The "Party of No Frivolous Lawsuits" plans a frivolous lawsuit against Obama recess appointment

[ProgressiveEconomist]

37. YES, only the biggest losers from

impending rulings by Cordray would have the "standing" and the financial damages necessary to sue. But are they daring enough to expose their outrageous consumer fraud in detail as they would have to in any lawsuit?

We had a good discussion of this point in a recent GD thread (at http://www.democraticunderground.com/1002121504 ):

"IMO, the biggest losers from today's recess appointment to the CFPB are payday lenders who charge poor suckers an average of 400 percent interest on typical loans. Right now, the Feds cannot regulate these loan-sharks. Recent research by respected economists (see the Slate.com story at http://www.slate.com/articles/business/the_dismal_science/2009/07/400_percent_apr_is_that_good.single.html ) found that strong disclosure rules would depress the payday loan business by 10 percent. Rules that capped interest rates at, say, 36 percent, would virtually put payday lenders out of business.

IMO, the more daylight that is shone on the payday lending business, the more and more severe will be restrictions imposed on it. Already, Ohio state legislation and the Military Personnel Act have capped payday lenders' APRs at 28 percent and 36 percent, respectively.

Dozens of other states well might follow Ohio's example should the payday lenders' association sue to deligitimize Cordray's appointment. Payday lenders would have to show in court the numerical extent of their losses due to regulation of their storefront loan-sharking. Just imagine the bad press a lawsuit by the payday lenders' association would generate for the Rs. 'Republican obstruction of the CFPB generated $X million in payday lender profits.' 'Republican Senators S and B (I did not choose these initials randomly) received more than $Z in campaign cash from payday lenders.'

Any payday-lender victory in court on the appointment front would IMO be a Pyrrhic one. A payday lenders' suit over the CFPB appointment would be like the roaches themselves turning on the lights in a filthy kitchen! A no-nonsense cleanup would ensue, and the exterminator would be called!"