Financial Reform Falling Under Criticism for 'Missing The Mark'

LOS ANGELES, July 7 /PRNewswire/ -- AboutPaydayLoan.com - Millions of hard-working Americans will soon be facing some drastic changes to their already limited finance options soon if a new proposed financial reform bill is passed.  Although many hard working families already find it tough to find finance when they are in a bind, the new financial protection bill is already being criticized for potentially eliminating jobs and consumer credit options during our economic crisis.  

Senator Chris Dodd's proposed financial reform bill is the government's response to the recent subprime mortgage crash and the following economic crisis, but some argue that the aim of the bill misses the mark entirely.  It seems that financial giants such as Freddie Mac and Fannie Mae who are allegedly responsible for creating our economic situation have escaped any reforms at all, while those offering small consumer loans and finance options will apparently be paying penance for an economic situation which they did nothing to create.  

Although the timing may prove to be a little too late, mainstream media outlets including the Wall Street Journal and USA Today are beginning to speak out and urge our Senators to vote against the financial reform bill in its current form.  One of the most common objections to this bill, is that it seeks to oversee and regulate small consumer financial products which are already regulated and fully disclose the financial terms.  For example, American families often times finance dental procedures for themselves and their children, and it is not uncommon to seek the some type of financial assistance to help cover expensive dental procedures.  Many dental offices offer finance options "in-house," but if Dodd's bill is approved that may soon change.

Another small consumer finance group that stands to face even more regulation under the new bill would be payday loan lenders such as pay1day.com or Extra Cash Net USA offer customers a quick finance option when banks and credit unions do not.  Although direct lenders will face new regulations, sites that generate payday loan leads will still remain unregulated, since they do not directly lend money, and simply act as a "middle-man" between the borrower and lender.  Unfortunately for hard working families who need quick cash advance loan until their next payday the new financial protection bill aims to place even tougher regulations on the payday lending industry, even though these lenders are regulated by strict State laws currently.  

Hopefully this recent outcry from the mainstream media will reach the ears of hard-working Americans and our Senators, to avoid a needless "over-regulation" which may in fact harm our economy and create more job losses.  After all, we don't need more regulation for products that already follow strict guidelines, and aren't the cause of our economic crisis.  Perhaps our Senators should consider regulating those responsible and protecting Americans from harmful mortgages and derivatives.

SOURCE AboutPaydayLoan.com