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Hensarling Applauds Mulvaney’s Call for Review of CFPB Practices, Payday Lending Rule

Washington, Jan 17 -

House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement applauding the Consumer Financial Protection Bureau’s (CFPB) announcements that it is undertaking a sweeping review of agency actions and practices, and that it would revisit a controversial rule relating to payday lenders which was issued by the former director before he left office.

“I want to take this opportunity to commend Acting Director Mulvaney on his recent call for evidence of the CFPB’s track record under its previous leadership. As I have said for years, the CFPB has an important mission, and it is capable of great good.  But when it acts without accountability or transparency, it is also capable of great harm.  The federal government must root out fraud and other illegal acts perpetrated by those engaged in interstate commerce, but Congress must also protect the American people from overreach at the CFPB, which infringes on consumer choice and economic freedom under the guise of consumer protection.

“The payday rule as finalized under the previous CFPB leadership is a perfect example of this. Nearly half of Americans are living on only a $400 or less cushion. That is one sick child in the ER, one broken down car, one emergency away from a financial disaster. For these Americans, a small-dollar emergency loan could be the only lifeline they have to prevent further financial ruin. The CFPB’s rule on payday loans was yet another example of powerful Washington elites using the guise of ‘consumer protection’ to actually harm consumers and make life harder for lower and moderate income Americans. Americans should be able to choose the checking account they want, the mortgage they want and the short-term loan they want and no unelected Washington bureaucrat should be able to take that away from them.

“I applaud Acting Director Mulvaney for his leadership in safeguarding economic freedom without sacrificing consumer protection.”