Have you ever wondered what is the value of financial security? Can an amount be actually added to an abstract factor like financial security? In this day and age of people literally loaning themselves money to survive, desperate people, taking cash advance in order to be able to pay bills, financial security does seem worth an awful lot. If you are head of an organization, you might be wondering exactly how much your fiscally protected workers’ worth is to your organization’s bottom line? Is their financial security a factor that improves productivity as much as it improves their life? This abstract question may soon enough have an answer and organizations will be enabled to solve it.

Financial Finesse is an organization dedicated to improving workplace wellness. They are always on the lookout for creating methods that can tackle such abstract concepts, asking questions like, ‘is it worth it’ in order to truly value the importance of certain workplace practices. Their team of analysts and developers said that it has come up a new prognostic return on investment model, a scientific approach that accurately gives descriptions of exactly how much a worker’s economic state is possible to effect both in a good or bad way, their company’s bottom line in important zones such as nonattendance or absenteeism along with other important factors. Absenteeism is absolutely condemned in any organization and it was important to incorporate that factor in. Another crucial factor is salary garnishments – in the event of an employee falling under heavy debt, the court may place an order which forces the borrower’s organization to pay the lender his or her salary for the month. Since this is a court order, the organization is forced to comply without considering factors like the employee’s performance that month or whether or not he or she deserves to be fired for bringing on such problems for the organization. Another chief area Financial Finesse focuses on is the factor of benefits involvement.

That might come tremendously handy as an economic pressure in the office rises, it has a severe effect on an employee’s psychological and bodily comfort. Such stress can also cause major defects to the standard of work they can produce at work. Employers speculating the amount of money it could be costing their businesses, finally have a way of figuring it out.

The Financial Wellness Score has attempted to make this abstract calculation possible for companies to set a standard and calculate the return on investment related to refining workers’ levels of economic well-being. A state of wellness where a worker has minimal or no economic pressure along with savings funds to squash any unforeseen costs and a carefully designed strategy in place to achieve any targets in the future.

The return on investment model delivers businesses of variable scopes a procedure to set program standards, being able to determine the amount of savings that can be made through effective cutting down of costs, rank target worker populations and keep a record of development and actions over a period of time, in order for human resources and welfares teams to set quantifiable program targets and quantify the influence their financial well-being agendas have on the business’s bottom line.

The detailed study and analysis discovered that workers in the anguish and stressed groups affect their companies’ bottom line at an excessively high rate, be in the region of a yearly charge to the company of $198 and $94 for each worker, respectively. Workers with advanced economic well-being levels cost the organization less. In these desperate times where attaining services like cash advance has become many people’s last resort, it is important for organizations to act wisely.

The passing of Dodd-Frank Act under the Obama government came as a blow to banking and financial services industry, especially to e-payday loans online in 2010 after the recession. Because of which the compliance burdens were created which made it difficult for the U.S. companies to compete with the foreign counterparts.

The banking and financial services are all set to benefit from the Trump rule. Finally, there is someone from the business side to look at the financial soundness and implications of the decisions on the business world. The unbelievable victory of Trump over Clinton has resulted in the key branches such as legislative and executive under the Republicans. Democrats and Ex-President Obama were not in favor of few regulations which will now be controlled by Republicans.

As is already known that Trump has been relatively quiet on his plans for banking policy, but he has already mentioned he wants Dodd-Frank act should be dismantled. Also, not only the act but much of the financial regulatory structure could be turned upside down, says Justin Schardin, the director of Bipartisan Policy center. Additionally, a lot of that decision also rests on who would be nominated for vacant positions of Federal Reserve, the Federal Deposit Insurance Corporation (FDIC) and Treasury Department.

What is financial regulation plan of Republicans?

Republicans already have a blueprint of the financial policy they would want to follow regardless of the Trump nominees. The mentioned blueprint is Financial Choice Act which seeks to undo many major provisions of Dodd-Frank.

The Director of financial regulation studies at Cato Institute, Mark Calabria is certain that Financial Choice Act will come back in next congress. This act was introduced by Representative Jeb Hensarling, who leads House Financial Services Committee. Calabria says that the bill is as is very comprehensive but some points; including community banking relief could likely pass.

