Obama’s lawless war on short term lenders will hurt millennials

 

The Consumer Financial Protection Bureau (CFPB), a regulatory agency, is writing law without consent of Congress. And, these regulations are going to hurt the most vulnerable among us.

Remember that pen and that phone President Obama likes to threaten us with? These new regulations circumvent Congress to enact a massive burden on private businesses.

Most of the time, this targeting happens, and no one even notices unless it’s your business being hit. The CFPB has targeted the financial industry, specifically related to short-term loans. In the next couple of months, they will change the rules so much that many American businesses and lenders will be forced to close.

That’s right. Our government will ruin perfectly good businesses and eliminate jobs simply by using the power of regulatory burdens. The people who use their services will have significantly fewer options and face a new mountain of paperwork bordering on insurmountable.

Millennials are one of the age groups that will feel the impact of this regulatory intrusion the most.

Why? They are younger, just starting out, and perhaps working a first job that doesn’t pay a lot. They’re working their way up the ladder, and when the 12-year-old Toyota Camry with 160,000 miles on it dies on the side of the road — what do they do? After getting towed to a service station they find out it will take $500 to fix.

What if they’ve already borrowed enough from Mom and Dad? What if they want to make it on their own, but they don’t have the $500 it takes to fix that car?

Most of us have been there. It’s a place with few options. A short term loan becomes an option.

Sure the interest is bad, but that car has to run, and by Monday, to get to work. In a few weeks, that option will be gone or severely impaired. After these new regulations many short term loan companies will simply be gone. If one does manage to stay open to give the Millennial in my illustration a loan to fix the Camry, they will have to fill out more forms than it takes to get a $500,000 mortgage. I am not overstating.

The CFPB is out of control — drunk on power and fond of over-reaching. This is a last ditch effort to impose the will of the administration before time runs out on Obama’s last year. These regulations are payback to others in the financial world who will be helped by putting their competition out of business, no matter if it hurts our younger generation and the people of all ages who need and want access to short-term monies.

We need these regulations to be delayed or not implemented at all. This type of sweeping change to the regulatory rules on the financial sectors without any congressional oversight is exactly what got us in trouble before. Only that was all Bush’s fault, right?

Well, this will be all Obama’s fault as he turns his back on the very people who voted for him. The young people and poor are the ones he promised his hope and change to the most. He doesn’t care about them when it’s a choice to favor his rich friends on Wall Street and at the Big Banks.

I guess being beholden to the rich and powerful will make you betray your promises of yesteryear. Millennials of every stripe will feel this hit. It’s your responsibility to tell your friends about this backdoor regulation being orchestrated by the Obama Administration.

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