Kathleen Cranach, Mick Mulvaney, Donald Trump discussed on Today, Explained


Cards Americans who take out loans and Americans who issue the lenders to. Literally said, we're working for the credit card companies and the banks. So under Mick Mulvaney, tenure does does the CF PB lose a lot of staff. Yes. So staff is way down and then you can see the results the actual enforcement actions are down about seventy five percent and the fines are much smaller. So even when they to take an enforcement action. These are tiny fine slaps on the wrist. They've dropped a bunch of lawsuits. There was an office of fair lending that looked at discriminatory practices of loans, an incredibly important mission for this if baby and he took it out of one office and put it under the director, which is seen as a way of cutting. The the mission of that Mulvaney is not in charge anymore, right know, movies non-charged anymore. He went back to being me Ownby director and Trump named this kind of faceless bureaucrat Kathleen Cranach her as as the head of the agency. Cranberry. Incidentally, sort of looked like she might be a breath of fresh air. She restored the original name to the place, which was of quite a savvy political move because nobody thought it was a good idea. And she could it was very easy way to score points. And she had the appearance of being a kind of kinder gentler administrator. And then in her first big action. She reversed this payday lending rule. And they basically rolled back to big provisions. One was the rule said you have to underwrite these borrowers. But that means is you have to know, whether the borrowers can repay you can't give money to people who can't repay because that's that's just predatory. So you need to undertake some effort to understand what their financial situation is in. Whether they have the wherewithal or the future income to pay this loan back. The second thing is they tried to limit these -secutive loans the payday lenders make their money by having these poor borrowers roll over their loans. One after another after another and tacking on fees after each one until they make their money back and more so many times over and so what the payday lending rule was going to do is limit their ability to. Roll those over to and the Trump administration Kranjcar has ruled back those two things and said, you don't have to underwrite and there's no limit on consecutive loans. How much of the original mandate of the organization what was set up under. The Obama administration remains does the organization have have any teeth left's? Well regulation is about the people who are in the regulator personnel matters. And it's something that democratic administrations have not fully understood this. I think they thought the rules kinda take care of themselves and the regulators run on the power of civil servants. And that's not really true. It really matters who the heads of these agencies are what is this particular hollowing out mean for people one when will they see and how might it look. Well, I think it's gonna mean that life is meaner and tougher and more dangerous and people will be more vulnerable in the coming years. I don't know if we could draw line to today, if you went on the street and found people or barely getting by whether that you can blame the Trump administration for that or the C P for that that might be a little bit unfair. But in a few years people are going to be back to being in hock to payday lenders all across the country, and that will be because of the Trump administration and military families will run into problems with loans and be exploited with bad insurance products and things like that. And that will be because the Trump administration. This is going to have a real effect on real people at some point in the near future. Jesse Eisenberg is a senior porter at propublica. We reached out to the consumer financial protection bureau for comment. But no one wrote back. I'm Sean Rotherham this today explained..

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