Rutledge again attacks consumer protection agency | Arkansas Blog

Monday, August 7, 2017

Rutledge again attacks consumer protection agency

Posted By on Mon, Aug 7, 2017 at 4:42 PM

PAYDAY LENDER: Attorney General Rutledge wants to help them avoid federal regulation. She wouldn't stop this one, though a new state law finally did..
  • PAYDAY LENDER: Attorney General Rutledge wants to help them avoid federal regulation. She wouldn't stop this one, though a new state law finally did..
Attorney General Leslie Rutledge continues her push with other Republican state legal officers to reduce the powers of the Consumer Financial Protection Bureau.

I'll give you her full release, but here's a translation:

She says the rules are bad for lenders, including those making payday loans. Rutledge is on the side of payday lenders and not consumers, in other words. But we knew that. She refused to act when a renegade payday lender reopened for business in Arkansas. She opposes class action lawsuits under consumer protection law, preferring mediation agreements that favor lenders. The likelihood of the attorney general using her consumer protection power for class action lawsuits on behalf of people damaged by mortgage, automobile, payday and other lenders would appear to be almost nil.

Example: CFPB explains here its effort to end the "debt traps" of payday loans that sometimes carry effective interest rates of 300 percent and victimize people who'll never be able to pay off the loans. Rutledge deems this sort of rule-making bad for business. Consumers?  Rutledge doesn't fight for them when it comes to payday loans, though Sen. Jason Rapert rose to their defense and succeeded where Rutledge wouldn't even try.

Her statement:

Arkansas Attorney General Leslie Rutledge has written to the Director of the Office of Management and Budget (OMB) Mick Mulvaney urging him to direct the Office of Information and Regulatory Affairs (OIRA) to conduct a cost-benefit analysis of all recent and pending Consumer Financial Protection Bureau (CFPB) rules.

“Many of the rules and regulations that have been promulgated by the CFPB since its creation have pre-empted state law and made it harder for business owners to grow jobs,” said Attorney General Rutledge. “The OMB should ensure that regulations are consistent with applicable law, properly consider and balance the costs and benefits and minimize the unnecessary burdens. I urge Director Mulvaney to conduct this review as soon as possible.”

Rutledge, who met with CFPB Director Richard Cordray in Little Rock last summer, has previously expressed concern with the CFPB’s new federal standards for – and limitations on – credit lines, installment loans, deposit advances, automobile-title secured loans and payday loans, as well as the Bureau’s Arbitration rule. In March, Rutledge filed an amicus brief with the U.S. Court of Appeals for the D.C. Circuit arguing that the CFPB is unconstitutional and that Director Cordray should be subject to political appointment.

In the letter to Director Mulvaney, Rutledge notes that a 1993 executive order requires that “significant regulatory actions” be submitted for review to OIRA for an analysis on the cost-benefit analysis and risk assessment. “Significant actions” include an annual effect on the economy of $100 million or more, interference with an action or planned action of another agency, materially altering the budgetary impact of entitlements, grants user fees or other loan programs or raising legal or policy issues arising out of legal mandates.

Led by the South Carolina Attorney General, Rutledge is joined on the letter by attorneys general from Alabama, Arizona, Georgia, Indiana, Kansas, Louisiana, Michigan, Missouri, Nevada, Tennessee, Texas, Utah and West Virginia.

Tags: , , ,


Favorite

Comments (13)

Showing 1-13 of 13

Add a comment

 
Subscribe to this thread:
Showing 1-13 of 13

Add a comment

More by Max Brantley

  • Saturday's open line, plus some political notes

    The Saturday open line, with some political odds and ends:
    • Dec 15, 2018
  • Obamacare's ruin: Where are the boastful press releases from Arkansas Republicans?

    Silence so far from Republican politicians such as Leslie Rutledge on achievement of their long-stated dream, death to the Affordable Care Act. Could that be because most people now understand what a good thing President Obama did with its passage? Update: Rutledge applauds and offers empty promise of coverage.
    • Dec 15, 2018
  • Entergy demolishes old power plant near Stamps

    Entergy, the state's largest electric utility, yesterday used explosives to destroy the major parts of its closed Couch Plant near Stamps, which dated to 1943 and was designed to burn fuel oil or gas at two generating units. Named for power company founder Harvey Couch, it's been out of commission since 2013.
    • Dec 15, 2018
  • More »

Readers also liked…

  • Among the last words from Kenneth Williams: 'Finger Lickin' Good Fried Chicken'

    What's purported to be a final-words essay from condemned prisoner Kenneth Williams was distributed today by Deborah Robinson, a freelance journalist in Arkansas.  He reflects on his execution, his victims, reactions of inmates and big servings of fried chicken, which he says are given to all inmates on execution days.
    • Apr 27, 2017
  • Trump tariffs hit farmers hard

    Well, the trade war has begun and the early returns for farmers are not good — sharp reductions in the prices for soybeans and corn. You may have heard that Arkansas, which overwhelmingly supported Donald Trump, has some agricultural interests, particularly in soybeans.
    • Jul 6, 2018
  • Police identify two women found fatally shot on Chicot Road

    Little Rock police have identified two women found dead of gunshot wounds in an SUV parked next to a vacant trailer in a mobile home park at 11500 Chicot Road.
    • May 16, 2017

Slideshows

  • Arkansas vs Ole Miss at War Memorial stadium in Little Rock, Saturday, Oct. 13, 2018. After leading for much of the game, Arkansas lost 37-33 when Ole Miss scored the game winning Touchdown with less that 2 minutes left. 
  • Margaret Clark Adventure Park
    New sculptures, preschoolers play area dedicated in Riverfront Park in Little Rock.

Most Recent Comments

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation