Trump's CFPB to Rewrite Rule That Cracked Down on Payday Lenders
- Mulvaney-led agency to revamp regulation approved by Cordray
- Rule targeted financial products with high interest rates
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A U.S. regulator responsible for protecting consumers plans to rewrite a rule approved under its previous Democrat leadership that was meant to prevent payday lenders from saddling cash-strapped borrowers with expensive loans.
The Tuesday announcement from the Consumer Financial Protection Bureau indicates it will ease theregulation passed in October despite a massive lobbying campaign by the industry. The policy shift would be in line with President Donald Trump’s pledge to rollback onerous government restrictions on business that he contends are holding back economic growth.