The new regulations will limit people with low and middle income who are using payday loans
The Consumer Protection Bureau has published a new law on the limitation of payday loans, rather than shielding consumers from some of the pitfalls of credit institutions, now it will create serious problems for them.
After an unpleasant story with Equifax, who laid out the personal data of millions of Americans to open access, now the law provides for putting millions at risk. The new rule provides that lenders can collect and share confidential customer data with credit reporting agencies, such as Equifax. This can be threatened by the fact that the CFPB will not see a huge amount of customer data. It turns out that in fact, the Consumer Financial Protection Bureau, its rule expresses dissatisfaction with the fact that most payday lenders do not provide any information to state agencies on the accountability of consumers Equifax, TransUnion and Experian.
Moreover, this information of strict confidentiality will be provided to the same department – the CFPB, in which the Ministry of Accountability has already been criticized for failing to comply with due control on the protection of personal data of consumers. This does not give proper confidence. Not long ago, the Federal Deposit Insurance Corporation – another financial regulator, announced that over the past two years their database was hacked 54 times.
Demonstrations of potential hackers are certainly enough to cause serious concerns about the new rules of borrowing. To my great regret, problems for consumers payday loans, this does not end there.