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Payday-lending industry sues to block Obama administration-era rule
Source: Washington Post
Payday-lending industry sues to block Obama administration-era rule
By Renae Merle April 9 at 6:34 PM
The payday-lending industry sued the Consumer Financial Protection Bureau on Monday in an attempt to block an agency rule the industry says will destroy it.
The regulation, which was finalized under the Obama administration, will radically change how payday lenders operate by requiring firms to verify that borrowers can afford the debt before giving them the money and capping the number of times someone can take out successive loans.
It is “draconian” and would “virtually eliminate” the payday-lending industry, according to the lawsuit filed by the Community Financial Services Association of America (CFSA), which was filed in the U.S. District Court for the Western District of Texas. The rule “was motivated by a deeply paternalistic view that consumers cannot be trusted with the freedom to make their own financial decisions.”
The rule was already under assault. Republicans in the House and Senate have introduced legislation to block its implementation, and Mick Mulvaney, appointed by President Trump to temporarily lead the agency, has said he is reviewing the regulation.
But the payday-lending industry is moving even more aggressively to block its implementation. ...
-snip-
By Renae Merle April 9 at 6:34 PM
The payday-lending industry sued the Consumer Financial Protection Bureau on Monday in an attempt to block an agency rule the industry says will destroy it.
The regulation, which was finalized under the Obama administration, will radically change how payday lenders operate by requiring firms to verify that borrowers can afford the debt before giving them the money and capping the number of times someone can take out successive loans.
It is “draconian” and would “virtually eliminate” the payday-lending industry, according to the lawsuit filed by the Community Financial Services Association of America (CFSA), which was filed in the U.S. District Court for the Western District of Texas. The rule “was motivated by a deeply paternalistic view that consumers cannot be trusted with the freedom to make their own financial decisions.”
The rule was already under assault. Republicans in the House and Senate have introduced legislation to block its implementation, and Mick Mulvaney, appointed by President Trump to temporarily lead the agency, has said he is reviewing the regulation.
But the payday-lending industry is moving even more aggressively to block its implementation. ...
-snip-
Read more: https://www.washingtonpost.com/news/business/wp/2018/04/09/payday-lending-industry-sues-to-block-obama-administration-era-rule/
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