February of this year and Mick Mulvaney already started to dismantle the CFPB by stripping the agency’s fair-lending office of enforcement powers reducing oversight and penalties for firms that discriminate against borrowers. Enforcement of fair-lending laws is governed by the 2010 financial reform law. Taking away the agency’s enforcement powers creates a vacuum making it unclear as to what happens now. Senator Elizabeth Warren sees Mulvaney’s actions as an attempt to gut the agency’s power in regulating fair lending practices.
Also in February, Mick Mulvaney scrapped an investigation into payday lender Golden Valley Lending . Golden Valley Lending contributed to Mulvaney’s congressional campaign, according to NPR. Michigan resident 27-year-old Julie Bonenfant took out a $900 loan from Golden Valley. In less than 12 months, her scheduled payments will total $3,735. Apparently, 950% interest is ok to Mick Mulvaney.
In March as reported by AP, Janet Matricciani, former CEO of payday lending company World Acceptance, contacted Mick Mulvaney on his personal email account suggesting she be made CFPB director.
“I would love to apply for the position of director of the CFPB. Who better than me in understanding the need to treat consumers respectfully, and honestly, the equal need to offer credit to lower income consumers in order to help them manage their daily lives?
I have in-depth experience of what a CFPB investigation is like, and so I am in an unparalleled position to understand the effect of various CFPB actions on a company, its workforce, its customers, and the industry,”
World Acceptance has been under investigation by the CFPB for three years. Reportedly, it trapped its customers in debt they could not repay and charged higher than normal interest rates than what was disclosed. Even the thought of appointing Ms. Matricciani suggests an abnormal business – government relationship. World Acceptance contributed $thousands to Mick’s congressional campaigns in the past.
In April; Mick Mulvaney lectured the American Bankers Association, the same group “Showdown in Chicago” protested in the Loop a few years back and which I attended. Here is what Mick had to say:
“We had a hierarchy in my office in Congress. If you’re a lobbyist who never gave us money, I didn’t talk to you. If you’re a lobbyist who gave us money, I might talk to you. At the top of the hierarchy were my constituents. If you came from back home and sat in my lobby, I talked to you without exception, regardless of the financial contributions.” Mick received nearly $63,000 from payday lenders for his congressional campaigns.
In May; “Mick Mulvaney will close down the CFPB Student Lending Office, according to a bureau-wide memo written by him. The student loan office at the CFPB has been responsible for returning $750 million in relief to students and for investigating the troublesome student lender Navient. The CFPB sued Navient last year for unfair and abusive practices. If there is one student loan lender I have heard repeated complaints about, it is Navient. The Student Lending Office also investigated and sued for-profit education company Corinthian Colleges.
Denouncing the actions of Mick Mulvaney closing the Student Loan Lending Office, Whitney Barkley-Denney, Senior Policy Counsel with the Center for Responsible Lending had this to say: “Education (of students) alone cannot stop predatory behaviors on the part of for-profit schools and servicers, nor can it help hundreds of thousands of Americans in serious debt because of these practices.” The office will continue to do its work; but, it come under closer scrutiny of Mick Mulvaney who favors business and loan servicers over students.
run75441 @ Angry Bear Blog