From Washingington Examiner: Senate Democrats warn Mick Mulvaney against repealing payday loan rule

Senate Democrats warn Mick Mulvaney against repealing payday loan rule

by Joseph Lawler | March 27, 2018 05:15 PM

Forty-three Democrats wrote to acting Consumer Financial Protection Bureau director Mick Mulvaney on Tuesday. They told him not to undo the agency's payday loan rules, which he announced in January would be reconsidered.

(AP Photo/Manuel Balce Ceneta)

The vast majority of Senate Democrats are worried that acting Consumer Financial Protection Bureau director Mick Mulvaney is going to kill major new federal regulations on payday loans.

Forty-three Democrats wrote to Mulvaney Tuesday not to undo the agency's payday loan rules, which he announced in January would be reconsidered.

“The CFPB’s role in serving as a watchdog for American consumers while making our financial markets safe, fair, and transparent continues to be of critical importance," the Democrats wrote. "To this end, we urge you to end any efforts to undermine and repeal this critical consumer protection."

The rule was finalized in October under an Obama holdout director, Richard Cordray. After being appointed by President Trump, Mulvaney, who also is the director of the Office of Management and Budget, took the first step toward revising or undoing the rule by giving notice that it would be reconsidered. He also eased off some of the agency's investigations of payday lenders.

Of interest, several centrist Democrats did not sign the letter, including Missouri's Claire McCaskill, Montana's Jon Tester, North Dakota's Heidi Heitkamp, and West Virginia's Joe Manchin. All four senators are up for reelection in states that Trump won.

Republicans will be looking for Democrats to join them in a vote to disapprove the rule. Sen. Lindsey Graham, R-S.C., filed a resolution last week to cancel the rule through the Congressional Review Act. The vote would require a simple majority.