More than 100 House Democrats criticized efforts by a consumer watchdog agency to remove certain elements of a rule that aims to regulate the payday lending industry.
House Financial Services Committee Chairwoman Maxine Waters, D.-Calif., and 101 Democratic members of Congress sent a letter to Consumer Financial Protection Bureau Director Kathy Kraninger expressing their "significant concerns" over the CFPB's plan to remove the ability-to-pay requirements from the Payday, Vehicle Title, and Certain High-Cost Installment Loans Rule.
"The Consumer Bureau's proposal represents a betrayal of its statutory purpose and objectives to put consumers, rather than lenders, first," the lawmakers wrote.
In February, the bureau proposed reducing underwriting restrictions on some lenders issuing payday, single-payment vehicle title and longer-term balloon payment loans. The CFPB also moved to delay implementation of the rule to Nov. 19, 2020, from Aug. 19, 2019.
In their criticism of the agency's plan to remove the ability-to-pay requirement, the lawmakers wrote that it "would allow predatory payday and car-title lenders to continue their abusive practices unfettered." The House Democrats also condemned the implementation delay, saying it would leave consumers unprotected for 15 more months.
"As the Director of the Consumer Bureau, it is critical that you do what is right on behalf of all consumers, which is supposed to be the primary imperative of the agency," the lawmakers wrote.
