, they seem to believe that American consumers are so dumb that they couldn’t possibly understand and abide by those types of loan terms. That is why they have amped up their efforts to effectively eliminate the payday lending industry. They are looking to implement their proposed rules on a federal basis, so all the states have to fall in line with how the CFPB wants to regulate this industry.

One problem is, however, that individual states have already been doing a pretty good job of regulating the payday lending industry without eliminating the industry altogether. This doesn’t appear to be enough for the CFPB, though, as they have been pushing very hard to get their new rules implemented as soon as possible.

The New Rules

The CFPB wants to make lenders assess whether or not a borrower can pay back loans prior to the loan being made. They also want to make it more difficult for people to roll over old loans into new ones. If these rules become the law of the land, they will certainly shake up the payday lending industry. But that might not be a good thing after all.

We have to use critical thinking here to figure out why people take out payday loans. They do so because they need access to fast cash. Many of these people have low credit scores and/or very little access to traditional banking services. These folks have the same types of emergency expenses that everyone runs into from time to time. But without a lot of cash on hand or the ability to borrow from banks/credit card companies, they instead turn to payday lenders. The bottom line – people take out payday loans because they need to. They have no other avenues to pursue when they need emergency money. If the CFPB’s new rules drive thousands of lenders out of business we could potentially see millions of American households left with no option available to them at all when they need to take care of emergency expenses.

This is just another example of people/organizations saying they have someone’s best interest at heart, but really doing nothing more than making life more difficult for that person. Without payday lenders to turn to when hard financial times hit, poor people may wind up with nowhere else to turn than illegal (loan shark) lenders. That certainly isn’t the kind of outcome that anyone wants to see take place.

Federal Reserve Study on Online Lending is not Legit

They say that you can use studies and statistics to prove anything that you want; regardless of whether what you are trying to prove is even legitimate. Such is the case with a recent study that the Federal Reserve did with regards to consumer dissatisfaction with online lenders. According to this study only about 15 percent of small business borrowers reported being satisfied with online loans they were approved to get. Here’s the kicker – that statistic doesn’t even accurately reflect the data collected in this study. But people are now being hit with headlines about how much small business owners detest online lending. The thing is, though, that it’s just not true. And the study is pretty much bogus from all appearances.payday-online

The stat that we just mentioned is actually a representation of how many people were satisfied versus dissatisfied. You can check this out by looking at the study’s footnotes. So, the 15 percent is actually a net satisfaction metric that indicates more borrowers were satisfied with their experiences with online lenders than dissatisfied. If you do the math, this statistic actually shows that more than 50 of borrowers reported being satisfied. Banks did score higher than online lending companies in this report, but with as unscientific as this study was it is difficult to tell if that statistic is bogus or on the level.

An Unscientific Study by the Federal Reserve

The Federal Reserve puts a lot of interesting information in the footnotes and fine print of their study. If you cut through all of the confusing information, here is what it really says:

Businesses get contacted via email from organizations that serve the small business community in participating Federal Reserve Districts.

The data are not statistical representations of small businesses.

By its own admission, the authors at the Fed are very clearly stating that the data was not random – in other words the data is biased and not representative of real world statistics. The report even opens up by saying, “Our hope is that this report contributes to policymakers’ and service providers’ understanding of the business conditions, credit needs, and borrowing experiences of small business owners.”

We can now see that the metrics used in this study don’t mean anything in the real world. But they are still being cited continuously. A report that the US Treasury published a few months ago even makes a direct citation of the 15 percent satisfaction metric. It’s a standard case of bad information being created and published and then running amuck.

So what’s next? Now that this bogus study is being quoted and used all over the place, how do we get to the truth of the matter at hand? We are now at a point where critics and supporters of the online lending industry are even starting to buy into the bogus statistic about only 15 percent of small businesses being satisfied with online lending. This conclusion has never been reached by a legitimate study. No one is looking at the fine print from the Fed’s report. Hopefully, people within the industry will begin to look closer at these types of reports to see if what is being represented is truthful. When powerful agencies, like the Fed are able to get away with pushing what are essentially biased reports to the general public, it is easy to understand why so many people are up in arms about the online lending industry. If those folks would actually look at the facts, however, they’d find out that more small business owners are satisfied than dissatisfied with the online lending industry. It seems that is not the kind of true story, however, that the Fed wants the public to know about.