When it was first created, the Consumer Financial Protection Bureau (or CFPB) was supposed to help people stay out of debt. One of their first steps was to increase regulation of the lending industry. Opponents of the CFPB says these new regulations have hurt private lending, which in turn has impacted the American working class.
President Trump wants to take power away from the CFPB. This will lower the amount of restrictions and red tape placed upon lending companies, which will give them greater freedom to loan money.
Will this movie actually help people, or just give more power to banks and lenders?
Making Lending Easier for Everyone
When the CFPB targeting small lenders and private lending companies, they forced many of them out of business. With fewer lenders available outside of the mainstream financial system, millions of people are being denied fair and equitable access to loans.
The truth of the matter is that the Big Banks do not (and will not) serve all Americans. Tens of millions of people live without using a bank at all, either through cash-only finances, or “alternative banking.”
While some people do this by choice, others do not. The major financial institutions will not work with them in any reasonable way.
Private lending allows these people access to loans, where otherwise they would have no options.
The more competition there is in the loan industry, the better it will be for borrowers. There will be more lenders, more lending, more loans, and greater access to funds.
No Political Statements
The purpose of this article is not to make political statements. Politics these days serve only to divide, not to unify. At National Small Loan, we have a single, unified message of providing the most positive lending experience to anyone the banks can’t or won’t help.
When there is less pressure and legislation against small lenders, then everyone benefits from having a greater number of financial choices.
It doesn’t matter if you are “red” or “blue” because National Small Loan is Red White and Blue through and through. Loans are our business, and we are proud to be doing business in the greatest country in the world.