Despite its name “Consumer Financial Protection Bureau”, this agency seems interested in protecting industry rather than fulfilling its mission. CFPB recently announced their proposal to gut protections that helped stave payday loan sharks off hard-working Americans.
CFPB is supposed to protect people from risky, predatory, and harmful financial products and services; by creating rules and keeping bad actors accountable for breaking those rules. And they have been. Senator Tester and CFPB held Wells Fargo accountable for their recent credit card scandal.
The Bureau created the payday rule based on 5 years of research, data collection, field hearings, and public comments, to regulate industry and protect people nationally from debt-trap loans. Within it, an “ability-to-repay” standard – requiring lenders check that borrowers can repay loans while still paying basic living expenses like food and housing.
Now, without any additional research, CFPB is repealing the rule. Nothing has changed except CFPB leadership, which showcases how powerful banking lobbyists are.
Payday industry proposes that its an unreasonable rule to follow, even though banks and credit unions already check borrowers ability to pay before they underwrite loans. Sounds like industry is just fighting to keep stealing money from those struggling to make ends meet.
— John Ross Bleacher, Red Lodge, Montana