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Why every American should want a strong CFPB
December 6, Los Angeles Times
If you have — or ever want to have — a bank account, credit card, debit card, car loan, student loan, home loan, payday loan, credit report or any other financial product of any type, or if you were harmed in any way by the 2008 financial crisis, then you have a personal stake in the success of the Consumer Financial Protection Bureau.
Reposts: Circleville Herald
Top Stories
Attorney General Becerra Joins Amicus Brief Calling for CFPB’s Independence
December 10, Imperial Valley News
California Attorney General Xavier Becerra Friday called on the Trump Administration to respect the Consumer Financial Protection Bureau’s (CFPB) independence. The CFPB works tirelessly to protect consumers from fraud, abuse, and unfair business practices, and has returned $12 billion to American consumers since being created in the wake of the financial crisis. It was carefully crafted by Congress to be an independent agency.
Trump Financial Regulator Mulvaney Pushed CFPB To Back Off Industry That Bankrolled Him
December 8, International Business Times
Consumer Financial Protection Bureau chief Mick Mulvaney repeatedly pressed the agency to back off lending regulations as financial industry donors were bankrolling his congressional bids, according to government documents obtained by International Business Times. Some of the letters signed by Mulvaney that pressured the agency came within weeks of him raking in campaign contributions from payday lending industry donors who were urging the CFPB to stand down.
Payday Lenders Continue Attack on Consumer Protections
December 7, The Skanner
“If at first you don’t succeed, try, try again” is a well-known adage. In recent weeks, it seems that phrase could also be an apt description of the unrelenting efforts of predatory payday lenders to sell their wares. Across the country, 15 states as well as in the District of Columbia, with varying geographies, economies and demographics have enacted strong rate cap limits. In each locale, these actions were taken to curb the harmful consequences of payday lenders’ 300 percent or higher interest rate loans.
Looking to buy Christmas presents with credit? Beware holiday loan schemes, state department warns
December 7, LNP
Shoppers and state residents seem to have enough financial pressure on their shoulders without the threat of money lenders pitching fraudulent or deceptive ways to cover holiday expenses. The state Department of Banking and Securities is warning borrowers to beware advertising this month promising quick, easy money from unlicensed, out-of-state lenders this month.
Millions Are Hounded for Debt They Don’t Owe. One Victim Fought Back, With a Vengeance
December 6, Bloomberg
On the morning a debt collector threatened to rape his wife, Andrew Therrien was working from home, in a house with green shutters on a cul-de-sac in a small Rhode Island town. Tall and stocky, with a buzz cut and a square, friendly face, Therrien was a salesman for a promotions company. He’d always had an easy rapport with people over the phone, and on that day, in February 2015, he was calling food vendors to talk about grocery store giveaways.
Consumers need a hero, not a hack, to head the CFPB
December 6, The Hill
There has been a lot of attention focused on the battle over who is the legitimate director of the Consumer Financial Protection Bureau (CFPB). The president has appointed Office of Management and Budget Director Mick Mulvaney (who once referred to the agency as a “sad, sick joke”) to be interim director, raising a number of issues and concerns about its future direction.
CFPB example of government agency that works
December 5, The Morning Call
Columnist Jay Ambrose’s Your View claims that the Consumer Financial Protection Bureau (he even got the name wrong), by cracking down on “unfair payday loan policies” has made it “impossible” for “vast numbers” to get loans they badly need.
Prominent lawyer could lose Alapocas home after payday loan scheme conviction
December 5, Delaware Online
A prominent Wilmington lawyer could lose his home following his conviction in a massive payday loan scheme. A forfeiture hearing has been scheduled for next Tuesday following his conviction in a massive payday loan scheme.
Bad Day for Payday Lender: Jury Convicts Online Lender of $220M
December 4, Lexology
Recently, a Manhattan federal jury convicted Richard Moseley Sr., the head of an online network of payday lenders and loan servicers, on charges of wire fraud, aggravated identity theft, and violating the Racketeer Influenced and Corrupt Organizations Act and Truth in Lending Act, among other counts.
