A former Florida lawmaker who was instrumental in helping the Sunshine State pass one of toughest laws protecting consumers from predatory lending is warning that the federal proposal is too heavy-handed, strips states of their rights and deprives consumers of emergency lending options as the Consumer Financial Protection Bureau embarks on a rule-making process that payday lenders estimate will put 70 percent of their industry out of business.
вЂњPeople need usage of small-dollar loans we found it was important to allow them to have that access,вЂќ Kendrick Meek, a former Democratic congressman from Miami, told The Washington Times if they donвЂ™t have credit, let alone good credit, and. вЂњOur payday financing legislation in Florida was effective since it keeps use of small-dollar loans as well as protects the residents of Florida.
вЂњA federal guideline preempting the Florida legislation will be a mistake that is big. If you see a law this is certainly being effective, and preventing customers from getting on their own into economic difficulty, if you have a thing that happens to be proven and it is working, it might be a huge blunder to ignore that,вЂќ he said.
Yet the CFPB appears intent on performing this.
In April, the whole Florida delegation inside the U.S. House of Representatives composed a page urging CFPB Director Richard Cordray to utilize FloridaвЂ™s lending that is payday being a model for nationwide regulation. Continue reading