Trump Is Bringing Back Predatory Lenders To Prey On Poor People

Last cycle payday lenders only handed out $1,302,189 to congressional candidates, mostly to incumbents. And mostly to Republicans ($1,054,081). The biggest players were Harpeth Financial Services, Advance America Cash Advance Centers, Advance Financial, Online Lenders Alliance, Select Management Resources and Moneytree, Inc. Since 1990 Payday lenders have contributed $11,754,614 to men and women running for Congress-- $4,214,274 to Democrats and $7,505,887 to Republicans. Most of the scumbags who took the most sewer money from the payday lenders are now gone from Congress-- Kevin Yoder (R-KS), Jeb Hensarling (R-TX), Harry Reid (D-NV), Lynn Jenkins (R-KS), Pete Sessions (R-TX) and Spencer Bachus (R-AL), Kendrick Meek (D-FL). This was the list of people who did the bidding of the payday lenders and were rewarded with 6-figure bribes.

Now let's take a look at the 10 corrupt members of Congress who are still serving in the House and who were the biggest recipients of Payday lender bribes just in the 2018 cycle:

• Blaine Luetkemeyer (R-MO)- Financial Services Committee- $50,600
• Henry Cuellar (Blue Dog-TX)- Appropriations Committee- $43,000
• Alcee Hastings (D-FL)- Rules Committee- $41,000
• Steve Stivers (R-OH)- Financial Services Committee- $40,400
• Tom Graves (R-GA)- Appropriations Committee- $39,800
• Cathy McMorris Rodgers (R-WA)- Energy and Commerce- $32,600
• Patrick McHenry (R-GA)- Financial Services Committee- $23,500
• Ann Wagner (R-MO)- Financial Services Committee- $23,000
• Frank Lucas (R-OK)- Financial Services Committee- $20,000
• Roger Williams (R-TX)- Financial Services Committee- $18,150

I'm sure you've noted that 60% of them come from just one committee, Financial Services. That's not a coincidence. The Trump regime announced last week that the Consumer Financial Protection Bureau plans to roll back Obama-era restrictions on predatory payday lenders.

NBC News reported that critics worry that "payday lenders take advantage of impoverished Americans who often turn to them for small dollar loans in a pinch. These high-interest loans can force financially vulnerable people into a trap of loans, renewals and exorbitant fees that lead to more debt... Cordray said on Wednesday that the Trump administration's action favors the 'profits of payday lenders' over 'some of the hardest-hit consumers. The move to unwind the rule is based on a claim of protecting access to credit-- but credit that is offered without regard to the borrower’s ability to repay is irresponsible and often predatory,' he said in a statement. 'Extensive data analysis shows this is true for payday lenders. The Trump administration’s political efforts to roll back the rule will hurt those who are being abused and mistreated by ruinous loans. So today’s action should be and will be subject to a stiff legal challenge'."

Alex Horowitz, the senior research officer with Pew Charitable Trusts consumer finance project, warned that the rule change would leave the 12 million Americans who use payday loans annually unprotected from predatory interest rates, which average 400 percent.

"This proposal is not a tweak to the existing rule; instead, it's a complete dismantling of the consumer protections finalized in 2017," Horowitz said in a statement. "The rule was working. Lenders were making changes even before it formally took effect, safer credit was already starting to flow, and harmful practices were beginning to fade." Lending groups, however, celebrated the decision. Some even pushed for CFPB to rescind the rule in its entirety.

The Community Financial Services Association of America, a group that sued the CFBP over its rule against payday lending, said that it was pleased with the announcement, but added that it did not think the current director’s decision went far enough.

Critics of the new policy said this fulfilled their fears that the Trump administration was working to undo consumer protections and would put financially vulnerable Americans at risk.

“[CFPB Director] Kathy Kraninger is siding with the payday loan sharks instead of the American people,” said Rebecca Borné, senior policy counsel at the Center for Responsible Lending. “The CFPB, under a previous director, spent five years developing these consumer safeguards, taking input from lenders, faith leaders, veteran and military organizations, civil rights groups, consumer advocates, and consumers from across the country.”

Because of the Democratic takeover of the House-- and the restructuring of the House Financial Services Committee-- crooked banisters and payday lenders can only depend on Trump to give them license to steal. Last year the committee was run by 34 Republicans-- all crooked-- and among the 26 Democrats, over half were slimy Blue Dog/New Dems. This time 34 Democrats run the show and, although there are still quite a few slimeballs and bankster allies-- Gregory Meeks (New Dem-NY), Lacy Clay (MO), David Scott (Blue Dog-GA), Ed Perlmutter (New Dem-CO), Jim Himes (New Dem-CT), Denny Heck (Dem Dem-WA), Josh Gottheimer (Blue Dog-NJ), Vicente González (Blue Dog-TX)-- new members include fighting reformers: Alexandria Ocasio-Cortez (NY), Katie Porter (CA), Rashida Tlaib (MI) and Ayanna Pressley (MA). And the new ranking member is one of Congress' most corrupt and dishonest members, Patrick McHenry (NC).