An op-ed submitted to the Kansas City Star.
By decree of the Obama administration, Americans may soon face new regulations when it comes to lending and they could negatively impact Americans at all levels of the economic ladder.
Similar to an edict from a king, these regulations do not come from those elected to represent the people or even the people themselves. Although the U.S. Constitution expressly prohibits the President from creating legislation, these new rules for lending come from a president that seems obsessed with changing the world as we know it, regardless of what the Constitution says. Furthermore, he has continued to brag he can do it with his phone or his pen. He was right.
The Consumer Financial Protection Bureau, another new agency created by the administration issues more than 1,000 pages of rules this Wednesday. On Thursday, they will host a staged public forum to discuss the rules, less than 24 hours after their release. In Obama’s world, it is assumed that no one will read regulations, but they will eventually grow to like them “once they figure out what’s in there.”
This is in no way written in defense of the short term lending industry. However, these proposed rules could provide a staggering blow to consumers that are typically cut off from credit by traditional lenders. In the minds of the liberal elite, these folks will just go to a traditional bank when times get tough.
The regulations will likely do nothing to address the issue of ongoing illegal, unregulated lenders who will thrive once legal small lenders are regulated out of business. For better or worse, the type of unintended consequence of such an action is far less appealing – illegal loans. Where will the poor, needing small dollar loans, go to receive the help the need to get through a medical, vehicle or housing emergency? No one really knows or seems to care – this is just the latest in a long list of fixes this administration seeks in the name of “social justice.”
I’m of the belief the president can’t manage. If this story sounds familiar – it should. Obamacare was shoved onto us with the same amount of care. Now, he is trying to manage our right to borrow and our wallets.