Mick Mulvaney: Payday lending campaign contributions pose no conflicts of interest
December 4, CBS News
The declaration came as Mulvaney outlined policy and enforcement shifts he’s weighing while serving as acting director of the Consumer Financial Protection Bureau, including a different position on the watchdog’s new payday lending rule. “It’s not at all unusual for a new administration to change positions on various policies,” Mulvaney said during an afternoon briefing with media reporters. “This place will be different … than it was under Mr. (Richard) Cordray,” who resigned as the bureau’s director late last month, he added.
Why do lawmakers favor banks and payday lenders? Follow the money
December 3, Standard- Examiner
“Follow the money.” These magic words will give you more political savvy than any others. Simply ask who financially benefits, and the heavy curtains of partisan politics pull back, revealing the wizard for who he really is, along with the lever-pulling lobbyists.
Trump seeks to neuter financial watchdog
December 2, Newsday
The Trump administration would like to make it easier for shady Wall Street firms to rip you off. To this end, it is working to undo one of the smartest things that Congress ever did. Recognizing that dishonest lending practices led to the 2008 financial crash, Congress created the Consumer Financial Protection Bureau to crack down on such financial sleaze. It wisely designed the CFPB as strong agency with built-in independence from political pressures and big-bucks lobbying.
Dodd, Frank reunite to protest CFPB leadership change
November 30, American Banker
While most lawyers have declared the leadership battle at the Consumer Financial Protection Bureau all but over, former lawmakers Barney Frank and Chris Dodd teamed up again Thursday to make a last-minute protest to the Trump administration’s recent installation of an acting director at the agency.
New Mexico moving forward to rein in storefront lending marketplace
November 30, Artesia Press
New Mexico is moving forward with an overhaul of the storefront lending marketplace that will cap interest rates at an annual 175 percent starting Jan. 1, while state regulators said Wednesday they will need several more months to write companion regulations that bolster consumer protections and enforcement. The state currently places no limit on interest charges for short-term loans that cater to borrowers primarily of low incomes, who may use personal automobile titles or future tax returns as collateral.
More Coverage:
Santa Fe News | State lagging in effort to implement payday lending law
La Cruces Sun-News | New Mexico moves to rein in predatory lending operations
Payday Lenders Continue Attack on Consumer Protections
November 29, Pasadena Journal
“If at first you don’t succeed, try, try again” is a well-known adage. In recent weeks, it seems that phrase could also be an apt description of the unrelenting efforts of predatory payday lenders to sell their wares.
Dana Milbank: Coup at CFPB is Trump’s swampiest move yet
November 29, The Salt Lake Tribune
Washington- American criminal law is based on the cherished notion of habeas corpus, Latin for “you shall have the body.” President Trump’s hostile takeover of the Consumer Financial Protection Bureau, by contrast, relies on the rather less cherished legal principle of habeas cuppedia, Latin for “you shall have the pastries.”
More Coverage:
Richmond Times Dispatch | The Color of Money: Will consumer watchdog become a lapdog for the financial industry?
Philadelphia Inquirer | How Trump takeover of consumer agency will let the loan sharks loose | Editorial
A Vision for Financial Justice in New York
November 28, New Economy Project
While we fight efforts to legalize predatory payday lending in NY, momentum is building in Congress to pass a dangerous industry bill that would allow payday lenders, debt collectors, and others to evade NY’s strong consumer protection laws.
Would Trump’s CFPB Pick Mulvaney Back Consumers Or Payday Lenders?
November 28, International Business Times
A federal judge denied a request for an emergency restraining order from Consumer Financial Protection Bureau (CFPB) deputy director Leandra English on Monday. The order would have kept Mick Mulvaney from serving as the active director of the CFPB. Judge Timothy Kelly made the ruling, just two months after joining the federal bench as an appointee of President Donald Trump.
The CFPB Has Been Great for Consumers. So of Course Trump Wants to Gut It
November 28, New Republic
For the civil servants at the sole financial regulator devoted to protecting consumers, Monday morning wasn’t just a dreary return to work after a holiday break. It also occasioned an awkward dance between two competing bosses who both claim to be in charge.
