Trump’s Pick at Consumer Bureau Will Not Pursue Abusive Payday Loan Debt Collector, Might Do Same for Three Other Payday Lending Companies
WASHINGTON, D.C. – Today, Reuters published a report, "Exclusive: Trump official quietly drops payday loan case, mulls others – sources," that provides additional evidence that Trump's unlawfully appointed Acting Director of the Consumer Financial Protection Bureau Mick Mulvaney is giving predatory payday lenders a free pass. Specifically, National Credit Adjusters, a debt collector for payday loan companies, confirmed that a pending case against the company is "dead." Also, "five people with direct knowledge of the matter" said that Mulvaney is considering dropping pursuit of cases against Security Finance, Cash Express, and Triton Management Group. All the cases had been approved for litigation by previous Consumer Bureau Director Richard Cordray.
Center for Responsible Lending executive vice president Diane Standaert issued the following statement:
Mick Mulvaney is letting predatory payday lenders off the hook while they rip off American consumers.
The companies identified in this report have a well-documented history of causing borrowers financial devastation. If they have committed illegal actions, they should be held accountable.
Today’s news is more indication of the continuation of a troubling trend that the Trump Administration is choosing to make life easier for predatory lenders to prey on people already struggling to make ends meet.
For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Matthew Kravitz at matthew.kravitz@responsiblelending.org or 202-349-1859.