A longtime industry representative who asked not to be named feels that the Financial Choice Act would yield significant benefits for banking. Also, he thinks that the largest financial institutions would get relief with the provisions to repeal the Durbin amendment and Volcker rule.

The Consumer Financial Protection Bureau (CFPB) funding and structure is likely to be reformed by Hensarling bill. CFPB is frequently lambasted by Republicans to make it less powerful.

Are these the best odds for community banking relief?

Well, Under the Trump leadership community and regional banks have the best odds of regulatory relief. Some prominent banking position holders think so. According to Paul Merski, the executive vice president at Independent Community Bankers of America, having the same party in control of congress as well as White House predicts that community banking relief will get passed. Also, he thinks that there is a better scenario for legislation to move through entire congress and get signed by president into the law.

The similar sentiment is echoed by Senator Mike Crapo heading the powerful Senate Banking Committee. As he hails from Idaho, a state far away from Wall Street, he is widely expected to back the legislation that would benefit smaller institutions.

Additionally, few Democrats including Senator Sherrod Brown from Ohio who is the ranking member on the Senate Banking Committee have embraced the idea of providing regulatory relief for community banks.

All in all future of the banking sector as well as financial services industry seems brighter. It will help the e-payday loans online to compete with their foreign players fairly without the legislative burdens the current financial policy imposes on them.

There are always groups that want to get rid of things that other people find beneficial or even enjoyable. Back in the days of prohibition, it was the Temperance Movement that fought long and hard to keep people from enjoying an adult beverage from time to time; because they thought they knew what was best for everyone. A couple of decades ago, Al Gore’s wife and a handful of other Washington Wives decided to take the fun out of rock ‘n roll, and tried their hardest to get this form of music regulated or even banned.consumer-financial-protection-bureau-logo
Today we have the Consumer Financial Protection Bureau (CFPB) and other proponents of the Nanny-State, who think they know what is best for lower income, unbanked and other people in this country. They are diligently pushing forward to introduce regulations that would force payday lenders and other providers of short-term, small-dollar loans to jump through hoops and bow down to the federal government in order to stay in business.
On the one side, you have people who love meddling about in other peoples’ business, and on the other you have the people who make a living from this industry, and who champion the idea of a truly free market. Many proponents of the CFPB are predicting nothing short of total annihilation for the payday lending industry. They believe that the regulation that the CFPB recently unveiled will spell the end for short term consumer lending as we know it.
What if they’re right? What would a world without payday loans – or at least a country where they are effectively over-regulated into nothingness – really look like?
Sure, some might be glad to see the local cash advance locations close up shop. They might think the neon signs and advertising is out of hand. They might be glad to see online payday lenders forced to take their advertisements off the Internet. Of course, these are the same folks who will find some other industry to attack next, so there’s that to consider.payday-loans-61
If payday loans are over-regulated to the point of extinction, here’s what will happen:
Thousands of people will lose their jobs/livelihoods. There are real, living, breathing human beings that rely on their paychecks from payday lending companies to keep their families fed and to keep a roof over their heads. If the CFPB and their cronies have their way, these folks will be forced out of their jobs and left pounding the pavement to find a new source of income and benefits.
Poor people, underbanked and unbanked folks will have to go without when they need emergency cash for unexpected expenses. There are literally millions of people who have bad credit, lower incomes and no ability to get loans or lines of credit from other institutions. How will these people – some of the most severely financially at-risk households – get money to fix their cars, pay for their kids’ dental work or even buy groceries to tide them over between paydays?
The federal government will have proven that they can step in and override the sovereignty of state laws in one, fell swoop. There are already laws on the books in various states that govern the payday lending industry; some quite successfully. If the CFPB is able to hand out a mandate from on high, the laws and policies that states have worked hard on – and spent hard-earned tax money on – will be thrown by the wayside. This is something that citizens of every state need to consider very seriously.
So, some folks may be just happy as clams to see an industry that they don’t care for eliminated, there are some very serious repercussions that must be considered prior to allowing the new payday lending rules form the CFPB become a federal law.

