Essay on The 's War On Installment Loans
The Consumer Financial Protection Bureau’s war on installment loans disenfranchises the people that it’s charged with protecting according to a report posted at Investors.com. The agency not only exceeds its legislative mandate but also uses questionable tactics that generate de facto legislative actions by enforcing laws that have not been passed by any legislative body. The report calls for incoming President Trump to replace agency director Richard Cordray as soon as possible.
The Constitution prohibits passing laws that criminalize past behavior, but that’s exactly what the CFPB is doing in its opposition to installment loans according to the report. Cordray has defended his actions aggressively in the war on short-term, small-value loans that are commonly grouped under the heading “payday loans.” Online installment loans, though similar, have different structures in that they’re financed over longer periods and don’t require full repayment from a borrower’s next payday.
Supporters of the CFPB point out that the agency has returned billions of dollars to consumers and uncovered malfeasance such as the Wells Fargo scandal. Democrats and the outgoing Obama administration continue to express support for the agency, so it’s unclear whether the Republican mandate will be enough to reform or abolish the agency.…