Under Trump Appointee Mulvaney, CFPB Seen Helping Payday Lenders: NPR

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Under Trump Appointee Mulvaney, CFPB Seen Helping Payday Lenders: NPR

Under Trump Appointee, Consumer Protection Agency Seen Helping Payday Lenders

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Mick Mulvaney, a former Republican lawmaker and current White House budget chief, was also picked as interim head of the Consumer Financial Protection Bureau. Astrid Riecken/Getty Pictures hide caption

Mick Mulvaney, a former Republican lawmaker and current White House budget chief, was also picked as interim head of the Consumer Financial Protection Bureau.

Astrid Riecken/Getty Pictures

Payday lenders show up to have a powerful friend in Washington.

Former Republican Rep. Mick Mulvaney is the interim head of the Consumer Financial Protection Bureau. He was appointed by President Trump amid an ongoing a power fight for control of the bureau.

Watchdog groups are up in arms because, under Mulvaney, the CFPB has put on hold a rule that would restrict payday lenders and their high-interest-rate loans. The agency has also dropped a lawsuit against online lenders charging 900 percent interest rates. Critics say these moves are payback for campaign contributions to Mulvaney when he was a congressman signifying South Carolina.

Payday lenders say that if you need some money swift, they provide a valuable service. And that is how some customers feel at the Advance America storefront in a little undress mall in Pawtucket, R.I.

One of those customers is auto mechanic Rafael Mercedes, who says he very first came to the branch when he needed some parts to fix his own car. “My car broke down, and I needed money right then and there,” he says.

Rafael Mercedes says he chooses payday loans to credit cards, despite the sky-high interest rates. Chris Arnold/NPR hide caption

Rafael Mercedes says he chooses payday loans to credit cards, despite the sky-high interest rates.

Mercedes says he borrowed $450 and had to pay $45 in interest for the two-week loan. To get the loan, he left a check for the lender to cash the day he got paid by his employer — hence the term payday loans.

Borrowing the same amount of money on a credit card for two weeks wouldn’t cost anything if he paid it back. But Mercedes says he has bad credit and no longer uses credit cards because he had thicker debt problems when he did.

“I’d choose not to get into that big mess again,” he says. “The people here are friendly, and I don’t know, it just works for me.”

And if it means someone like Mercedes can get a needed car repair to get to work when money is taut, what’s the problem?

The Two-Way

Mulvaney Shows Up For Work At Consumer Watchdog Group, As Leadership Feud Deepens

The Two-Way

Consumer Watchdog Proposes Fresh Rules On Payday Lenders

Christopher Peterson, a law professor at the University of Utah, says the problem is that “one payday loan often leads to another payday loan and so on into a debt trap.”

“The average borrower is taking out eight of these loans per year,” he says. “Some are taking out nine, Ten, 15 or more loans per year. These costs can truly add up.”

Some people at the Advance America branch were clearly regular customers. Peterson says that by getting payday loans paycheck after paycheck, you’re paying an annual interest rate of 200 percent to 300 percent — sometimes even higher depending on state regulations. And, he says, lenders taking money directly from people’s checking accounts can trigger overdraft fees and other costs and problems.

Peterson worked for the Defense Department helping to draft regulations under the Military Lending Act, which banned these high-interest payday loans for service members.

“These loans have been found by Congress to be so dangerous that they have been prohibited for the military, and it was George W. Thicket that signed that into law,” he says of the Republican former president.

Peterson was also an adviser to the Consumer Financial Protection Bureau when it crafted its payday loan rule for the rest of the country.

The rule doesn’t go as far as the military version. But it does require lenders to make sure people can afford to pay the loans back. And it was just about to begin being phased into effect this month.

Any single payday loan isn’t so bad, consumer watchdogs say. But many people get stuck taking out loan after loan with annual interest rates of 200 percent to 300 percent or even higher. Chris Arnold/NPR hide caption

Any single payday loan isn’t so bad, consumer watchdogs say. But many people get stuck taking out loan after loan with annual interest rates of 200 percent to 300 percent or even higher.

Mike Calhoun, president of the Center for Responsible Lending, is among consumer watchdogs who are upset that Trump recently chose Mulvaney, a former Republican congressman and current White House budget director, to run the consumer bureau.

Mulvaney once introduced legislation to abolish the bureau and called the CFPB a “sick, sad” joke. He also accepted money from payday lenders.

