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Payday loan business coming under close scrutiny by CFPB

Payday loan business coming under close scrutiny by CFPB

The Consumer Financial Protection Bureau (CFPB) is looking into payday lending and in the next 12 to 18 months may issue guidance or propose regulations for the $46 billion business. At a CFPB hearing in Richmond last week speakers for and against payday loans were heard. Read more …

“I believe that the CFPB is committed to progress,” said Jay Spear, Executive Director of the Virginia Poverty Law Center who attended the hearing. He also notes that coincidental with the hearing, Virginia Attorney General Mark Herring said that he was reorganizing his consumer protection section “to include a focus on predatory lending.”

Under the Dodd-Frank Act interest rates cannot be capped, so new regulations may require the lender to ensure that the borrower can repay the loan, or there may be a limit to the number of loan roll overs. Spear thinks that the second choice will be the most acceptable to everyone.

A recent Pew Trust report recommends that a payday loan be limited to five percent of a borrower’s income. “At the moment,” Spear says, “The payday loan business is based on their ability to collect, not the borrower’s ability to pay.”

Our advice: never ever use a payday or title loan, even for unexpected expenses, let alone to pay regular bills. Ask first for help from family, friends, church or an advance from your employer. Cut expenses or get an extra job. Sell a second car if you can get along with one vehicle for a while.

For anyone already behind on a payday loan, we can help. Boleman Law is Virginia’s largest consumer bankruptcy law firm. Since 1991 we have helped more than 106,000 Virginians regain their financial health.

We will help you.
Payday loans listed in 59.5% of our online requests for consultation with an attorney

G. Russell “Rusty” Boleman, III

Russell “Rusty” Boleman III, Chairman of Boleman Law Firm, P.C. and his wife, Gayle have enjoyed almost fifty years of marriage and working together. Their early days were spent in Virginia, Illinois, Wisconsin and finally Texas, where Rusty worked as a technical recruiter in the oil industry. Then, suddenly, the American oil industry collapsed with low oil prices. Rusty and Gayle, along with thousands of American oil workers, experienced loss of jobs and income.

As Boleman Law clients know all too well, during a financial crisis, bad things can happen to anyone. The poor treatment Rusty and Gayle received as they sought solutions to financial problems led them to believe that there was a need for a change in bankruptcy law practice.  At age 40, those experiences led Rusty to law school in Richmond -much later in life than most of his law school colleagues.  He worked all through law school with Gayle at his side.  After graduation, they founded Boleman Law Firm in 1991 with the goal of treating everyone who came to them seeking help with respect and dignity, while providing excellence in customer service and legal advice.

Rusty’s strong commitment to legal knowledge, ethics and community service has made him one of Virginia’s leading lawyers, Rated AV Preeminent® by Martindale-Hubbell and a Virginia Lawyers Weekly 2017 Virginia Leader in the Law. Almost 30 years later, the firm that bears his name has helped almost 110,000 Virginians regain their financial health. The 13 lawyers and 30 staff members carry on the traditions of excellence and compassion as they provide assistance to over 10,000 folks each year.

Rusty and Gayle are proud parents of one daughter and grandparents of two grandchildren.  They and their two cats are now enjoying semi-retirement and spending time with their family. But, no matter where they are, they are never far from their other family, the lawyers and staff who strive every day to make Boleman Law Firm a safe and happy place for both clients and employees.


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©2024 Boleman Law Firm, P.C.

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