Proposed Payday Lending Restrictions will likely cause harm to Lower Income Households
If you read articles written by most mainstream writers or listen to election speeches from “progressive” candidates, you’ll probably find out that most of these folks detest payday loans. You’ll hear a lot about “cycles of debt”, “high interest rates” and lenders that are “predatory.” As it usually turns out with these sorts of things, most of the information you get is nothing short of hyperbole or click-bait. And here’s what some of these so-called “experts” and “consumer advocates” are not telling you: The latest batch of proposed payday lending regulations will probably cause a lot of grief for lower income households.
The bandwagon against payday loans has reached such a boiling point that Google has removed all ads for payday loans from its popular online ad network. This is the same Google that has no qualms about running ads for any number of scams, including tons of weight loss “miracle” systems that usually turn out to be nothing but snake oil in disguise. But the search engine/advertising giant has decided to toe the line when it comes to payday loans, by flat out banning ads for these popular types of loans.
With all of this going on, it should come as no surprise that the Consumer Financial Protection Bureau has finally come forward with the new regulations on the payday loan industry that they have been threatening for the better part of the last year. All of the groups, individuals and institutions that are opposed to short term loans have been overjoyed about the new rules. But a huge group of people (according to some studies, more than 12 million American households) are not going to be doing any celebrating if these proposed regulations wind up becoming federal law.
While the CFPB is not actually banning payday loans, the main idea behind the crafting of the new rules is to force lenders to make sure that all borrowers are able to pay back their loans on time. So, what’s wrong with that? Well, even though some people may not like payday loans that does not mean that these loans do not help people. As we said, nearly 12 million people rely on these loans during any given time of the year, and that number may actually be increasing.
It is easy to believe that the majority of payday loan customers are people who have no access to mainstream credit. However, as more people find that their pay schedules at work don’t exactly jibe with their financial needs, more people may require payday loans to help them get through in between pay periods at work. In fact, some big financial investors are investigating ways to offer payday loan-like products and services to everyone who is gainfully employed. Even Uber is getting in on the game, by announcing company plans to allow their drivers to get payday advances of as much as $1,000. And other new offerings may soon be coming that allow employees to get payday advances through cooperative efforts with their employers and new lending methodologies.
Here’s what it comes down to: For all of the “progress” that the CFPB is offering, they may be a day late and a dollar short. Just like other government initiatives in the past, this crackdown on payday lending may be another case of the federal government attempting to introduce regulations to an industry that is already on the cusp of great changes. And to make matters worse, the regulations will probably limit access to lines of credit to lower income people, right when those same loans begin to become more accessible to just about everyone else.
Make no mistake – the regulations will cause people to go without. The CFPB says that by increasing lenders’ costs, they would reduce the total dollar volume of payday loans by more than half. So where will all the money that would have normally gone to borrowers go? Could be that those dollars will wind up in the wallets of borrowers who lenders are able to identify as being less of a risk. Kind of sounds like a case study of poor/lower income households being marginalized and punished, doesn’t it?

It has been about five years since the Consumer Financial Protection Bureau (CFPB) officially began. From its lackluster early years to its recent promises to “reform” the financial industry, this organization has not been a stranger to controversy. The group is looking to ramp up its efforts to implement changes to the financial industry even more in the future.consumer-financial-protection-bureau-logo

According to the Director of the CFPB Richard Cordray, “By pursuing the goals of evenhanded oversight, appropriate law enforcement, fair rules, expert research, and broad-based consumer education and engagement, we have been working to restore trust and confidence in the markets for household financial products and services. As we do that more and more, we can see that we are succeeding in delivering tangible value for consumers.”

Cordray promises that the CFPB will use these objectives to form a foundation for the future, and has set up nine steps the bureau will stick with in order to do so. Cordray went on to explain, “They are statements we are making about particular outcomes in particular markets that we want to drive toward fulfilling, rather than descriptions of what tools we plan to use. So strategy starts with what we want to see in the marketplace, which then can guide us in selecting the tools most appropriate for the task.”

Here is an overview of the nine steps the CFPB plans on using:

Commenting on the big picture created by these nine steps Cordray said, “As we look ahead and work toward the primary goals we have set for ourselves, I believe these are also important characteristics of our work together at the Consumer Bureau.”

On paper, all of these steps sound reasonable, and even positive. However, it remains to be seen if Cordray and his staff can pull these things off without placing undue scrutiny and penalties on some service providers. Can this organization effectively “overhaul” the financial industry without forcing some financial service providers out of business, and creating financial vacuums in the marketplace that would effectively leave consumers with fewer choices on how to handle their money? The answers to these questions will become more apparent as this organization continues to do what it does. As this happens, though, we all have to wonder whether or not the CFPB has consumers and providers best interests at heart or if it is using its nine step plan to further its own agenda and that of the current presidential administration.

