Friday, August 21, 2020
Kraninger Questioned Over Proposed Changes to Payday Loan Rule - OppLoans
Kraninger Questioned Over Proposed Changes to Payday Loan Rule - OppLoans Kraninger Questioned Over Proposed Changes to Payday Loan Rule Kraninger Questioned Over Proposed Changes to Payday Loan RuleInside Subprime: March 19, 2019By Lindsay FrankelDuring her initial appearance before the Senate Banking Committee, Kathy Kraninger, director of the Consumer Financial Protection Bureau, faced interrogation by lawmakers over the bureauâs recent failures to protect consumers. Lawmakers scrutinized the agencyâs decisions to rescind portions of the Obama-era payday lending rule and cease routine examinations for violations of the Military Lending Act. Kraninger was also questioned about the agencyâs lack of enforcement against student loan lenders since she took control of the CFPB three months ago.Democrats criticized Kraninger for going soft on bad actors, highlighting a drastic difference in the number of lawsuits brought by the agency under the Trump administration when compared to the record of previous enforcement actions under the Obama administration.Sen. Elizabeth Warren, D-Mass, pointed out that under Kraninge râs direction, the CFPB hasnât filed even one lawsuit against a student lender, when compared to 50 cases brought by the agency under former Director Richard Cordray. Under Cordray, the bureau returned $712 million to consumers harmed by bad financial practices.Warren also noted a reduction in discrimination lawsuits under Kraninger and former acting director Mick Mulvaney, and expressed concerns over the bureauâs lack of attention to debt collection and credit reporting problems.You are supposed to be the cop on the beat, but you are only watching out for the crooks who are cheating American consumers, Warren said. If you had any decency youd either do your job or resign.And, after Mulvaney ceased examinations for violations of the MLA, Kraninger asked Congress for âclear authorityâ to supervise financial firms for compliance with the act rather than resume the examinations, even though the CFPB had conducted the exams regularly for years under the Obama administration.Se veral senators grilled Kraninger over her lack of action to protect service members, including Jack Reed, D-R.I., a military veteran. âYouâve chosen to read the statute to protect payday lenders,â Reed said. âWhat is so frustrating to me is if this is the policy of the administration, you decide you shouldnât supervise these companies. Supervision prevents the need for enforcement.âKraninger also received sharp criticism for the CFPBâs proposed changes to the payday lending rule, which has yet to go into effect. Chris Van Hollen, D-Md., asked Kraninger if she was aware just how much the decision to scrap the underwriting requirements of the rule would benefit the payday lending industry. âAre you familiar with the fact that you found the payday loan industry would save $7.3 billion to $7.7 billion?â he asked.âI understand what youâre getting at,â Kraninger responded. âThere are a number of facts here; weâre in active litigation on this issue.âKraninger was vague in her responses to Republicansâ questions regarding the direction of the bureau as well. When Sen. Tim Scott, R-S.C., asked whether the agency would provide regulatory relief for credit unions, Kraninger said: âIt is certainly an objective of the bureau to understand and reduce regulatory burden. But itâs also important how this impacts consumers.âFor more information on payday loans, scams, and cash advances and check out our city and state financial guides including, Illinois, Florida, Texas and more.Visit OppLoans on YouTube | Facebook | Twitter | LinkedIn
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.