Special Interivew: Payday Advance Opponent Speaks Out
By J.J. CameronPayday Loan Writer
We reported earlier this summer that Mark Pearce, the former president of the Center for Responsible Lending and a major opponent of payday loans, had been hired as a deputy state banking commissioner for the N.C. Commissioner of Banks.
The appointment arrived at a time when some no faxing payday loan lenders are contemplating a re-entry into North Carolina. Pearce took time out to talk about his new job with The Winston-Salem Journal:
The Center for Responsible Lending has a reputation for being a left-leaning consumer-advocacy group. Do you have any concerns about that reputation affecting your ability to do your new job?
I have never thought of the center as left-leaning, as the center found common ground with both conservatives and liberals, Democrats and Republicans, on many issues. Almost everyone is against abusive [payday advance] lending practices, and I would expect the center's reputation as a strong, fact-based research and policy organization will only help me in my new role.
What do you think your hiring says about the direction of the Commissioner of Banks' office?
The Office of the Commissioner of Banks is well respected as a leader in state financial regulation. I think my hiring highlights that the regulation of nonbank entities, those that specialize in a particular set of loan products, is an increasingly important area to the borrowing public.
What expertise do you believe you will bring to the office that was lacking?
I hope I will supplement the existing expertise at the Office of the Commissioner of Banks, probably most directly with my experience with predatory mortgage lending and small short-term, [same day payday loans]. I also hope I can support efforts to protect North Carolina's ability to protect its citizens and local lenders from out-of-state lenders that abuse federal law to offer products not allowed in North Carolina.
Do you believe you can be more effective operating from within the commissioner's office than as a voice outside it?
I think both roles are important. I am excited about the opportunity to participate directly in the regulation of lending here in North Carolina.
Will there be a direct link between the commissioner's office and Center for Responsible Lending, or will there be a clear, transparent separation required?
To be a good regulator, you have to talk with everyone - lenders, advocates, the public and other interested people. I think to make good decisions on almost any issue, you need to consider all sides of an equation.
What will be your focus in your new job?
I think one of the exciting things at the Office of the Commissioner of Banks is our effort to combat mortgage fraud. North Carolina has a great number of high-quality lenders and brokers. But unfortunately, there are still some scam artists out there that do not comply with North Carolina's law.
Those bad operators hurt not only the individual homeowners and families, but also tarnish the reputation of the lenders and brokers that do good business for people. Another project that I am excited about is the opportunity to promote increased participation in our banking system among people that don't have banking accounts. (And, therefore, would not quality for any sort of pay day loan.)
In today's world, small decisions about financial matters can have a large impact on your ability to get loans on the best terms. I hope we can assist in improving financial literacy.