And now that he is running the agency, the CFPB put this rule on hold, telling it will take steps to reconsider the measure. The CFPB has also dropped a lawsuit against online lenders charging 900 percent interest rates. And it just dropped an investigation into a lender that contributed directly to Mulvaney’s campaign.

“It is shocking,” Calhoun says. “Mulvaney took over $60,000 in campaign cash from the payday lenders when he was in Congress. He is deep in the pocket of the payday lenders and he’s doing everything he can to help them.”

Mulvaney declined requests for an interview. But he has said in the past he doesn’t think campaign contributions present a conflict of interest for him.

Payday lenders, as might be expected, are blessed to see the rule put on hold. Jamie Fulmer, with Advance America, says the rule would be too burdensome to implement for such small-dollar loans. (Many states cap the total amount for a payday loan at $500.) And he says it would cut off loans for his customers who need them.

“This is the classic example of somebody from Washington coming in and telling, ‘Hey, we’re here to help and we’re here to tell you what’s best for you and your family and we’re gonna determine for you,’ ” Fulmer says.

Under Trump Appointee Mulvaney, CFPB Seen Helping Payday Lenders: NPR

Under Trump Appointee, Consumer Protection Agency Seen Helping Payday Lenders

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Mick Mulvaney, a former Republican lawmaker and current White House budget chief, was also picked as interim head of the Consumer Financial Protection Bureau. Astrid Riecken/Getty Pics hide caption

Mick Mulvaney, a former Republican lawmaker and current White House budget chief, was also picked as interim head of the Consumer Financial Protection Bureau.

Astrid Riecken/Getty Photos

Payday lenders show up to have a powerful friend in Washington.

Former Republican Rep. Mick Mulvaney is the interim head of the Consumer Financial Protection Bureau. He was appointed by President Trump amid an ongoing a power fight for control of the bureau.

Watchdog groups are up in arms because, under Mulvaney, the CFPB has put on hold a rule that would restrict payday lenders and their high-interest-rate loans. The agency has also dropped a lawsuit against online lenders charging 900 percent interest rates. Critics say these moves are payback for campaign contributions to Mulvaney when he was a congressman indicating South Carolina.

Payday lenders say that if you need some money rapid, they provide a valuable service. And that is how some customers feel at the Advance America storefront in a little disrobe mall in Pawtucket, R.I.

One of those customers is auto mechanic Rafael Mercedes, who says he very first came to the branch when he needed some parts to fix his own car. “My car broke down, and I needed money right then and there,” he says.

Rafael Mercedes says he chooses payday loans to credit cards, despite the sky-high interest rates. Chris Arnold/NPR hide caption

Rafael Mercedes says he chooses payday loans to credit cards, despite the sky-high interest rates.

Mercedes says he borrowed $450 and had to pay $45 in interest for the two-week loan. To get the loan, he left a check for the lender to cash the day he got paid by his employer — hence the term payday loans.

Borrowing the same amount of money on a credit card for two weeks wouldn’t cost anything if he paid it back. But Mercedes says he has bad credit and no longer uses credit cards because he had fatter debt problems when he did.

“I’d choose not to get into that big mess again,” he says. “The people here are friendly, and I don’t know, it just works for me.”

And if it means someone like Mercedes can get a needed car repair to get to work when money is taut, what’s the problem?

The Two-Way

Mulvaney Shows Up For Work At Consumer Watchdog Group, As Leadership Feud Deepens

The Two-Way

Consumer Watchdog Proposes Fresh Rules On Payday Lenders

Christopher Peterson, a law professor at the University of Utah, says the problem is that “one payday loan often leads to another payday loan and so on into a debt trap.”

“The average borrower is taking out eight of these loans per year,” he says. “Some are taking out nine, Ten, 15 or more loans per year. These costs can indeed add up.”

Some people at the Advance America branch were clearly regular customers. Peterson says that by getting payday loans paycheck after paycheck, you’re paying an annual interest rate of 200 percent to 300 percent — sometimes even higher depending on state regulations. And, he says, lenders taking money directly from people’s checking accounts can trigger overdraft fees and other costs and problems.

Peterson worked for the Defense Department helping to draft regulations under the Military Lending Act, which banned these high-interest payday loans for service members.

