Thu, Mar. 26, 9:58 AM
- "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," says CFPB boss Richard Cordray. "The proposals we are considering would require lenders to take steps to make sure consumers can pay back their loans."
- Among the options is a requirement for lenders to determine whether a borrower could repay the entire loan when it is due - rather than just rolling it over - by confirming income and debt. Other possibilities include capping the number of loans a borrower can get in a certain period, and/or capping interest rates and application fees.
- Source: WSJ
- World Acceptance (WRLD -2.7%), Cash America (CSH -4.2%), Regional Management (RM +0.3%), First Cash Financial (FCFS -0.9%).
- Previously: CFPB takes aim at payday lenders (Feb. 9)
Mon, Mar. 9, 5:40 PM
Mon, Mar. 9, 4:05 PM| Comment!
Mon, Feb. 9, 12:48 PM
- Complaining that payday lenders have become too expert at working their way around state laws aimed at clamping down on usurious short-term loans, the Feds are about to get involved for the first time, with the CFPB set to release a first draft of rules targeting payday lenders.
- At the center of the new regulations - a requirement that lenders assess whether borrowers can actually repay the loans at the end of their short periods. The data suggest few can, which leaves borrowers with no choice but to roll over loans, accept new fees, or taking out new loans altogether. The CFPB found borrowers took out a median of 10 loans over a 12-month period, with median fees of $458, median amount borrowed of $350M. More than 80% of loans were rolled over or renewed within two weeks - manna to the lenders, and the bureau is now taking dead aim.
- World Acceptance (WRLD -2.4%), Cash America (CSH -1%), Regional Management (RM -1.3%), First Cash Financial (FCFS -0.7%)
Oct. 31, 2014, 12:47 PM
Oct. 30, 2014, 5:35 PM
Apr. 30, 2014, 12:46 PM
Mar. 11, 2014, 5:26 PM| Comment!
Aug. 1, 2013, 9:41 AM
May. 3, 2013, 6:51 AM
RM vs. ETF Alternatives
Regional Management Corp., is a diversified specialty consumer finance company providing a range of loan products to customers with limited access to consumer credit from banks, thrifts, credit card companies, and other traditional lenders.
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