LendingBear CEO: Payday loan rule would hurt small businesses, borrowers
By Brian Lynn
Brian Lynn, Lendingbear CEO and a CFSA member based in Jacksonville, FL, was selected by the CFPB to provide insight into the impact of the proposed short-term lending rule on small businesses, as required by law. In an op-ed in the Orlando Sentinel, Lynn explains that what he expected to be a meaningful dialogue with regulators turned out to be purely for show, with a pre-determined outcome:
"During one small-business panel discussion, I asked CFPB officials if the bureau had looked at existing state laws to fully understand how payday loans are regulated. The answer was no. My home state of Florida is one of more than 30 states that have payday-lending laws with strong consumer protections that could serve as a model for the country.
But in typical Washington fashion, CFPB bureaucrats think they have all the answers. They made no effort to learn from state policymakers who have spent decades creating payday-lending regulations that protect consumers and make sure they have fair access to credit...
...the CFPB doesn't seem to care about small-business owners or understand consumers. The bureau's end goal has been to eliminate regulated payday loans. If the bureau officials had listened for even a moment to small-business owners or satisfied customers who use our service, they would know that eliminating access to short-term credit would hurt the people they say they are trying to help."
Read the full article here.