Financial Reform Does Not Affect Payday Lending

Posted On: July 28, 2010 at 9:07 a.m.

Filed Under: financial reform payday loan washington

As you may know, a financial reform bill was recently passed in Washington to help keep banks and other financial institutions on their toes and keep them from committing fraudulent and predatory practices. However, it did not specifically crack down on past problems committed by banks. It also did not directly attack payday loan lenders. “Over the course of the year, hundreds of protests were held across the country in dozens of towns — large and small — in front of bailed out banks, mortgage firms and small payday loan operations. Major rallies organized by grassroots organizations like National People’s Action and PICO as well as AFL-CIO, SEIU occurred in Chicago, San Francisco, New York and Washington, D.C. But no one is resting on their laurels. A statement from National People’s Action to its grassroots members said, “this legislation does many things to prevent a future crisis, but it does not make banks responsible for cleaning up the mess they created, and it doesn’t break up the big banks or outlaw payday lending. Congratulations on winning Round One and get ready: it’s time to win Round Two!” Arkush agrees. “This victory is a testament to the power of ordinary people in America. It’s a power we’ll need, because there is much more work to be done” (http://www.prwatch.org/node/9269). We will see where this goes in the future. It appears, though, that for the time being, payday loan lenders are safe from severe federal overhauls.