Many have never heard of the Consumer Financial Protection Bureau, and many of those that have do not know what exactly it is that they do. It can be expected based on the name that they regulate different financial institutions, and work to protect consumers.
There are some people who do not feel that payday lenders are regulated, and that if they are they are not regulated enough. They do not know how the Consumer Financial Protection Bureau fits in with it all. In most states these payday lenders are regulated and it is the Consumer Financial Protection Bureau that regulates them.
Credit unions and banks are not the only financial institutions that are subject to federal regulations. Payday lenders are as well. Payday lenders too have to follow and comply with regulations such as Truth in lending disclosures, regulations that protect the service members, and fair lending laws.
Some people feel that even though these payday lenders have regulations to comply with that they cost much more money than if one was to go to a credit union or bank. However there is some things to keep in mind.
First is that to get one of these small short-term payday loans from a credit union you must be a member. That is fine and all if you are already a member, but what if you are not? Do you really want to become a member just to get a payday loan?
Another thing to keep in mind is that some of these cooperatives often charge application fees. These applications fees can drive up the total cost of the loan. The cost can reach and even exceed the total cost of getting a payday loan from a traditional storefront payday lender.
Banks do not make you become a member to get a payday loan. However, one must remember that they too have application fees. If you do pay the application fee and are not approved, not only are you still in need of a payday loan, you are now also out of the money for the applications fee.
Paydays advanced businesses are regulated just like banks and credit unions. The Consumer Financial Protection Bureau is working hard to make sure that they do not slip through the cracks and are forgotten about. They keep up with what each location is up too. They make sure that getting a loan from these places is just as secure as getting one from a bank or credit union.
Many have found that with the Consumer Financial Protection Bureau, it is becoming increasingly safe to use these payday lenders. They must follow laws, and comply with regulations. So whatever they do it has to be as legally allowed as what a bank or credit union would do, making them just as safe.
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