16, announcement from the Consumer Financial Protection Bureau indicates it will ease the regulation passed in October despite a massive lobbying campaign by the industry.
After twice failing to get a federal court to void President Trump's appointment of Mick Mulvaney to serve as acting director, English has filed an appeal with the U.S. District Court for the District of Columbia, with the request that the decision be expedited. "That being said, we're going to run it differently than the previous administration".
Lender groups have fought against the rule they slam as a prime example of over-stepping by the CFPB, the consumer agency created by financial reform laws passed during the administration of former President Barack Obama.
The repeal debate focuses on a 2017 rule that would require payday lenders to determine, before granting a loan, whether a borrower could afford to make full repayment with interest within 30 days.
The bureau, which came under control of the Trump administration late past year, said in a statement Tuesday that it plans to take a second look at the payday lending rules.
On Wednesday, Mulvaney issued a statement calling for the public to submit feedback in coming weeks and suggest ways to improve outcomes to ensure the bureau is "fulfilling its proper and appropriate functions".
The escalating debate comes as the federal watchdog, whose leadership shifted from an Obama administration appointee to a Trump administration pick late a year ago, said Tuesday that it would take a new look at the rule.
"Millions of American consumers use small-dollar loans to manage budget shortfalls or unexpected expenses", he said.
Trump's appointment of Mulvaney, an outspoken critic of the bureau, was decried by Democrats and consumer advocates, who saw it as a signal Republicans planned to scale back the bureau's operations. "Mulvaney seems to be planning to undo critically important rules to protect people against the most predatory lenders who trap people in a cycle of debt". "The rule covers payday, vehicle title, and certain high-cost installment loans".
Warren said it's clear Mulvaney wants to dismantle the CFPB. And while Mulvaney did say he wouldn't "light the agency on fire", he said absolutely nothing about completely reshaping it to reflect the Trump administration's deregulatory, Wall Street friendly agenda.
"The (Payday) rule was finalized only after a coalition of over 750 civil rights, consumer, labor, faith, veterans, seniors and community organizations from all 50 states energized a years-long effort to push the Consumer Bureau for these protections from predatory payday and auto title lending". The Environmental Protection Agency, under Scott Pruitt, has reshuffled its priorities away from issues such as climate change.