A group of lawmakers forwarded correspondence this week in support of upholding the Consumer Financial Protection Bureau’s (CFPB) payday lending rule.
A Senate delegation comprised of 44 members are in favor of the initiative, which they said helps rein in business practices by payday lenders nationwide designed to exploit the financial hardships facing millions of families.
The letter to CFPB Acting Director Leandra English and Office of Management and Budget (OMB) Director Mick Mulvaney urges them to end efforts repeal the payday lending guideline.
“We understand that the CFPB is delaying the rule by granting waivers to companies who would otherwise be taking steps to begin complying with the rule and that the Bureau may be offering the payday loan industry an opportunity to undermine the rule entirely,” the senators wrote. “We view these actions as further efforts to undermine the implementation of this important consumer protection rule.”
Officials said Congress created the CFPB to protect Americans from unfair, deceptive and abusive lending practices Predatory lenders often target borrowers who find themselves in need of quick cash by charging them excessive interest rates and hidden fees that trap them in long-term cycles of debt.
“The CFPB’s role in serving as a watchdog for American consumers while making our financial markets safe, fair and transparent continues to be of critical importance,” the lawmakers said. “To this end, we urge you to end any efforts to undermine and repeal this critical consumer protection.”