One popular counter to the CFPB and it’s regulation of the payday industry is that oversight should be shared with, or even shifted more so, to State regulators versus the much maligned federal agency.
In the case of Texas, that means our friends at the OCCC would be that ideal option. The highly experienced leadership at the OCCC has been overseeing various consumer lending industries for decades.  This agency without a doubt is much more qualified to license, regulate, and examine Credit Access Businesses offering cash advances, installment loans, and auto title loans to Texas residents.
For years many small business owners, clients of CAB Consulting, and Members of the Texas Organization of Financial Service Centers have wondered what the CFPB truly knew about the payday industry, other than what was told to them by consumer advocacy groups who despise the industry.  Then, when the CFPB Payday Loan Rule was finally released, it was again evident that that CFPB knew nothing about the industry, other than they wanted to kill it!  Just like many “CABs” in Texas, Mick Mulvaney wants to shift the responsibility in the direction of State regulators.
Here is a quote from a recent article written by Joann Needleman and Timothy Lee, of Clark Hill:
“At a recent gathering of states attorneys general, Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) indicated his preference that they take the lead on the enforcement of consumer protection laws along with state regulators. According to Acting Director Mulvaney, “States know best how to protect their own consumers.”


Post image for CFPB and Mick Mulvaney focusing in on Debt Collectors

CFPB and Mick Mulvaney focusing in on Debt Collectors

by The CAB Man Texas on March 29, 2018

It was in the news over the last 24 hours that Mick Mulvaney and the CFPB will be centering their focus on Debt Collectors who have traditionally been in the #1 position, as far as complaints go.  For over two years, it was discussed by the payday industry that our group was, month after month, year after year, the industry with the biggest drops in complaint percentages.
The question was always asked, “Why would the CFPB invest so much time on an industry where the complaints are decreasing and are at a much lower level than many others?” Now that we have a level headed individual heading up the CFPB, we are beginning to see some very practical moves being made to re-focus the CFPB’s priorities around the source of the biggest complaints.  Along with that, it does appear that the CFPB is loosening its focus on the so called “payday loan industry.”  That is a good thing for Texans. The Office of Consumer Credit Commissioner is an experienced agency that is more than capable of regulating our space in Texas.
Here are some direct quotes from the Wall Street Journal piece:
The Consumer Financial Protection Bureau will team up with the Federal Trade Commission to police debt collectors as it shifts to a gentler form of enforcement under the Trump administration.
Mick Mulvaney sees debt collection as an enforcement priority
because the CFPB gets many consumer complaints about that industry, even as the bureau begins to ease its grips on other sectors such as payday lending.
ACA International, a trade association of debt collectors, “welcomes the news of close coordination between the CFPB and FTC,” a spokeswoman said. “We endorse the efforts of the CFPB and the FTC to target bad actors who engage in unlawful debt collection practices.”
“In 2016, almost a third of the complaints into this office related to debt collection. Only 0.9% related to prepaid cards and 2% to payday lending. Data like that should, and will, guide our actions,” Mr. Mulvaney wrote.


OCCC’s 2016-2017 fiscal year data ahead of Finance Commission Meeting on Friday 10/20

November 8, 2017

OCCC and Finance Commission Report Information, Meeting is Friday 10/20 and will summarize data from September 0f 2016 to August of 2017. CAB Examinations:  Down from 707 in 2016 to 652 in 2017 (-7%). CAB acceptable level of compliance: 98.93%. Complaints processed payday: 208 in 2016 and 148 in 2017 (-28.8%). Complaints processed title: 198 […]

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CFPB issued the final Payday Loan Rule today

October 5, 2017

CFPB Rule came out today.  It is 1,600+ pages and I am hearing from folks on it but no one knows a lot at this point.  I need to start reading and as I connect with others to learn more I will of course relay what people are saying. Effective date is 21 months after […]

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Credit Access Businesses offering payday, installment, and title loans help US consumers avoid padding the banks fat pockets

October 3, 2017

So much time and effort is spent on attacking the “payday loan industry” it is baffling.  Why do consumer advocates and the CFPB refuse to make the banking industry Public Enemy #1 instead? See below for a shocking breakdown of how banks target and abuse US Consumers with un-godly annual revenue via Overdraft and NSF […]

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Texas OCCC issues advisory bulletin to licensees on how to remain in compliance while dealing with Harvey aftermath

September 8, 2017

Our friend ROb Norcross at CSAT sent over some really good details that he had gathered in response to the OCCC issuing advisory bulletins to licensees on how to remain in compliance while dealing with Harvey aftermath.  I scraped some of those details and organized them below for CAB stakeholders in Texas, and business owners […]

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The infamous and continuously failing Texas Payday Loan City Ordinance.

August 22, 2017

Since Texas cities began passing the infamous and continuously failing Texas Payday Loan City Ordinance there has been a decrease of 1,300 or so licensed locations inside the State.  According to the most recent OCCC licensee totals, this represents a 37% market shrink.  The results have been a shuttering of businesses in Texas, a loss […]

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The OCCC is seriously focused on Credit Access Business Examinations right now – are you ready?

August 21, 2017

Over the last several weeks there has been a significant uptick in OCCC examinations of our Credit Access Business friends and clients.  Are you ready for the OCCC to walk in your door?  Chances are if you are a member of TOFSC or if you are a client of of CAB Consulting you are in […]

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OCCC Compliance Basics from CAB Consulting

June 27, 2017

Just a reminder for all of you CABs out there – continually review your Consumer Transaction Information Disclosures & Fee Schedules. Many times throughout the course of the year CAB operators may change their CAB fee amounts or offer different loan products such as offering multi-payment installment loans, payday loans, or auto title loans.  When […]

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The Houston Chronicle is dabbling in the in Payday and Title Loan conversation again

June 20, 2017

Babin, DiNardo: State should not loosen payday lender regulations. Written by Anna M. Babin and Cardinal Daniel DiNardo.  Let’s take a minute and dice up this Houston Chronicle piece on Texas Credit Access Businesses.  The newspaper was apparently not satisfied with their role in passing the Houston “Payday Loan Ordinance” which caused a massive amount of […]

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