“These loans have been found by Congress to be so dangerous that they have been prohibited for the military, and it was George W. Pubic hair that signed that into law,” he says of the Republican former president.

Peterson was also an adviser to the Consumer Financial Protection Bureau when it crafted its payday loan rule for the rest of the country.

The rule doesn’t go as far as the military version. But it does require lenders to make sure people can afford to pay the loans back. And it was just about to commence being phased into effect this month.

Any single payday loan isn’t so bad, consumer watchdogs say. But many people get stuck taking out loan after loan with annual interest rates of 200 percent to 300 percent or even higher. Chris Arnold/NPR hide caption

Any single payday loan isn’t so bad, consumer watchdogs say. But many people get stuck taking out loan after loan with annual interest rates of 200 percent to 300 percent or even higher.

Mike Calhoun, president of the Center for Responsible Lending, is among consumer watchdogs who are upset that Trump recently chose Mulvaney, a former Republican congressman and current White House budget director, to run the consumer bureau.

Mulvaney once introduced legislation to abolish the bureau and called the CFPB a “sick, sad” joke. He also accepted money from payday lenders.

And now that he is running the agency, the CFPB put this rule on hold, telling it will take steps to reconsider the measure. The CFPB has also dropped a lawsuit against online lenders charging 900 percent interest rates. And it just dropped an investigation into a lender that contributed directly to Mulvaney’s campaign.

“It is shocking,” Calhoun says. “Mulvaney took over $60,000 in campaign cash from the payday lenders when he was in Congress. He is deep in the pocket of the payday lenders and he’s doing everything he can to help them.”

Mulvaney declined requests for an interview. But he has said in the past he doesn’t think campaign contributions present a conflict of interest for him.

Payday lenders, as might be expected, are blessed to see the rule put on hold. Jamie Fulmer, with Advance America, says the rule would be too burdensome to implement for such small-dollar loans. (Many states cap the total amount for a payday loan at $500.) And he says it would cut off loans for his customers who need them.

“This is the classic example of somebody from Washington coming in and telling, ‘Hey, we’re here to help and we’re here to tell you what’s best for you and your family and we’re gonna determine for you,’ ” Fulmer says.

Under Trump Appointee Mulvaney, CFPB Seen Helping Payday Lenders: NPR

Under Trump Appointee, Consumer Protection Agency Seen Helping Payday Lenders

  • Facebook
  • Twitter
  • Flipboard
  • Email

Mick Mulvaney, a former Republican lawmaker and current White House budget chief, was also picked as interim head of the Consumer Financial Protection Bureau. Astrid Riecken/Getty Photos hide caption

Mick Mulvaney, a former Republican lawmaker and current White House budget chief, was also picked as interim head of the Consumer Financial Protection Bureau.

Astrid Riecken/Getty Pics

Payday lenders emerge to have a powerful friend in Washington.

Former Republican Rep. Mick Mulvaney is the interim head of the Consumer Financial Protection Bureau. He was appointed by President Trump amid an ongoing a power fight for control of the bureau.

Watchdog groups are up in arms because, under Mulvaney, the CFPB has put on hold a rule that would restrict payday lenders and their high-interest-rate loans. The agency has also dropped a lawsuit against online lenders charging 900 percent interest rates. Critics say these moves are payback for campaign contributions to Mulvaney when he was a congressman indicating South Carolina.

Payday lenders say that if you need some money prompt, they provide a valuable service. And that is how some customers feel at the Advance America storefront in a little unwrap mall in Pawtucket, R.I.

One of those customers is auto mechanic Rafael Mercedes, who says he very first came to the branch when he needed some parts to fix his own car. “My car broke down, and I needed money right then and there,” he says.

Rafael Mercedes says he chooses payday loans to credit cards, despite the sky-high interest rates. Chris Arnold/NPR hide caption

Rafael Mercedes says he chooses payday loans to credit cards, despite the sky-high interest rates.

Mercedes says he borrowed $450 and had to pay $45 in interest for the two-week loan. To get the loan, he left a check for the lender to cash the day he got paid by his employer — hence the term payday loans.

Borrowing the same amount of money on a credit card for two weeks wouldn’t cost anything if he paid it back. But Mercedes says he has bad credit and no longer uses credit cards because he had fatter debt problems when he did.

“I’d choose not to get into that big mess again,” he says. “The people here are friendly, and I don’t know, it just works for me.”

