Democratic senators attack Mulvaney’s decision to loosen payday loan enforcement

Some 43 Democratic senators are blasting Acting CFPB Director Mick Mulvaney’s backtracking on the agency’s payday lending rule and enforcement.

In a letter, the Democrats, led by Sen. Richard Durbin (D-Ill.), said reconsideration of the payday lending rule and Mulvaney’s loosening of its enforcement are “antithetical to the CFPB’s mission.”

At the same time, Sen. Lindsey Graham (R-S.C.) has introduced a resolution in the Senate to nullify the payday lending rule.

The CFPB issued rules in October to crack down on payday lending that lock borrowers into interest rates and fees that are so high that they have to take out additional loans. The rules were issued by former CFPB Director Richard Cordray, who was appointed by former President Obama.

 

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