READ AN IMPORTANT REPORT FROM THE MEETING
here to read this report on our affiliate web site posted after
the meeting. Your TPCA login also works on that site.
THE NEW CFPB FEDERAL AGENCY TO HOLD THEIR FIRST EVER FIELD
HEARINGS IN BIRMINGHAM. -- January 16, 2012.
The new CFPB (Consumer Financial Protection Bureau), which only
recently named their new director with a
controversial appointment, is now set to begin their regulating
effort. They have set a field hearing for this coming Thursday,
January 19 in Birmingham.
Click here to see the notice. It is noteworthy they
selected Birmingham as the venue for this first ever field hearing.
It is noteworthy on two accounts. First, Birmingham is noted
as a birthplace for the civil rights movement (the hearing is being
held at the
Rights Museum) and second, we only recently went through an
extended battle over a moratorium against short term lending (click
here) in Birmingham.
The big question is -- what is the impact? The answer is -- no
one knows. The announcement was made last Thursday in the
press. We are working with the CFSA to coordinate attendance
at the hearing. They have developed a relationship with the
CFPB but the CFSA has not published a public statement yet.
It will be after the hearings before we have more information.
At a minimum, we believe this may mark the beginnings of the CFPB's
regulatory effort. But beyond that we do not know. We
will report back after the hearing with more information.
Finally, we need your help in locating customers who would be
willing to testify on our behalf. The CFSA is coordinating
this effort and you can
click here for all of the details if you believe you can help.
NEW CFPB FEDERAL AGENCY SET TO KICK OFF SHORTLY. -- July 16, 2011.
It has been one year since this landmark Dodd - Frank legislation
became law. This month is the month the new CFPB is scheduled
to begin operation. We fully expect this new agency to impact
our business, but at the moment there is no factual news on what
that impact might be. We suggest you visit
www.CFPBSpotlight.com frequently for the most up to date
DODD-FRANK FEDERAL REFORM LEGISLATION SET TO BECOME THE LAW OF
THE LAND! -- July 15, 2010.
TPCA members are welcome to read this critical update that will
affect everyone in the lending business. Click on the News tab
above and login for the full story.
If you are not a member of TPCA, now would be good time to consider
joining with us. We all will need help negotiating the
Click here for membership information.
FEDERAL REFORM LEGISLATION IS NOW IN THE CONFERENCE COMMITTEE &
MEETING WITH SENATOR MITCH MCCONNELL IS PLANNED.
-- June 14, 2010.
The House and Senate versions of the financial reform legislation are headed
toward a final resolution in the legislative conference committee.
Here is a simple explanation of what happens in a conference
committee. The committee began its work
last week (June 7th) with a target completion date of June 24th.
The 24th deadline is a fairly hard date if the legislation is to be
voted on and signed into law by the July 4th break, which is the
goal of the Democrats.
Our Senator Shelby was interviewed by the Wall Street Journal last
week. His discussion provides a very clear view into what this
legislation means for us and many other business owners. Click
on the video to see what Senator Shelby has to say.
MEETING WITH SENATOR MCCONNELL
AARAL has arranged a private meeting and fundraiser for
Senator Mitch McConnell this Monday, June 21 in Atlanta.
to learn more about this important meeting.
WHAT IS NEXT?
We can only watch this legislation unfold at the moment but we will
keep you posted on any major event. In the meantime you can
www.PaydayPundit.org for daily updates on the legislation.
This week and next will be see high activity for this legislation.
U. S. SENATE PASSES FEDERAL REFORM LEGISLATION. IT NOW GOES
TO CONFERENCE FOR FINAL APPROVAL BEFORE THE PRESIDENTS SIGNATURE
-- May 21, 2010.
As you most likely know, the Senate passed financial reform
legislation yesterday afternoon. BUT, before they did they
passed the Snow-Pryor amendment which became a part of the final
bill. That is a big plus for us (more on Snow-Pryor below).
The Senate bill is now on its way to
conference to work out differences with the House version.
Conference could last well into June. There will most likely
be changes that come out of conference, but the changes will be
primarily to work out differences between the two versions of the
legislation. CFPA, by the way, is one of those differences.
The Democrat leaders are saying they expect a signature by the
President before July 4th.
The Snow-Pryor amendment is one big improvement for us and can sure
make this bill "tolerable." It must survive the conference, though.
