Trump Administration Plans To Defang Consumer Protection Watchdog
Published on February 12, 2018
By FLONAD News
The Consumer Financial Protection Bureau was created after the financial crisis to protect Americans from being ripped off by financial firms.
Now, President Trump’s interim appointee to run the bureau, Mick Mulvaney, is making radical changes to deter the agency from aggressively pursuing its mission.
An internal memo obtained by NPR says the CFPB on Monday will unveil a new strategic plan to that end. A “revised mission and vision of the bureau” for the years 2018 through 2022 will call upon the agency to “fulfill its statutory responsibilities but go no further.” It also says the bureau should be “acting with humility and moderation.”
This new direction is consistent with Mulvaney’s other memos and statements and formalizes his plans for defanging the watchdog bureau and reshaping its mission, according to insiders and experts that NPR has talked to.
The CFPB is considered a powerful and independent watchdog. But many Republicans have wanted to shut it down since Day 1 because they think it’s too powerful. Mulvaney is one of them.
As a congressman, Mulvaney called the agency a “sick sad joke.” He drafted legislation to abolish it. So people at the bureau were shocked when the president appointed him to run this consumer protection agency.
Within weeks of coming on board, Mulvaney has worked to make the watchdog agency less aggressive.
Under his leadership, the CFPB delayed a new payday lending regulation from going into effect and dropped an investigation into one payday lender who contributed to Mulvaney’s campaign.
In another move that particularly upset some staffers, the new boss also dropped a lawsuit against an alleged online loan shark called Golden Valley Lending.
The suit says the lender illegally charges people up to 950 percent interest rates. It took CFPB staffers years to build the case.
- Related Topics: