While serving in Congress, Mick Mulvaney called the Consumer Financial Protection Bureau (CFPB) a “sick sad joke” and drafted legislation to eliminate it. The financial crises during the Obama administration, brought about by Republican-led deregulation of Wall Street and banks during the Bush administration, prompted the creation of the consumer protection watchdog agency.
When President Donald Trump appointed Mulvaney to lead the CFPB, people were shocked. However appointing people who previously vowed to destroy an agency to head that agency has been a hallmark of the Trump administration.
Mulvaney was confirmed as Trump’s appointee to head the Office of Management and Budget in February 2017. But Trump appointed him to serve as Acting Director of the CFPB under the Federal Vacancies Reform Act (FVRA), which allows the president to appoint an interim replacement without any Senate hearings or confirmation.
Trump utilized the FVRA to fill a number of positions in his administration. His choice to do so has come under fire for the frequency of its use. FVRA effectively allows anyone to serve in a high government position without vetting by Congress.
The original mission of the CFPB involves protecting American consumers from predatory practices by financial institutions and limiting risks taken by a deregulated Wall Street. But a recent internal memo reveals plans to effectively neuter the consumer protection function of the agency and redirect its efforts.
The “revised mission and vision of the bureau” for 2018 through 2022, slated for Monday, directs the CFPB to “fulfill its statutory responsibilities but go no further.” The bureau should also act “with humility and moderation.”
Many Republicans called for the CFPB to be shut down since inception, claiming it’s too powerful. Within weeks of his interim appointment, Mulvaney worked to neuter the watchdog agency.
Under Mulvaney, the CFPB delayed a new payday lending regulation and dropped a years long investigation into one payday lender who contributed to Mulvaney’s campaign. The new CFPB boss also dropped a lawsuit against Golden Valley Lending. The suit claims the lender illegally charges people up to 950 percent interest rates.
This latest move, however, drew some scrutiny for both Mulvaney and his boss.
Mulvaney , bought & sold by the industries he’s supposed to protect consumers from, just dropped the consumer protection case against Golden Valley credit- a case years in the making which would have set standards for pay-day and short term loans.https://t.co/3HfwYX352l
— Dave Muir 🌹 (@dgmuir) February 12, 2018
Trump & Mulvaney Pay To Play With Payday Loans https://t.co/12N65bOQ0V
— #TheResistance (@SocialPowerOne1) February 7, 2018
— OpenSecrets.org (@OpenSecretsDC) December 11, 2017
Mulvaney, current Director of the CFPB, pulled a lawsuit against payday lender, Golden Valley, for illegal f***ing wrong loans with interest rates over 900%
This woman on NPR said she felt just so stupid, esp since she voted for Trump.
😡!!🙄😤 so you brought this on yourself
— Gary Wilkins (@GRWilkinsJr) February 12, 2018
Reopening the payday loan rule “shows disdain for consumer protection and low-income communities that are targeted by these debt trap loans.” Mulvaney wants to kill new #CFPB protections for payday loan borrowers. Read our statement. #StopTheDebtTrap https://t.co/obYpxObJcs
— StopTheDebtTrap (@StopTheDebtTrap) January 16, 2018