We are sure there will be many working to make that happen. There
are clearly nuances in the Snow-Pryor amendment's provisions as it
now connects CFPA with the SBA and the SBA provisions that govern
how the CFPA might impact small businesses. It has been described as
a "speed bump" for CFPA. It will become a bureaucratic
minefield if enacted, but overall it is a momentous tilt in our
favor from the previous version of this legislation
NEW FEDERAL FINANCIAL LEGISLATION MOVES CLOSER TO BECOMING THE
LAW OF THE LAND
-- May 17, 2010.
Financial reform legislation is making its way toward a final vote
in the U.S. Senate. Although our focus is on state and local
issues, we have joined a network of industry leaders around the
country and in Washington, DC to stay abreast of this action to keep
our members informed. We have indicated in previous updates
below that this legislation will most likely have a very significant
impact on our business. You can scroll down to read more about
just what it means for you.
Our sources believe that the legislation is possibly set to pass in
the Senate as early as this week. From there it will go to a
conference of the two houses where the different bills from each
house will be reconciled. After that process and a final vote
again by each house on the reconciled bill, it then goes to our
president for his signature. This process can take weeks or even
months. The expected time frame for signature is no later than Labor
We do believe at the moment that this bill will pass and then be
signed into law. But, keep in mind, this is politics and it
really is not done until "it is done."
The proposed massive new agency, called the CFPA, that will oversee
all consumer financial transactions will then become a reality.
They will begin establishing regulations on what we can and can not
do in our businesses directly from Washington, DC. These
regulations are expected to preempt local state regulations and the
CFPA will have the authority to go so far as to ban particular
products the "government" finds harmful.
The exact makeup of the new agency and their full authority will not
be known until the bill is ready for the president's signature
(after the conference and final vote again in both houses). We
have some ideas now about this agency and, frankly, it is not a
pretty picture -- at all (read more below). So, until then we
are all pretty much playing a guessing game.
On a final note, we believe it will take from one to two years for
the CFPA to gear up to full operation. So we don't expect an
immediate impact after the bill is signed into law.
We will get back with you as this process unfolds.
KEY VOTE IN SENATE YESTERDAY OPENS UP DEBATE AND MOVEMENT TOWARD
NEW FEDERAL FINANCIAL LEGISLATION
-- April 29, 2010.
The vote in the U.S. Senate yesterday prepares the way for new
federal legislation that will have a significant impact on us!
We suggest you go to
www.StopTheCFPA.com to learn all that you can about CFPA
legislation and what it really means. Be sure and view
If you want a more detailed view of where the legislation is today
in the Senate
click here. Although lengthy, it provides a good overview.
At this point we do not have any additional information to report.
We will get back soon. In the meantime, you may want to check
the Payday Pundit blog at
www.PaydayPundit.org often. They keep up with the latest.
KEY VOTE IN SENATE TODAY REGARDING FEDERAL REFORM LEGISLATION
-- April 26, 2010.
Most of you are probably aware that the U.S. Senate will vote today
on new federal reform legislation that will most likely impact us
all. Check back here in a day or so and we will provide an
update on what we believe the impact will be.
MEETING WITH KEY MEMBERS OF U.S. SENATE BANKING COMMITTEE
-- February 1, 2010.
Click here to read about an
important, high-level meeting with key U. S. Senate leaders that
will effect every single company/person who operates a title lending
or other short term lending businesses and who may be impacted by
CFPA legislation. As you may know, this legislation has passed
the U.S. House of Representatives and is now in the U.S. Senate
Banking Committee awaiting action. This legislation, if passed, will
dramatically alter the way we are regulated and the way in which we
conduct our businesses.
SENATOR RICHARD SHELBY DISCUSSES NEW
November 30, 2009.
Click here to read this
A NATIONAL UPDATE -- September 18, 2009
While we have weathered the immediate storm from the first of the
year, the threats against our industry from Washington are still
quite real. Each of us locally has a chance to learn more
about this and meet one of the critical players in the fight to
protect our industry and to make a difference. Roy Hutcheson,
a TPCA board member and a member of
AARAL has important information for you. Please
login in (click here) and
then go to the News tab above to read Roy's
important message. If you are not a member, but are in the
industry, you are welcome to register and read this important
update. To register, simply
click here and follow the easy instructions.
THE CURRENT BILLS IN THE U.S. CONGRESS -- March 23, 2009
Below are three bills that affect our industry that are currently
active in the U.S. Congress. The information on these bills is
updated and always current.
