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.”

Citations:

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

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

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

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