Consumer bureau proposes scrapping borrower safeguards from payday loan rule

[Eugene]

Source: The Hill

BY SYLVAN LANE - 02/06/19 01:02 PM EST

The Consumer Financial Protection Bureau (CFPB) on Wednesday proposed striking certain borrower safeguards from a 2017 regulation on short-term, high-interest loans.

The bureau on Wednesday kicked off a proposal to loosen the bureau’s rule on “payday” loans, a measure meant to protect vulnerable consumers from bottomless debt.

The proposed rewrite would eliminate underwriting provisions under the rule meant to ensure recipients of payday loans will have the ability to repay them despite high interest rates.

Senior CFPB officials said Wednesday that the bureau based its justification for the repayment provisions on weak and insufficient evidence.

-snip-


Read more: https://thehill.com/policy/finance/428760-consumer-bureau-proposes-scrapping-borrower-safeguards-from-payday-loan-rule

[Stand and Fight]

1. Corruption. This was one of the main reason the damn CFPB was created.

And now the bastards want to remove the protections? No.

[forgotmylogin]

2. That part of the SOTU

where he said "We have removed the most regulations from businesses..." like it was a good thing. Yeah it's great for business if factories can save money and just dump their toxic waste sludge in the river, but it's not something the citizenry should be happy about that should be bragged as an accomplishment in a speech. We are expendable chum to the oligarchy.

[Traildogbob]

6. Pesky regs

I live in a unique county in WNC that has no water entering from an outside source. 19 peaks over 6,000 feet, most east of the Mississippi. But, our city water supply is a protected resovoir and still susceptible to many natural pathgens. Just got a mandated notice yesterday by a watchdog group that required the town to issues a warning statement, that ZERO required monthly testing has happened in the last year. ZERO. Along with a list of toxic contaminates that we may have been exposed to. The local knuckle dragging trumpanzees are outraged.........at Obama. Not Flint like possibilities but, just more republican no oversight, fuck science policies. People have came out sighting illnesses for them and pets. MAGA.

[Yavin4]

3. Time to pay back the campaign donors for 2018 and get them ready for 2020. n/t

[riversedge]

4. Mulvaney announced in January 2018, shortly after he replaced Cordray, that the bureau would propose

Dems are trying to help.

...................................

Rebecca Borné, senior policy counsel at the Center for Responsible Lending, said the CFPB “is siding with the payday loan sharks instead of the American people.”

“We urge Director Kraninger to reconsider, as her current plan will keep families trapped in predatory, unaffordable debt."

Republicans and financial services industry advocates blasted the rule as a drastic abuse of the CFPB’s authority that would choke off crucial credit products for consumers with limited options.

Former Acting CFPB Director Mick Mulvaney announced in January 2018, shortly after he replaced Cordray, that the bureau would propose a drastic rollback of the payday rule. The announcement delighted the rule’s critics and set the state for a heated battle over its future.

GOP lawmakers unsuccessfully attempted to repeal the payday rule in 2018, and the CFPB is currently facing a lawsuit in the U.S. District Court for the Western District of Texas.

The judge in the case has delayed the deadline to comply with the rule until the CFPB finishes the rewriting process

[sakabatou]

5. Republicans would be delighted to see citizens be defrauded until they drown

[Lonestarblue]

7. I would like to see laws against usury.

Poor people are victimized over and over. They make too little to afford a bank account and then have to pay fees just to cash a check. Any unexpected expense can send them into literally a lifetime of debt to unscrupulous payday lenders.

I wish some charitable foundation (perhaps the Gates Foundation or Warren Buffet’s) would start a nonprofit bank catering to the needs of poor people and eventually put payday lenders out of business. For example, if a nonprofit still charged a fee, but less than the payday lender’s charge of up to $30 per $100 of the check, and put that money in an interest-bearing savings account for the worker, when a financial emergency arose, the person would have money to cover it. Having a real savings account might also encourage people to save whenever they could.

I think it was Kamala Harris who proposed last year that some post offices add a similar capability. It’s an idea that needs to be considered.

[appalachiablue]

11. Candidates advocating Post Office banking is a good idea.

I think the PO used to handle financial services like bonds, checking and savings accounts in the 1950s and onward.

[Firestorm49]

8. The real humor is the name itself - CONSUMER Financial PROTECTION Bureau.

Perhaps it should be changed to Board Of Directors Protection Bureau???

[PeeJ52]

9. Then why get rid of them if they aren't even being used except maybe once or twice.

It's those one or two times that they are needed. Just ask Justice Roberts about the reason voting rights weren't being taken away in the south was because they had to be reviewed, not because there wasn't discrimination any more. Take away the review, and bam... there's the discrimination again...

[meow2u3]

10. The Trump regime might as well rename the CFPB to reflect what they're really doing

The Corporate Loanshark Protection Bureau.

[El Mimbreno]

12. And since usury was mentioned...

let's not forget "instant tax refunds" or refund anticipation loans. Add up all the fees and the APR runs to triple digits.
Some years ago I had a franchised tax prep office. Franchisees were expected to offer free prep, then steer clients into costly RALs.
Instead, I encouraged clients to go down the street to a bank, open an account, and have their refund direct deposited in 5 to 10 days. Just one of the issues that led to my franchise being revoked.

[dalton99a]

13. Kick