January 17, 2018
By Aaron Weaver
DECATUR, Ga. — CBF Advocacy leader Stephen K. Reeves expressed disappointment at news that the Consumer Financial Protection Bureau, led by acting director Mick Mulvaney who also serves as President Trump’s budget director, plans to reconsider a recent rule to curb payday and auto-title lending.
The new rule, which was finalized in October, was set to begin taking effect this year and would cap the number of loans that lenders make to a borrower and also require lenders to determine the borrower’s ability to repay the loan. Read CBF Advocacy’s analysis of the rule here.
“This decision to reconsider the new payday lending rule is extremely disappointing and worrisome,” said Reeves, who serves as associate coordinator of partnerships and advocacy for the Cooperative Baptist Fellowship. “The process of studying the impact of payday and car-title loans, hearing from the public, including faith leaders, and considering draft language took over five years. I cannot imagine a single legitimate reason to go back and undo this good work. At the very least, this decision should be left to a permanent director who has been confirmed by Senate.”
Reeves said this decision should “not come as a surprise” given Mulvaney’s previous comments.
“Given acting director Mick Mulvaney’s prior statements about the work of the Bureau and his long history of vigorous defense of payday lenders, this action should not come as a surprise.”
Mulvaney has been widely criticized for his close ties to the very industries the CFPB is charged with regulating, including receiving campaign contributions from payday lenders during his six years as a member of Congress.
Reeves emphasized that CBF Advocacy plans to continue its support of efforts to curb predatory lending alongside Cooperative Baptists and friends.
“CBF Advocacy will remain ready to engage any new rulemaking moving forward. Throughout this long process, Cooperative Baptists have been a loud and clear voice calling for justice for their financially vulnerable neighbors. We as a Fellowship will continue to respond on behalf of those caught in debt traps because of this predatory industry. State legislatures have always had the ability to pass even stronger protections and we look forward to working alongside Cooperative Baptists and other people of faith to impact state policy as well.”
CBF is a Christian network that helps people put their faith to practice through ministry efforts, global missions and a broad community of support. The Fellowship’s mission is to serve Christians and churches as they discover and fulfill their God-given mission.