CarHop has been known as one of the country’s most popular auto dealers that allows buyers to “buy-here-pay-here.” The company has been in business for years, and has sold thousands of cars to people during that time. It comes as a bit of a surprise, then, to learn that the Consumer Financial Protection Bureau (CFPB) has announced that they are taking legal action against CarHop. According to the CFPB, CarHop and its in-house financing company, Universal Acceptance Corporation, are guilty of failing to provide positive and accurate credit information to consumers.auto750

Allegedly, CarHop and their financing company promised consumers that it would provide the positive, accurate credit information to the major credit reporting companies. The investigation by the CFPB has revealed that inaccurate credit information was provide on more than 84,000 accounts, and that the inaccurate reporting was a systematic issue within the companies. The Consumer Financial Protection Bureau has officially ordered the companies to stop the illegal activity and to pay a civil penalty of $6,465,000.

The Director of the CFPB is named Richard Cordray. He has been somewhat of a lightning rod of controversy in recent years. However, he has never backed down from going on record with what he thinks about these types of financial misdeeds. When asked about the actions against CarHop, Cordray said, “Many consumers went to CarHop because they needed transportation and wanted to build up a good record of paying their bills. But CarHop and Universal Acceptance Corporation thwarted those expectations by inaccurately furnishing negative credit information. The CFPB will not stand for companies whose sloppy actions jeopardize consumers’ credit.”

CarHop is based in Minnesota and also goes by the name of Interstate Auto Group. This dealer is amongst the largest buy-here-pay-here auto dealers in the United States. These types of auto dealers not only sell cars, but they originate and service the car loans as well. There are over 50 CarHop locations spread across 15 different states. The majority of CarHop’s customers are folks with poor credit scores or virtually no credit histories. These types of consumers regularly rely on subprime or deep subprime lines of credit. These types of loans are often marketed as easy ways for consumers to rebuild/build their credit scores. CarHop apparently promised that it would provide all positive payment histories to the major credit reporting agencies. Many of the customers who regularly purchase vehicles from CarHop do so due to the fact that they have severe financial obstacles to deal with or bad credit scores.

The Universal Acceptance Corporation operates on behalf of this popular auto dealer. This company provides consumer account information to the big credit reporting agencies every month. The Consumer Financial Protection Bureau, during their investigation, discovered that the company reported information that was obviously false. It is believed that the company provided inaccurate information to the credit agencies for over 84,000 consumer accounts. This apparently went on between January of 2009 and September of 2013.

Reporting inaccurate information to credit reporting companies can cause harm to consumer credit scores. Bad information could cause credit scores to drop and may even prevent consumers from obtaining good lines of credit, or favorable job positions. As such, it is easy to understand why such a large line was leveled by the CFPB. The public will have to stay tuned to find out whether or not CarHop is going to stay in business and whether or not their daily operations, policies and procedures will change due to the actions taken by the CFPB.

Man-standing-at-lighted-door-within-green-matrix-postAlabama recently put a new database into action that helps the state to track payday lending. According to this database, over 462,000 payday loans, for a total of $146 million were processed over a ten week period. The group that tracks this activity, the Alabama Banking Department, started tracking payday loans back in August, after being victorious in a court battle to create the database to help enforce existing regulations that put a $500 cap on payday loans for consumers at any given time. The numbers collected so far help to provide an inside look at how much money consumers borrow from payday lending companies in the state of Alabama.

One “consumer advocate” who has petitioned for more regulations on payday lenders, Shay Farley, said, “Anyone, who looks at these numbers, I challenge them not to have their eyes opened because it is shocking,” with regards to the information from the state database. Those who are critical of payday lenders say that the state should take additional actions to provide additional protection for borrowers from what they describe as a “debt trap.” Representatives of the payday lending industry, however, say that the numbers provided are proof positive that the payday lending industry is already on a decline because of the increased regulations that have already been put into place.

When consumers take out a payday loan, they pay a flat fee – usually around $15 for every $100 that they borrow – and then pay the loan principal plus the fees back in about 10 to 14 days. Those who are critical of the payday lending industry have argued the borrowers wind up trapped in debt because they take out multiple loans to pay off their initial payday loans. According to Farley, the people of Alabama are well “ahead of the curve” with regards to payday loan usage.

