Assignment # 1 (Summary/Background):
You are an assistant in an investment firm who needs to relay important information about the rule and those who are covered by the rule. For this assignment, effectively summarize for your immediate supervisor the proposed rule. You will need to describe who is covered by the rule and what they will have to do. Usually agencies will have a one paragraph summary of the rule. You will need to go far beyond one paragraph for the executives of your investment firm, and effectively summarize both the structure and the coverage of the regulation.
1. Audience: Upper Management
2. Format: Business Memo
3. Purpose: Efficient yet comprehensive summary of rule (no evaluation)
4. Length: 2 pages, full and complete sentences with minimal number of bullet points. Follows conventions for memo formatting.
- Consumer Financial Protection Bureau, Payday and Auto Title Loan Rule,https://www.federalregister.gov/articles/2016/07/22/2016-13490/payday-vehicle-title-and-certain-high-cost-installment-loans.
Traditional “Payday” loans are short term small dollar loans, typically for $300-$500, and typically for a two to four weeks – until the next payday. The charge for a typical 2 week loan is generally $15 per $100 borrowed. Auto title loans give immediate cash secured by the title to the consumer’s car. Like payday loans they are typically short term. The proposed rule would also regulate installment loans with total annual interest rates exceeding 36%. The proposal will require lenders to determine whether consumers can afford to repay in full loans greater than $500 without reborrowing while still meeting basic living expenses and major financial obligations.
Last Updated on January 28, 2018 by Essay Pro