Payday Loans: Financial Services Subcommittee Destroys CFPB Deputy Director

Make some time available and watch the Video below. There is particularly emotional testimony at 4:16:00 when a payday loan consumer, Mr. Sherill, describes how he started his own business via “these types of loans” and has 20 employees now! His employees rely on payday loans. At times he employs payday loans to access additional business capital.

Payday loan business, car title loans, small dollar lending… CFPB under attack.

This video is a must watch for payday loan consumers, employees, operators and anyone else who believes “big brother” does not know what’s good for Americans.

Want to see CFPB Deputy Director Silberman sweat while testifying during a Financial Services subcommittee hearing titled, “Short-term, Small Dollar Lending: The CFPB’s Assault on Access to Credit and Trampling of State and Tribal Sovereignty?.”

Fun! Fun! Fun! Ms. Love, Mr. Scott and Mr. Williams all sit on the Committee and SERIOUSLY nail CFPB Silberman.

“It would be great if you all would back-off and consider the consumer.” Mr. Williams

“I’m trying to understand why you’re trying to destroy small dollar loans. They are much needed. 75% of American people live paycheck to paycheck. They have emergencies!” Mr. Scott

“You and your CFPB cohorts are trying to destroy these loans! Why are you and other regulators trying to do this to the American people?” Mr. Scott

“You’re hurting the very people who need help the most.” Mr. Scott.

“This rule will reduce lender revenue by 70%.” Mr. Guinta.

“Americans rely on these payday loan, title loan and other products.” Mr. Guinta

“On what authority does the CFPB have to eliminate these small dollar loan products?” Congressman Guinta.

“The coziness between the Community for Responsible Lending (CRL) has been widely reported. Most people would define this as inappropriate.”Mr. Rothfus.

Do you know if The Center for Responsible Lending offers any products that would compete against payday loans?” Mr. Rothfus
“I understand the Center for Responsible Lending is affiliated with credit unions.” Mr. Silberman.

Mr. Mulvaney form South Carolina at 2:19:00. YOU MUST SEE THIS 🙂

The people of America want to lead their lives. They’re tired of elitists in Washington who think they know best. The people want to make choices.” Mr. Pittenger. 2:28:00

Executive Director of Community Financial Services Association CFSA Mr. Dennis Shaul begins at 2:36:00 “CFPB is out to destroy payday loan industry!

At 2:47:00 Mr. Sherill, a consumer, does a great job of explaining why the payday loan product MUST continue to be offered in the marketplace.

“The CFPB rule will eliminate the ability for banks and credit unions to offer short term loans.” Mr. Rothfus.

It starts up again at 4:13:00 Watch it!  The consumer describes life after prison and his inability to access credit. Banks turned him down. Credit unions turned him down. A payday loan lender saved his butt. The terms were very clear. They explained the payday loan product.


Tribe Payday Loans? Rodella Smith vs. Western Sky:

Another Western Sky Ruling

RODELLA SMITH, : CIVIL ACTION Plaintiff, : : No. 15-3639 v. : : WESTERN SKY FINANCIAL, LLC, et al., : Defendants. : MARCH 4, 2016

“This case presents an unusual and disconcerting collision between federal consumer protection laws and the sovereignty of Native American tribes and their courts.”

“Defendants here make “payday” loans across the United States through the Internet, and they seek to have their loan agreements governed by tribal law and challenged only in certain tribal courts or arbitral forums.”

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“Given the historic injustices visited upon Native Americans, the Supreme Court has understandably admonished that federal courts should tread lightly when it comes to intruding upon their sovereignty. See Iowa Mutual Insurance Co. v. LaPlante, 480 U.S. 9 (1987).”

“Defendants here invoke these principles in moving to dismiss Plaintiff’s case. For the reasons set forth below, I have concluded that Native American sovereignty is not at stake in this case, and I agree with the Fourth Circuit (among others) that Defendants seek “to avoid federal law and game the system.” Hayes v. Delbert Servs. Corp., No. 15-1170, 2016 WL 386016, at 9 (4th Cir. Feb. 2, 2016).”

“Defendants’ Motion to Dismiss will be denied.”

“I. Facts of this Case Plaintiff Rodella Smith alleges that she is the victim of a high-cost payday lender who has cloaked himself in the protections of tribal sovereignty and a series of shell companies to Case 2:15-cv-03639-GAM Document 27 Filed 03/04/16 Page 1 of 12 2 avoid complying with state and federal laws.”

“On March 7, 2012, Plaintiff Rodella Smith took out a loan from Defendant Western Sky Financial, LLC in the amount of $5,000. First Amended Complaint (“FAC”) at ¶ 8; Western Sky Consumer Loan Agreement (“Loan Agreement”), Ex. A to Defs.’ Mot. Dismiss, at 1.”

“According to the terms of the Loan Agreement, which she viewed online and signed electronically, the loan was subject to an annual percentage rate of 116.73%, and the repayment term was set for a period of about seven years, resulting in a total payment of $41,172.61. Loan Agreement at 1.”

“Almost immediately, the loan was sold to Defendant CashCall, Inc. on March 10, 2012, and then subsequently sold to Defendant Delbert Services Corp. on September 30, 2013. Defs.’ Mot. Dismiss at 7. Plaintiff alleges that Western Sky is a limited liability company registered…” Link to Western Sky Decision.

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