Payday Lenders Out To Gut Obama's Financial Reform Package

From Financial News USA of May 9, 2010:  The CFPA Bill, known as financial reform act, is very likely to pass. (Financial) Lenders of all varieties will have business models scrutinized once the CFPA gets up and running. You can bet that under the Obama Administration, subprime lenders from auto financiers to pawn shops to payday lenders will be shot on sight. This will be particularly true if Elizabeth Warren, an outspoken critic of predatory lenders, is named to run the agency. Particularly vulnerable are Advance America (see info on Conway in the next post), QC Holdings Dollar Financial, Cash America, EZ Corp, and First Cash Financial Services. http://www.financialnewsusa.com/finance/archives/14914-payday-lenders-in-danger-from-financial-reform-bill-

From Consumer Reports of April 27, 2010: Payday lenders, which charge exorbitant fees for short-term loans—often to inner-city residents—are also concerned about limits on their activities. Until now, they've managed to avoid regulation by defining themselves as non-banking entities. The Times story mentions concerns by the industry that a financial reform bill could change that status. http://blogs.consumerreports.org/money/2010/04/financial-reform-bill-senate-congress-block-exempt-auto-dealers-candy-makers-sugar-derivatives-.html

From the Washington Post of  Monday, May 10, 2010: Payday lenders and check cashers blanketed Capitol Hill last week to challenge the scope of the financial reforms under debate in Congress and combat the industry's reputation as the pariahs of the financial system.  http://www.washingtonpost.com/wp-dyn/content/article/2010/05/09/AR2010050902458.html