The CFPB is making it easier for predatory lenders to take advantage of the most vulnerable consumers under Trump appointee Mick Mulvaney.
By Michelle Chen Twitter
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January 16 had been allowed to be the afternoon of reckoning for the notorious predatory-lending industry, each time a guideline through the Obama administration’s consumer-watchdog agency would finally begin to control a small business that is fleecing the indegent. However the time the regulation that is new set to start working, the Trump White House’s newly appointed head regarding the agency dec
This past year the customer Financial Protection Bureau (CFPB) crafted a long-awaited guideline on payday lending—the industry providing short-term loans that exploit poor consumers—to clamp down on fraudulence by forcing loan providers to “reasonably determine that the buyer is able to repay the mortgage” (as opposed to defaulting or publishing to much more exploitative terms). The guideline, spearheaded by the federal government and commonly supported by customer and public-interest teams, permitted exemptions for smaller-scale loans by needing loan providers to adhere to particular consumer-protection conditions as opposed to feel the “ability-to-pay” determination. Continue reading