And if it means someone like Mercedes can get a needed car repair to get to work when money is taut, what’s the problem?

The Two-Way

Mulvaney Shows Up For Work At Consumer Watchdog Group, As Leadership Feud Deepens

The Two-Way

Consumer Watchdog Proposes Fresh Rules On Payday Lenders

Christopher Peterson, a law professor at the University of Utah, says the problem is that “one payday loan often leads to another payday loan and so on into a debt trap.”

“The average borrower is taking out eight of these loans per year,” he says. “Some are taking out nine, Ten, 15 or more loans per year. These costs can truly add up.”

Some people at the Advance America branch were clearly regular customers. Peterson says that by getting payday loans paycheck after paycheck, you’re paying an annual interest rate of 200 percent to 300 percent — sometimes even higher depending on state regulations. And, he says, lenders taking money directly from people’s checking accounts can trigger overdraft fees and other costs and problems.

Peterson worked for the Defense Department helping to draft regulations under the Military Lending Act, which banned these high-interest payday loans for service members.

“These loans have been found by Congress to be so dangerous that they have been prohibited for the military, and it was George W. Pubic hair that signed that into law,” he says of the Republican former president.

Peterson was also an adviser to the Consumer Financial Protection Bureau when it crafted its payday loan rule for the rest of the country.

The rule doesn’t go as far as the military version. But it does require lenders to make sure people can afford to pay the loans back. And it was just about to embark being phased into effect this month.

Any single payday loan isn’t so bad, consumer watchdogs say. But many people get stuck taking out loan after loan with annual interest rates of 200 percent to 300 percent or even higher. Chris Arnold/NPR hide caption

Any single payday loan isn’t so bad, consumer watchdogs say. But many people get stuck taking out loan after loan with annual interest rates of 200 percent to 300 percent or even higher.

Mike Calhoun, president of the Center for Responsible Lending, is among consumer watchdogs who are upset that Trump recently chose Mulvaney, a former Republican congressman and current White House budget director, to run the consumer bureau.

Mulvaney once introduced legislation to abolish the bureau and called the CFPB a “sick, sad” joke. He also accepted money from payday lenders.

And now that he is running the agency, the CFPB put this rule on hold, telling it will take steps to reconsider the measure. The CFPB has also dropped a lawsuit against online lenders charging 900 percent interest rates. And it just dropped an investigation into a lender that contributed directly to Mulvaney’s campaign.

“It is shocking,” Calhoun says. “Mulvaney took over $60,000 in campaign cash from the payday lenders when he was in Congress. He is deep in the pocket of the payday lenders and he’s doing everything he can to help them.”

Mulvaney declined requests for an interview. But he has said in the past he doesn’t think campaign contributions present a conflict of interest for him.

Payday lenders, as might be expected, are glad to see the rule put on hold. Jamie Fulmer, with Advance America, says the rule would be too burdensome to implement for such small-dollar loans. (Many states cap the total amount for a payday loan at $500.) And he says it would cut off loans for his customers who need them.

“This is the classic example of somebody from Washington coming in and telling, ‘Hey, we’re here to help and we’re here to tell you what’s best for you and your family and we’re gonna determine for you,’ ” Fulmer says.

Under Trump Appointee Mulvaney, CFPB Seen Helping Payday Lenders: NPR

Under Trump Appointee, Consumer Protection Agency Seen Helping Payday Lenders

  • Facebook
  • Twitter
  • Flipboard
  • Email

Mick Mulvaney, a former Republican lawmaker and current White House budget chief, was also picked as interim head of the Consumer Financial Protection Bureau. Astrid Riecken/Getty Pictures hide caption

Mick Mulvaney, a former Republican lawmaker and current White House budget chief, was also picked as interim head of the Consumer Financial Protection Bureau.

Astrid Riecken/Getty Pictures

Payday lenders emerge to have a powerful friend in Washington.

Former Republican Rep. Mick Mulvaney is the interim head of the Consumer Financial Protection Bureau. He was appointed by President Trump amid an ongoing a power fight for control of the bureau.

Watchdog groups are up in arms because, under Mulvaney, the CFPB has put on hold a rule that would restrict payday lenders and their high-interest-rate loans. The agency has also dropped a lawsuit against online lenders charging 900 percent interest rates. Critics say these moves are payback for campaign contributions to Mulvaney when he was a congressman indicating South Carolina.

Payday lenders say that if you need some money prompt, they provide a valuable service. And that is how some customers feel at the Advance America storefront in a little disrobe mall in Pawtucket, R.I.

One of those customers is auto mechanic Rafael Mercedes, who says he very first came to the branch when he needed some parts to fix his own car. “My car broke down, and I needed money right then and there,” he says.

Rafael Mercedes says he chooses payday loans to credit cards, despite the sky-high interest rates. Chris Arnold/NPR hide caption

Rafael Mercedes says he chooses payday loans to credit cards, despite the sky-high interest rates.

Mercedes says he borrowed $450 and had to pay $45 in interest for the two-week loan. To get the loan, he left a check for the lender to cash the day he got paid by his employer — hence the term payday loans.

Borrowing the same amount of money on a credit card for two weeks wouldn’t cost anything if he paid it back. But Mercedes says he has bad credit and no longer uses credit cards because he had fatter debt problems when he did.

“I’d choose not to get into that big mess again,” he says. “The people here are friendly, and I don’t know, it just works for me.”

And if it means someone like Mercedes can get a needed car repair to get to work when money is taut, what’s the problem?

The Two-Way

Mulvaney Shows Up For Work At Consumer Watchdog Group, As Leadership Feud Deepens

The Two-Way

Consumer Watchdog Proposes Fresh Rules On Payday Lenders

Christopher Peterson, a law professor at the University of Utah, says the problem is that “one payday loan often leads to another payday loan and so on into a debt trap.”

“The average borrower is taking out eight of these loans per year,” he says. “Some are taking out nine, Ten, 15 or more loans per year. These costs can truly add up.”

Some people at the Advance America branch were clearly regular customers. Peterson says that by getting payday loans paycheck after paycheck, you’re paying an annual interest rate of 200 percent to 300 percent — sometimes even higher depending on state regulations. And, he says, lenders taking money directly from people’s checking accounts can trigger overdraft fees and other costs and problems.

Peterson worked for the Defense Department helping to draft regulations under the Military Lending Act, which banned these high-interest payday loans for service members.

“These loans have been found by Congress to be so dangerous that they have been prohibited for the military, and it was George W. Thicket that signed that into law,” he says of the Republican former president.

Peterson was also an adviser to the Consumer Financial Protection Bureau when it crafted its payday loan rule for the rest of the country.

The rule doesn’t go as far as the military version. But it does require lenders to make sure people can afford to pay the loans back. And it was just about to begin being phased into effect this month.

Any single payday loan isn’t so bad, consumer watchdogs say. But many people get stuck taking out loan after loan with annual interest rates of 200 percent to 300 percent or even higher. Chris Arnold/NPR hide caption

Any single payday loan isn’t so bad, consumer watchdogs say. But many people get stuck taking out loan after loan with annual interest rates of 200 percent to 300 percent or even higher.

Mike Calhoun, president of the Center for Responsible Lending, is among consumer watchdogs who are upset that Trump recently chose Mulvaney, a former Republican congressman and current White House budget director, to run the consumer bureau.

Mulvaney once introduced legislation to abolish the bureau and called the CFPB a “sick, sad” joke. He also accepted money from payday lenders.

And now that he is running the agency, the CFPB put this rule on hold, telling it will take steps to reconsider the measure. The CFPB has also dropped a lawsuit against online lenders charging 900 percent interest rates. And it just dropped an investigation into a lender that contributed directly to Mulvaney’s campaign.

“It is shocking,” Calhoun says. “Mulvaney took over $60,000 in campaign cash from the payday lenders when he was in Congress. He is deep in the pocket of the payday lenders and he’s doing everything he can to help them.”

Mulvaney declined requests for an interview. But he has said in the past he doesn’t think campaign contributions present a conflict of interest for him.

Payday lenders, as might be expected, are glad to see the rule put on hold. Jamie Fulmer, with Advance America, says the rule would be too burdensome to implement for such small-dollar loans. (Many states cap the total amount for a payday loan at $500.) And he says it would cut off loans for his customers who need them.

“This is the classic example of somebody from Washington coming in and telling, ‘Hey, we’re here to help and we’re here to tell you what’s best for you and your family and we’re gonna determine for you,’ ” Fulmer says.

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