Mulvaney’s Call for Congress to Rescind Basic Borrower Protection Shows He Sides with Loan Sharks Over Consumers
WASHINGTON, DC – OMB Director Mick Mulvaney, who is unlawfully behaving as Acting Director of the Consumer Financial Protection Bureau (CFPB), last night voiced support for a Congressional Review Act to repeal the Consumer Bureau rule on payday and car-title loan debt traps.
Center for Responsible Lending Director of Federal Advocacy Scott Astrada issued the following statement:
The Consumer Financial Protection Bureau was established to prevent Americans from losing their money and their freedom to the tricks and traps of financial predators. With their 300%+ interest rates, payday lenders provide the archetypal debt trap. After more than five years of study and public engagement, the Consumer Bureau released a commonsense consumer protection that requires lenders to check a borrower’s ability-to-repay. In opposing this baseline protection, Mulvaney is siding with payday loan sharks instead of consumers.
As a Member of Congress, Mick Mulvaney wrote legislation (H.R. 4737) – before the Consumer Bureau payday rule was final – that would have let states opt out the rule and delayed its issuance and enforcement.
For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Matthew Kravitz at firstname.lastname@example.org or 202-349-1859.