Payday Lenders Try Legislative Run Around State Laws
November 27, Electronic Urban Report
Across the country, 15 states as well as in the District of Columbia, with varying geographies, economies and demographics have enacted strong rate cap limits. In each locale, these actions were taken to curb the harmful consequences of payday lenders’ 300 percent or higher interest rate loans. When voters or legislatures approve rate caps, these lenders seek loopholes to evade state requirements. Changing products from payday to car title-loans is one way. Others pose as “loan brokers” or “mortgage lenders” to avoid regulation of payday lending. Even at the federal level and on the heels of a still-new rule by the Consumer Financial Protection Bureau (CFPB), payday lenders and their supporters are now pressing for legislation to continue and expand triple-digit lending on small-dollar loans.
Trump Once Again Rises to Wall Street’s Defense
November 27, Washington Post
Among the many reasons that Donald Trump gave for his appreciation of WikiLeaks publishing material stolen from Hillary Clinton’s campaign chairman was that it exposed what he said were her hidden allegiances. About a month before the 2016 election, he praised the release of transcripts of speeches Clinton gave at Goldman Sachs — transcripts were stolen by hackers that the government believes were connected to the Russian government.
White House Memo Justifying CFPB Takeover Was Written by Payday Lender Attorney
November 27, The Intercept
THE LAWYER WHO wrote the Office of Legal Counsel memo supporting the Trump administration’s viewpoint that the president can appoint Mick Mulvaney as acting director of the Consumer Financial Protection Bureau represented a payday lender in front of the CFPB last year. Steven A. Engel wrote the memo for OLC, which has been criticized by academics for seeking a conclusion and working backward to justify it. “Let’s be honest, this is an argument where you get the answer, and then you go to the other side of the equation,” said former Rep. Barney Frank, D-Mass., a lead author of the Dodd-Frank Act, which created the CFPB. Engel was confirmed as an assistant attorney general earlier this month by a voice vote in the Senate.
Payday lenders continue siege on consumer protections
November 27, The Philadelphia Tribune
“If at first you don’t succeed, try, try again” is a well-known adage. In recent weeks, it seems that phrase could also be an apt description of the unrelenting efforts of predatory payday lenders to sell their wares.
Federal jury finds Main Line payday lender Hallinan guilty of racketeering conspiracy
November 27, The Philadelphia Inquirer
A former Main Line investment banker known as the “godfather of payday lending” was found guilty of racketeering conspiracy charges Monday by federal jurors, whose verdict cast doubt on the legality of business tactics that have enabled the multibillion-dollar industry for years.
More Coverage: The Morning Call, Tredyffrin Patch
Payday lending pioneer convicted in U.S. of racketeering scheme
November 27, Reuters
A Pennsylvania man considered a pioneer in the payday lending industry was found guilty on Monday of engaging in a racketeering scheme that helped fund businesses that generated $688 million from short-term loans to hundreds of thousands of people.
Payday Loan Regulations Will Be Up For More Discussion in Jefferson City
November 26, KBIA
There will be another attempt to pass a payday loan bill during next year’s legislative session in Jefferson City. State Rep. Charlie Davis, R-Webb City, is planning to refile a proposal he submitted earlier this year but did NOT receive a hearing. It would place limits on how often a payday loan can be renewed and how much money a person is allowed to take out at one time.
Trump Just Names Someone Who Hates the Consumer Financial Protection Bureau to Lead it
November 26, Tameans
The White House and the Consumer Financial Protection Bureau were locked in a very public showdown on Friday night over who will run the federal consumer finance watchdog, with each handpicking their own successor to lead the agency — and no one quite knowing who’s going to be in charge come Monday morning when everyone turns up for work.
High interest payday loans could be coming to North Carolina
November 22, The Charlotte Post
The “Protecting Consumers’ Access to Credit Act,” introduced by U.S. Rep. Patrick McHenry, would authorize non-banking entities to partner with a national bank and charge up to triple-digit rates to borrowers.
Legislative priorities package wins approval from City Council
November 22, Omaha World-Herald
The Omaha City Council has thrown its support behind a proposal that would allow police officers to return young children accused of crimes to their parents.
Op-Ed: Payday Lenders Want to Charge Triple-digit Interest on Your Loans. The U.S. Congress You Elected Wants to Help Them.
