Payday Loan Employees See Dark Clouds Ahead

President Obama has signed the Financial Reform Bill, and according to a survey by AboutPaydayLoan.com, payday loan employees are worried for their jobs, writes PR Web. As outlined by those who participated within the industry survey, the underlying belief is the formation of the Consumer Financial Protection Bureau (CFPB) will place a federal stranglehold on the operation of cash advance and online payday advance businesses across the nation, making it too difficult for many lenders to continue to operate and nevertheless be able to pay their employees.

Payday loan employees give voice to their fear

According to one payday advance employee who responded to AboutPaydayLoan.com’s survey, the ripple effect of the Financial Reform Bill has numerous like him searching for higher ground before the storm. “If CFPB ends up putting a crazy cap on pay day loans, then we could 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 also the more visible storefront locations. That low figure would cripple those payday advance entities who do not diversify under other practicable business models. These lenders would discover it impossible to meet expenditures such as payday loan employee salaries, let alone turn a profit.

Money advance regulation: already staggering

Many have argued the combination of local and state regulations on the payday loan industry have been enough to safeguard consumers and enable businesses to continue to function. The regulations the CFPB would likely put in place would strangle the payday loan industry to death, say employees of lenders. One cash advance employee comment on this matter on the industry blog Payday loans Blog:

“I am getting so flustered with all of this. Every day single 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.”

Further reading

AboutPaydayLoan.com

aboutpaydayloan.com/

Payday Loan Blog

paydayloan-blog.com/

PR Web

prweb.com/releases/2010/08/prweb4344874.htm