Picture of a cardboard box labeled "unemployment office."
Many more people may join the unemployment line if payday lenders close their doors. CC clementine gallot/Flickr

PR Web recently published a press release that highlighted a payday loan employee survey conducted by the industry website AboutPaydayLoans.com. According to those who participated in the industry survey, the underlying belief is that the formation of the Consumer Financial Protection Bureau will place a federal stranglehold on the operation of cash advance and online payday loan companies across the nation, making it too difficult for many lenders to continue to operate and still be able to pay their employees.

Payday loan employees see dark future

Employees were not optimistic about what the Financial Reform Bill may do to payday loan companies and employees, according to the AboutPaydayLoan.com survey. “If CFPB ends up putting a crazy cap on payday loans, then we will be out of jobs,” wrote one payday loan worker in response to the poll. A potential rate cap of 36 percent APR is rumored for online payday loan outlets and storefront locations. That low figure would cripple those payday loan entities who do not diversify their business models. Needless to say, this is what payday loan employees fear.

Cash advance regulation: already staggering

What many have argued – that local and state payday loan laws are more than enough – appears to have been lost on the federal government. The CFPB and the potential regulation would hamper payday loan business. One payday loan employee comment on this matter on the industry blog Payday Loan Blog:

“I am getting so flustered with all of this. Every day I wait on news that will shut us down or news that they will leave us alone. I feel as if many of us are on pins and needles wondering if soon we will be in the unemployment lines. Job security is gone, and a lot of the zest that I once had is fizzling out. I am not alone in this. There is uncertainty in the air. … I sure wish at least we knew what and when these changes would occur.”


AboutPaydayLoan: http://www.aboutpaydayloan.com/

Payday Loan Blog: http://paydayloan-blog.com/

PR Web: http://www.prweb.com/releases/2010/08/prweb4344874.htm

Post By bryanh (1,420 Posts)


Do you have a fantastic idea related to this article, but just don't have the money you need to start your own company or side-business? Get the loans you need from https://personalmoneynetwork.com to help get your new company underway, from the small loan professionals at PersonalMoneyNetwork.

PG&E to pay $70 million for pipeline tragedy

PG&E to pay $70 million for pipeline tragedy

Pacific Gas and Electric Co., a northern California utility, has agreed to pay $70 million to the California town of San Bruno for a pipeline explosion that killed eight people in 2010. Company says it’s remorseful The San Francisco-based power company’s president, Chris Johns, released a statement Monday, saying PG&E is sorry and eager to […]

Judge stabbed and deputy shot in Washington courthouse

Grays Harbor County Courthouse

Following a standoff in a Washington state county courtroom Friday, a man reportedly escaped after shooting a sheriff’s deputy in the shoulder and stabbing a judge in the neck. The man is still at large. Treachery among the tree farms The incident occurred Friday afternoon in the western Washington town of Montesano, which bills itself […]

Microraptor was one flashy little dinosaur

Microraptor fossil

A team of Chinese and American scientists have found that Microraptor, a small four winged dinosaur that went extinct about 130 million years ago, was likely black and almost certainly had glossy, iridescent feathers. Until now, the coloring of extinct creatures was a matter of pure speculation. That may no longer be the case. The […]

Autocorrected message leads to school lockdown

Homage to the Sun

Adjacent schools in Georgia were locked down for two hours Wednesday after a text message reportedly warned of a “gunman” on campus. Later, it was learned that the message was the result of a smartphone autocorrect function, attempting to “fix” the misspelled slang word “gunna.” A series of mixups A series of mixups led to […]