November 22, Black Press USA
“If at first you don’t succeed, try, try again” is a well-known adage. In recent weeks, it seems that phrase could also be an apt description of the unrelenting efforts of predatory payday lenders to sell their wares.
Omaha City Council votes to support legislative bill on payday lending reform
November 21, KETV
State Senator Tony Vargas is sponsoring the bill, seeking to extend pay back times on these cash advance loans and lower fees to make them more comparable with a consumer’s income.
Guest view: Richard Cordray’s CFPB has done its job well
November 20, The Columbus Parent
President Donald Trump will soon get a chance to remake the Consumer Financial Protection Bureau, one of the signature creations of the 2010 Dodd-Frank financial reform law. The current director, Richard Cordray, has just announced his intention to step down, likely to run for governor of Ohio.
Watch Your Wallet: High Interest Loans Could Be Coming to NC
November 20, Public News Service
The “Protecting Consumers’ Access to Credit Act,” introduced by Rep. Patrick McHenry, would authorize non-banking entities to partner with a national bank and charge up to triple-digit rates to borrowers. Kelly Tornow, director of North Carolina policy at the Center for Responsible Lending, explained.
Federal jury convicts operator of payday lenders sued by CFPB and FTC
November 20, The National Law Review
Richard Moseley Sr., the operator of a group of interrelated payday lenders, was convicted by a federal jury on all criminal counts in an indictment filed by the Department of Justice, including violating the Racketeer Influenced and Corrupt Organizations Act (RICO) and the Truth in Lending Act (TILA). The criminal case is reported to have resulted from a referral to the DOJ by the CFPB. The conviction is part of an aggressive attack by the DOJ, CFPB, and FTC on high-rate loan programs.
Is progress being made on Ferguson Commission’s payday loan recommendations?
November 20, KBIA
The recommendations of the Ferguson Commission are being touted as a potential roadmap to move forward in the St. Louis region after this year’s protests stemming from the not guilty verdict in the murder trial of a former St. Louis Metropolitan Police Officer. Some of the proposals deal with predatory lending, which often traps low-income earners with very high-interest loans.
Consumer protection bureau is a crucial defense for citizens
November 18, The Dallas Morning News
Richard Cordray has been a loyal defender of the average American family as director of the Consumer Finance Protection Bureau. Recently, he announced his intention to step down by the end of this month. We are sad to see him go, but hopeful that his legacy of important successes in ensuring fairness in our financial markets will live on in his replacement. Our churches, families and local economies depend on it.
Richard Cordray’s CFPB has done its job well
November 17, Standard-Examiner
President Donald Trump will soon get a chance to remake the Consumer Financial Protection Bureau, one of the signature creations of the 2010 Dodd-Frank financial reform law. The current director, Richard Cordray, has just announced his intention to step down.
Reposts: Watertown Daily Times
Consumers lose
November 17, The Times-Tribune
American consumers lost a much-needed champion this week when Richard Cordray announced that he will resign as head of the Consumer Financial Protection Bureau.
Michelle Singletary: Will consumer watchdog become lapdog for financial industry?
November 17, The Telegram & Gazette
Richard Cordray, the director of the Consumer Financial Protection Bureau, announced last week that he’s leaving by the end of the month. Cordray’s departure gives President Trump an opportunity to appoint a new leader, and I’m concerned that this will derail the watchdog agency’s consumer-first mission.
350 Percent Interest Rate? Senators Bankrolled By Payday Lenders Can Live With That
November 17, International Business Times
A Democratic senator is leading the way to allow payday lenders to escape basic consumer protections. In a rare bipartisan effort in July, Sen. Mark Warner, a former venture capital executive representing Virginia, introduced the Protecting Consumers’ Access to Credit Act of 2017 (S.1642) with three cosponsors: two Republicans and one Democrat. The bill would allow lenders to ignore state interest-rate caps by partnering with a national bank. Most states have interest rate caps of 36 percent, but 15 states have none at all, and the bill could mean that millions of Americans would face rates of 350 percent or more.
The controversy around Mark Warner’s payday lending bill, explained
November 17, The Week
Payday lending is not something you’d think a major Democratic politician would want to boost. But Sen. Mark Warner (D-Va.) has gotten himself into some hot water over a bill that critics say would do exactly that.