Rob Cox and Daniel Indiviglio have created what they call the “Cordray Index” to measure the impact of new regulations on the “netherworld of the money industry”--the payday lenders, pawnshops, and others besides banks that are under new scrutiny from the Consumer Financial Protection Bureau.
The assumption is that new regulations from the CFPB will bring these alternative lenders back down to earth. Some listed in the index are facing increasing scrutiny over abusive practices.
Earlier this year, the Federal Trade Commission reached a $2.5 million settlement with Asset Acceptance Capital, with the agreement that it would stop threatening clients with lawsuits when their debt passed the legal time limit for collection. Another Cordray Index member, Green Dot, produces reloadable debit cards that scam artists have used to prey upon unsuspecting consumers, according to Minnesota state officials and the Better Business Bureau. Both companies are among the worst performers of the Cordray Index.
(h/t Ben White)