The state of South Carolina, which has a population similar to that of Alabama, along with similar loan limitations, processed about one million payday loans the entire fiscal year of 2014. The state of Washington, processed just over 871,000 payday loans the same year. Farley went on to describe her opinion about these differences, saying, “In other states that have moved for reforms, there has been no rioting in the streets to bring back payday loans.” Again, however, payday lending industry insiders have countered that statement by saying that the numbers prove that people desperately need the financial services that payday lending companies offer, and that the industry itself is taking serious hits because of the new regulation.

Max Wood is the owners of several Cash Spot stores in Alabama cities. Wood says that figures he has been privy to show that about 300,000 people take out payday loans in Alabama. According to Wood, “There is no other choice for those 300,000 people for all practical purposes. Wood went on to argue that Alabama was not out of line with regards to citizens’ usage of payday loans, and that the numbers revealed by the database were not surprising in the least to those who really understand the industry. It looks like the public fights about payday lending in Alabama are not going to slow down any time in the near future. However, those consumer advocate groups need to realize just how much lower income people depend on these loans in the great state of Alabama, and that new regulations need to balance compassion with common sense in order to be truly effective for all parties involved.

The Consumer Financial Protection Bureau (CFPB) has taken new steps to introduce stiff legislation on smaller dollar lending companies, better known as payday lenders. Just recently, the government watchdog group made an announcement that they were proposing new rules that lenders would have to follow. These rules revolve around borrowers having the ability to pay back any loans that they take out, and the lenders would have to be the ones to make sure consumers are able to make timely payments. The CFPB also proposed a new rule that would that would limit the collections actions lenders can use for any fees that are “in the excess.”

“Today we are taking an important step toward ending the debt traps that plague millions of consumers across the country,” said the director of the CFPB, Richard Cordray. “Too many short-term and longer-term loans are made based on a lender’s ability to collect and not on a borrower’s ability to repay. The proposals we are considering would require lenders to take steps to make sure consumers can pay back their loans. These common sense protections are aimed at ensuring that consumers have access to credit that helps, not harms them.”

This announcement has caused a bit of a tongue wagging in recent days, though some folks seem to be reacting positively to the proposals. The editors at the New York Times ran a story with the headline of: “Progress on Payday Lending” as a way to chime in on the proposal from the CFPB. The Washington Post also chimed in, with an article that said, “Payday lending is ripe for rules.”

“If you lend out money, you have to first make sure that the borrower can afford to pay it back,” said President Obama with regards to the new rules. “We don’t mind seeing folks make a profit. But if you’re making that profit by trapping hard-working Americans into a vicious cycle of debt, then you got to find a new business model, you need to find a new way of doing business.”consumer-financial-protection-bureau-logo

Nobody wants to see Americans caught in these supposed ‘debt traps’ however, the rhetoric that supporters of the CFPB’s proposals use is obviously crafted to get people behind these new rules. It really comes down to certain folks in the government and in watchdog organizations that have decided to wage what they believe to be a righteous war against payday lenders. Being as most people, even the highly educated folks out there, really don’t understand how the payday lending industry works, it is easy to see how opponents of the industry are able to get people all riled up.

A recent piece in the New York Times reported that the proposed rule changes would only affect a billion dollar industry that ‘serves the working poor’ of this country. That is s common, though misleading view of the payday lending industry. A recent study found that 80 percent of people who take out short term loans make more than 25 thousand dollars a year, and that nearly 40 percent make more than 40 thousand dollars a year. Only around 18 percent of regular payday borrowers bring in less than 25 thousand dollars per year. That 18 percent is what most people envision when they are told about the plight of the ‘working poor’ in the United States. Seeing as how this group really only accounts for a minority of the people who take out payday loans, it is easy to see how the CFPB and its supporters are skewing the facts to tug at peoples’ heart strings. The fact of the matter is that most borrowers are able to pay back their loans, aware of the fees that they will pay and responsible enough to make their loan payments on time.

With Obama being one of the biggest cheerleaders for the CFPB, it looks like everyone will have to watch this bureau get their way for some time to come. But what price will people pay in order to give this organization even more power than it already has?