Here come the payday lenders | Arkansas Blog

Monday, February 5, 2018

Here come the payday lenders

Posted By on Mon, Feb 5, 2018 at 7:37 AM

click to enlarge FIT FOR A BLOODSUCKER: Payday lenders will gather at Donald Trump's Florida golf resort this spring/ - GETTY IMAGES
  • Getty images
  • FIT FOR A BLOODSUCKER: Payday lenders will gather at Donald Trump's Florida golf resort this spring/

The Trump administration's aim to destroy the Consumer Financial Protection Bureau is seen here as good news for the bloodsuckers of the payday lending industry, which plans a big April gathering at, where else, Donald Trump's Florida golfing resort. The room charges should be commensurate with an industry that hits consumers with 300 percent interest rates.

Gone is a tough advocate for consumers, in for the Trump White House is Mick Mulvaney.

“I think now we’re in a period that is relatively passive,” said Dennis Shaul, the chief executive of the Community Financial Services Association of America, the primary lobbying group for payday lenders. “I think it is advisable for us to largely draw a curtain on the past and try to go forward.”

Two weeks ago, Mr. Mulvaney put the brakes on a contentious rule, ushered in by Mr. Cordray, that was set to impose tight restrictions on short-term payday loans. He ended a case that the bureau initiated last year against a group of payday lenders in Kansas accused of charging interest rates of nearly 1,000 percent. Last week, Mr. Mulvaney scrapped an investigation into the marketing and lending practices of World Acceptance Corporation, a lender based in South Carolina that donated $4,500 to Mr. Mulvaney’s previous congressional campaigns through its political action committee.

According to the Center for Responsive Politics, payday lenders have contributed more than $13 million to members of Congress since 2010, with the majority of that money going to Republicans who have made it a priority to roll back the financial regulations put in place by President Barack Obama after the financial crisis. That includes Mr. Mulvaney, who received nearly $63,000 for his campaigns from payday lending groups.

This will be interesting to watch in Arkansas. The previous attorney general, Dustin McDaniel, made routing the payday lenders a key part of his agenda. Republican Attorney General Leslie Rutledge stood silent as they tried to resume doing business in the state She sees the CFPB and other government regulation (think clean air and water, minority rights, women's contraceptive rights) as executive branch overreach.

Talk about reach. Watch these guys reach into poor people's pockets.

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