A BUSY WEEK IN WASHINGTON -- Updated:
March 31, 2009
There is a tremendous amount of activity in Washington DC this week.
to read about it.
MORE LEGISLATION -- Updated:
March 23, 2009
Since our last update several weeks ago we have seen movement in the
Gutierrez bill and a new bill has been introduced in the House by
Representative Speier. This new bill is a companion bill to
Senator Durbin's bill in the Senate. You can click on the links at
the top of this page for more information on the bills.
Here is a report that originated in Roll Call regarding the
Gutierrez bill. Please note the comments by the bank lobby
about how our industry has handled this situation. Not
DURBIN SENATE BILL -- Updated:
March 2, 2009 -- Second Update
We now have the text of the Durbin announcement. Click
to read. After you read this, it should take you no longer
than a nanosecond to determine who is behind this!
LEGISLATION INTRODUCED -- Updated:
March 2, 2009
The threat level in connection with our situation in Washington DC is moving up.
Please read through the post below for background on what we face as
an industry. Last Friday we notified you that national
legislation was introduced against us. That turned
out to be quite true! Actually, there was not one bill, but
two bills! The full text of the bills are not online yet, but
here is some information on the Senate bill and
information on the House
bill. You may want to check these links in a day or so for
additional information. In a nutshell, the Senate bill introduced by Durbin
places a 36% cap on our industry. It is similar to the
military lending bill, except now it covers everyone. The
House bill, strictly addresses payday lending. Both bills are
bad bills, but the Senate bill would most likely shut our industry
TPCA and Borrow Smart members can
log in and then
click here for more information and for
additional background and comments on what we might expect next.
STILL A DANGEROUS SITUATION -- Updated:
February 8, 2009
The situation in Washington is still dangerous for our industry.
We continue to work on a plan to establish a national presence, but
the launch of that effort is at least a couple of months away.
What we know at the moment is that legislation is being discussed in
Washington and that clearly we are in the crosshairs (scroll down to
read more). We are not aware of any specific legislation which
has been introduced and we believe the current focus on the stimulus
package takes the spotlight off of us -- for the moment.
We also believe that over the next ninety days our industry (short
term loans -- title & payday) will be up for discussion in
Washington and, further, that the current situation may change on a
moments notice, so be sure to check back here often for updates.
If you are a TPCA member please log in (here)
and then click on the News tab above (or click here)
after you have logged in
where you can read more about this important issue and a discussion
about our plans.
POLL RESULTS TO GET INVOLVED NATIONALLY & NEW HOUSE COMMITTEE
CHAIR -- Updated:
January 26, 2009
We have a few important situations to report. First, the
response to our poll below for us to get
directly and actively involved on a national basis as an association
was overwhelmingly positive, much to our surprise. We are now
working on specific plans to do this and will communicate with you
soon about this critically important issue.
Second, and perhaps more important,
there is a new chairman of the Subcommittee on Financial
Institutions and Consumer Credit in the new congress, which has a
direct impact on our industry. He is
U.S. Congressman Luis V.
Click here for the full story. This is not good. A
minimal search of this congressman shows this long term, Hispanic
congressman from Chicago to be quite a liberal. He is a former
school teacher, cab driver and now a congressman in charge of one of
the most powerful sub-committees in the House. He is a member of
Progressive Caucus. If you visit the Progressive Caucus
link and have a good internet connection you must click on the
"visual maps" icon in the upper right corner. You
will be amazed at the connections. Also, you
don't want to miss this about "progressives" in Congressman
Gutierrez's home town. He is from Chicago, which
as you know is the hometown of
payday lending change president, which also means their offices are
most likely in close communications and finally, in his own words
he has this to say, "I
plan to devote specific attention to payday lending reform, ensuring
that consumers do not get caught in a debt trap at the hands of
unscrupulous and virtually unregulated lenders."
So, first we have a payday reform
president from Chicago with a 68% approval rating, with one of
the most liberal voting records in the U. S. Senate and now
another Chicago based payday reformer, "progressive" who is in
charge of deciding the fate of our industry in the House. By
the way, don't forget the other Illinois based reformer (who
gets honorable mention here) -- Senator Dick Durbin.
Third, we see more and more evidence that there will
be some national legislation or regulation in the short-term
Click here to see what the consumer groups are pushing for
(this came out today!) -- then connect the dots with what you
see in the previous paragraph. It is not difficult to see
where this may be headed -- national legislation or
regulation. We know that most all of the industry
players and groups (payday loans, consumer loans, title loans,
and others) are maneuvering to be sure they are not tossed aside
in the madness of all of this.
So, to summarize, it should be abundantly clear our current and real industry
threat is national for the moment.
Don't feel disappointed or left out that
title lending is not mentioned in these stories. You can bet we
are in the same crosshairs. We've always said when payday
loans goes or is attacked -- so goes our industry
as in this
story. So, like it or not we are linked together in
the minds of many who determine our fate. It is a fact and
we need to find ways to work together - not against one another.
THE EXACT SCOPE OF THE PROBLEM IS UNKNOWN AT THE MOMENT, BUT.......READ
ON -- Updated: January 19, 2009
When the press begins to issue warnings about
what we face as an industry, you know we have a problem. The
Times Standard story below (click on image below to read) appeared this weekend. We don't agree with reporters often, but we agree with this reporter
-- we have a problem! From our discussions with national experts since our last
update (here), it is not clear if the new president
plans to immediately introduce the rate cap for our industry as he
promised he would do. You can see his promise
here. It is, however, perfectly clear
that he promised action against us and he promised action against
the credit card industry. It is also perfectly clear
that congress did act on January 15th on part of his credit
card plan. You can
read the credit card legislation by
As you read the
credit card article, take note of those congressional members who are quoted
(Senator Dodd, Senator Schumer, Rep Franks and Rep Malony).
These are the same people that drive a decision about our industry.
We believe most of those quoted here do not support our industry
and, in fact, at least one (probably more) has a close relationship with our main adversary,
the Center for Responsible Lending (CRL) -- click
here to see the connection (be sure to scroll down the full
You can read about the incredibly powerful CRL group
their highly effective strategy
here if you want to learn more. And after reading the
links above, if you still have doubts about the incredible power
of CRL, just
read this article from Business Week! You can bet they are
working the 36% rate cap issue in Washington with everything they
have. As an industry, this is what we are up against and the
only way we will survive is to join together and work to be just as
smart and powerful in the press and in our politics (local and
national) as they are. Otherwise.....
By the way, if anyone has
a picture of a high ranking payday or title industry leader with a
well placed Democratic national political leader, please pass it
along. We will post it here. For some odd reason, we
don't expect a tremendous response.
So we know the
president and the congress are serious about acting on interest and
credit issues. No one seems to know for sure if the cap is
being proposed at the present. We believe the
issue may be changing from moment to moment even within the new
administration. If it is not introduced in the new stimulus
plan, it will most likely turn up in the next few months.
Although there is a new national group --
AARAL (American Association of Responsible Auto Lenders) -- which
has been formed by several of the largest title loan operators in
the country, it is not clear they have an interest in representing
the small to medium operator or allowing our association to join
directly in their effort.
This is a critical problem for our industry. You don't have to
look around too far to see what has happened around the country with
rate caps in other states. And, we all know about the national military lending bill with a 36% cap.
So, a 36% rate cap has the very distinct possibility of becoming
reality for every consumer in the country (as it did in the
military lending bill). We don't need to tell you what that
means for our industry.
So, we are evaluating the possibility of
joining with several other states to establish our own national
representation. From the preliminary work we have done, it may
be feasible. If we do this it will be structured as an
extension of our existing state based associations and will include
our own national lobbyist group. Not having an industry voice
is so very important at this critical time when new and aggressive
financial legislation is being considered. We all know what
NOT having a voice can lead to!
So, it is time for your input on this
idea. Will you please take a moment and complete the brief
questionnaire below? This is for members and non-members
alike. Your input will help us in our decision. Click on
the button below to be connected to the questionnaire. The
poll is now closed. The response was overwhelmingly in favor
of proceeding with a direct national effort. We will get back
on this issue with our plans very soon.
Thank you for your help!
THE ISSUE -- January 16, 2009
Earlier in the week we sent an update
to everyone regarding our national situation. You can
go here to read that
report. Essentially, the issue is that with the introduction
of a new congress and president our situation in Washington is quite
dangerous and that the likelihood of a 36% rate cap is real.
As we reported previously, we held a meeting with a couple of other
state associations that represent title lending to learn more, to
exchange ideas and to discuss a possible plan of action. This
is a national problem and it will take more than just our
association to have an impact.