Kansas City In The Payday Loan Hearings Spotlight
On June 2, 2016 the payday loan industry has a spotlight on Kansas City. That’s right, our hometown is the focal point to
a national day of action. Advocates expect federal guidelines to be outlined to help protect people from the high interest rates associated with payday loans.
How Payday Loans Work
Payday loans can start off sounding like a quick and easy fix to get someone over their finance hurdle. Pay a fee and get the cash you need. Sounds simple enough. Well when the next payday comes around and the individual cannot make the payment to the lender, the borrower must roll that amount borrowed over and pay a new fee. On a national average this fee sparks an interest rate of 450 percent.
What Can We Expect From Payday Loan Hearings
The Consumer Financial Protection Bureau will hold a hearing about payday lending or small-dollar lending on Thursday June 2, 2016 in our hometown of Kansas City at the Music Hall. The expectations of the meeting is to release proposed rules covering payday lending, car title loans and installment loans.
New regulations that are planned to be introduced are supposed to allow payday loan borrowers to pay their debt off quicker. The plans that have been talked about have already upset many consumer advocate groups saying that the proposed measures aren’t going far enough.
The proposed rule is a culmination of years of research and meetings and consultations with lenders as well as borrowers. These meetings have been carefully engineered to ensure the CFPB actions are in line with the authority that the U.S. Congress gave it in 2010 when Dodd-Frank was signed into law.
What is Dodd-Frank
Dodd-Frank is a Consumer Protection Act that made significant changes to financial regulations. The changes are in the American financial regulatory environment that affect all federal financial regulatory agencies and close to every part of the nation’s financial service industry.
Eliminate Your Debt
We see people that come to our office seeking a financial fresh start either using Chapter 7 Bankruptcy or Chapter 13 Bankruptcy due to not being able to pay back their payday loans due to the high interest rates associated with these loans. In our office we see an average interest rate range from these loans around 450 to 600 percent.
If you or someone you know have been trapped by the burden of debt, call Castle Law to discuss how you can get a fresh financial start at 816-842-6200, or click here to contact us. You’ll be glad you did!