Former Deputy Director for the Consumer Financial Protection Bureau Raj Date recently recommended banks adapt to a short-term loan program similar to Wal-Mart’s prepaid card program.
The Wal-Mart lending system issued prepaid credit cards that were cheaper than the average price of prepaid cards. Date said short-term loans are desperately needed but poorly provided, and called for an increase in the efficiency and benefits of short-term loans.
Date opened Fenway Summer LLC in April. The firm is located in Washington, D.C. and specializes in advising clients on business strategy, working on mergers and acquisitions and helping smaller firms, according to Bloomberg.
The firm will not focus on short-term loans, but Date said he hoped to work with at least one bank to help improve its deposit-advance, short-term loans.
Date previously held several positions with the newly created CFPB. He began his service with the bureau in February 2011 as associate director of research, markets and regulations then stepped into Elizabeth Warren’s leadership seat in August 2011 after she resigned from the agency.
A graduate from the University of California, Berkeley and Harvard Law School, Date worked in the banking industry for many years before moving into the government sector.