Valerie Hletko Quoted in Law360 Article, "Data Will Be Key in Evaluating CFPB PayDay Proposal"Valerie L. Hletko
Valerie Hletko was quoted in Evan Weinberger's Law360 article, "Data Will Be Key in Evaluating CFPB Payday Proposal," on May 31, 2016.
The federal government’s consumer finance watchdog is expected to face tough scrutiny of the data it used to write first-of-their-kind rules for payday, auto title and other short-term loans when it unveils a formal proposal later this week.
The Consumer Financial Protection Bureau is expected to release a proposal that will govern the way payday loans are issued and collected, among other changes, that could fundamentally alter the way the industry operates and do away with some market participants. Consumer advocates say they hope that the coming proposal will be the next step in eliminating the perils of those financial products, but the industry argues it could limit options for consumers with nowhere else to turn when they face a short-term cash crunch.
“The quality of the rule rises and falls in large part with the integrity of the data,” said Valerie Hletko, a partner at Buckley Sandler LLP.
“If the [SBREFA] outline turns out to be the rule, it will be difficult to structure a small installment loan within those parameters that is profitable,” Hletko said.