BREAKING NEWS ABC News: President Trump to pick Amy Coney Barrett for Supreme Court seat Full Story
STREAMING NOW: Watch Now

Democrats push CFPB's Mick Mulvaney on payday lending

Three Senate Democrats are demanding the head of a consumer watchdog bureau to explain why he plans to weaken protect...

Posted: Feb 23, 2018 9:39 PM
Updated: Feb 23, 2018 9:39 PM

Three Senate Democrats are demanding the head of a consumer watchdog bureau to explain why he plans to weaken protections that guard against payday lenders.

Senators Elizabeth Warren, Jeff Merkley and Richard Blumenthal in a letter Friday rebuked Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, for failing to explain recent changes at the agency, including delaying rules to rein in payday loans and dropping lawsuits against payday lenders.

"You have failed to provide any clarity on the rationale for your actions to harm consumers," the senators wrote in response to a Feb. 15 letter by Mulvaney obtained by CNNMoney. "You failed to answer a single one of our questions."

Related: Trump official: Regulators don't have a 'blank check'

In that letter, Mulvaney refuted the Senators' claims that his actions at the agency were not based on a "careful examination of law and facts." The response was just two paragraphs long.

"I never thought to consider, for instance, whether your vote against repealing the bureau's arbitration rule was influenced by campaign donations you may have received from trial lawyers or other parties who stood to gain financially from the rule," Mulvaney wrote in his letter.

Since his appointment, Mulvaney has pressed ahead in restructuring an agency he believes has too much power and has often acted too aggressively.

The bureau was created by the 2010 financial reform law known as Dodd-Frank. Its mission was to protect American consumers from predatory lenders and bullying debt collectors. But it has reversed course under Mulvaney, the interim director appointed by Trump last November.

Related: Democrats to Trump's CFPB chief: Who's looking out for consumers?

In January, the bureau delayed rules to rein in payday lenders that cash-strapped Americans often use to obtain small amounts of money - typically between $200 and $1,000. Usually the money needs to be paid back in full when a borrower receives his or her next paycheck, and such loans often come with exorbitantly high interest rates.

Mulvaney has publicly disputed he is killing a rule that protects consumers.

"I think it's inaccurate to say that we've wiped out the payday rule," Mulvaney said at a recent hearing on the president's budget earlier this month. "We've simply given notice that we're going to take additional comments on additional rule making."

The CFPB has also dropped lawsuits against four payday lenders.

The agency, under former CFPB Director Richard Cordray, had accused lenders of deceiving consumers and unlawfully withdrawing from their bank accounts to pay debts they didn't legally owe. Two of the firms, Golden Valley and Silver Cloud Financial, have offered online loans of $300 and $1,200 with interest rates up to 950%.

Huntsville
Overcast
69° wxIcon
Hi: 72° Lo: 62°
Feels Like: 69°
Florence
Overcast
71° wxIcon
Hi: 74° Lo: 62°
Feels Like: 71°
Fayetteville
Overcast
70° wxIcon
Hi: 73° Lo: 60°
Feels Like: 70°
Decatur
Overcast
70° wxIcon
Hi: 72° Lo: 60°
Feels Like: 70°
Scottsboro
Overcast
72° wxIcon
Hi: 73° Lo: 61°
Feels Like: 72°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 134231

Reported Deaths: 2357
CountyConfirmedDeaths
Jefferson19441349
Mobile13271291
Montgomery8778179
Madison775480
Tuscaloosa7496119
Shelby584951
Lee582961
Baldwin516550
Marshall390944
Calhoun346641
Etowah342047
Morgan325428
Houston278123
Elmore263247
DeKalb239120
Walker228483
St. Clair227837
Talladega212728
Limestone206120
Cullman188519
Dallas177426
Franklin175529
Russell17442
Autauga173825
Lauderdale168233
Colbert163626
Blount159415
Escambia158425
Jackson154611
Chilton153531
Dale135444
Covington134427
Coffee13078
Pike11879
Chambers115142
Tallapoosa114685
Clarke107717
Marion95729
Butler91339
Barbour8577
Winston73712
Marengo70820
Lowndes65327
Pickens65114
Bibb64210
Randolph63713
Hale62828
Lawrence60922
Geneva5995
Bullock59814
Cherokee59115
Monroe5818
Clay5707
Washington55613
Perry5407
Conecuh53111
Crenshaw53132
Wilcox53111
Henry4865
Macon48020
Fayette4438
Sumter43419
Lamar3632
Choctaw34612
Cleburne3396
Greene30315
Coosa1673
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 187690

Reported Deaths: 2312
CountyConfirmedDeaths
Shelby30460452
Davidson26252298
Hamilton928791
Knox918175
Rutherford915088
Williamson516536
Sumner475896
Wilson341844
Putnam320139
Montgomery302244
Out of TN296825
Unassigned29145
Bradley289317
Madison280061
Sevier257015
Blount247723
Maury230923
Washington223935
Robertson219035
Sullivan212133
Hamblen188525
Tipton178118
Trousdale16517
Gibson160922
Hardeman154826
Wayne14905
Bedford132017
Dyer131813
Dickson123515
Cumberland117518
Fayette117418
Coffee116613
Weakley115719
Anderson115312
Henderson115322
Carter114728
Obion11389
Loudon11356
Greene112943
McMinn110025
Jefferson109714
Macon103520
Warren10267
Monroe102217
Lawrence101211
Hardin100516
Lauderdale95915
Haywood95418
Franklin9518
Lake9142
Roane8724
Carroll85819
Bledsoe8494
McNairy84218
White8139
Cheatham80610
Rhea79812
Hawkins78316
Cocke7419
Marshall7415
Overton7135
Smith69810
Johnson6752
Henry6139
Chester60910
Lincoln6031
Giles58017
Hickman5585
DeKalb55213
Crockett52919
Marion5187
Decatur5037
Fentress4713
Claiborne4405
Campbell4314
Polk38210
Grainger3633
Union3471
Benton3349
Jackson3175
Morgan3113
Unicoi2831
Cannon2800
Grundy2685
Humphreys2443
Sequatchie2293
Meigs2233
Clay2205
Houston2083
Scott2072
Stewart1902
Lewis1851
Moore1641
Van Buren1600
Perry1490
Pickett1102
Hancock1063

Community Events