To my friends who have thought all along that President Trump was on their side —
These insidious payday loans, with an average interest rate of 391% (yes, 391%) and often made to military personnel and their families, were scheduled to be controlled by pending regulations which the Trump Administration just reversed.
These loans are designed to lock people into a perpetual state of financial turmoil.
This reversal was not made to protect struggling Americans, but rather to protect the profits of greedy lenders.
From the article:
“Those loans can leave borrowers trapped in cycles of debt, incurring fees every few weeks to replenish loans they cannot afford to pay off.”
“Trump appointees were so determined to eliminate the rule that they manipulated the agency’s research process to steer it toward their predetermined outcome, a bureau employee claimed in an internal memo reviewed by The New York Times. The memo’s disclosure prompted congressional Democrats to call for federal watchdogs to investigate.”
“The Pew Charitable Trusts, which has long pushed for curbs on high-interest loans, called the decision “a grave error” that exposes millions of Americans to unaffordable payments with triple-digit interest rates.”
“Payday lenders have contributed $16 million to congressional candidates, mostly Republicans, since 2010, according to the Center for Responsive Politics. The Community Financial Services Association of America held its 2018 and 2019 annual conferences at the Trump National Doral golf club.”
“The scrapped rules could be revived, in some form, if former Vice President Joseph R. Biden Jr. wins the presidency in November. A Supreme Court ruling last week granted the president the power to fire the bureau's director at will.”
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