4 Ways Mulvaney Is Already Ruining the Consumer Financial Protection Bureau

When Donald Trump first took office, Americans had every reason to worry about the future of the Consumer Financial Protection Bureau (CFPB). Those concerns were legitimatized by November when Trump appointed White House Budget Director Mick Mulvaney to serve as acting director of the CFPB.

In just a couple short months, Mulvaney’s fingerprint on the CFPB is both obvious and frightening. To say that Mulvaney is chummy with big business is an understatement, and here he is supposedly leading the crusade to support consumer interests. Suddenly, an agency that has recovered $12 billion for defrauded Americans looks toothless for a number of reasons:

1. HELPING PAYDAY LENDERS SWINDLE AGAIN

Under the Barack Obama administration, the CFPB was instrumental in creating rules that kept payday lenders from egregiously ripping off poor Americans who live paycheck to paycheck. Some lenders are known to charge 300% interest to people they knew could never pay that amount back, so the CFPB established limits to ensure consumers would find themselves permanently in debt based on outrageous interest.

These limits were set to go into effect next summer, but payday lenders have, predictably, been unhappy at having their $8 billion annual profits from fees jeopardized. That’s why the CFPB has indicated it wants to rid of the rules before they get a chance to see the light of day.

2. NO INCOMING BUDGET

In his first budget request to the Federal Reserve, Mulvaney asked for a startling amount of money to run the bureau: $0. Yes, he asked for nothing.

Obviously, it’s not practical for an agency to run without any funds, but the CFPB won’t be shuttered immediately. The previous director kept a “reserve fund” of $177 million, most of which Mulvaney intends to spend in the upcoming quarter.

It’s likely that Mulvaney wants to exhaust the rainy day fund first since he’s hoping the CFPB won’t have any days – rainy or otherwise – to spend this money in the future.

3. THE CFPB MAY BE SHUTTERED

Again, why would Mulvaney want the CFPB to have a budget when he wants it closed? That’s not conjecture, either – as a congressman, he voted to terminate the bureau completely, labeling it a “sick, sad joke.”

Since taking over the CFPB, Mulvaney has attempted to soften that stance by saying, “Rumors that I’m going to set the place on fire or blow it up or lock the doors are completely false.” While it’s nice to know he’s not going to bomb the building, by only using extreme events as examples, notice how he avoided expressing his disdain for the CFPB or a desire to undermine it.

4. A NEW MISSION STATEMENT

That desire to undermine it seems consistent with the new mission statement that went on the CFPB’s website. Apparently, the bureau’s top priority is now searching for “outdated, unnecessary, or unduly burdensome regulations.”

Of course, that sounds a lot more like a bureau that’s looking out for the interests of businesses than consumers. Regulations exist to keep businesses from cheating customers, and it the CFPB makes it is mission to throw out regulations, then it’s a complete bastardization of why the CFPB was created in the first place.

Photo credit: Thinkstock

27 comments

Marie W
Marie W4 months ago

thanks

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natasha p
.9 months ago

ty

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Elaine W
Elaine W9 months ago

t Rump is the worst judge of "the best" people.

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Julie D
Julie D10 months ago

Every person Trump has appointed to every department is there basically to render it impotent and to destroy it.

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Richard A
Richard A10 months ago

Mulvaney is evil. I am having a hard time recalling any competent administrator that has yet been appointed by alt-facts-in-chief.

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Winn A
Winn A10 months ago

Only 4? Seriously?

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Danuta W
Danuta W10 months ago

Thank you for sharing

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Peggy B
Peggy B10 months ago

TYFS

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Anne M
Anne M10 months ago

Mulvaney,, another winner...

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Janet B
Janet B10 months ago

Thanks

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