January 31, 2018

American Banker: Warren, Waters ask Mulvaney about CFPB change of heart on payday

WASHINGTON - Top Democrats in the House and Senate sent a letter to Mick Mulvaney on Wednesday questioning his decision to delay the implementation of the Consumer Financial Protection Bureau's payday loan rule.

"We have a number of questions about the sudden reversal of the CFPB's positions" including the payday rule, a case against four installment lenders and an investigation into a payday lender, said the letter, which was led by Sen. Elizabeth Warren of Massachusetts and the top Democrat on the House Financial Services Committee, Rep. Maxine Waters of California, and signed by four other Democrats.

Under Mulvaney's leadership, the CFPB announced on Jan. 16 that it was reconsidering the payday loan rule. Two days later, it dismissed a case against the installment lenders and on Jan. 22 dropped an investigation into World Acceptance Corp.

"The agency barely explained its payday rule reversal," said the letter, which was also addressed to Leandra English, who was former CPFB Director Richard Cordray's chief of staff and tapped to be the acting director before the position was given to Mulvaney. A case challenging Mulvaney's status as head of the agency is still pending.

Read the full article on the American Banker website here.

By:  Ian McKendry
Source: American Banker