For years deceptive and predatory lenders have bilked millions of trusting consumers from their hard-earned monies, while consumer advocates have fought back for fair and transparent lending. On Feb. 11, another contentious round of exchanges on debt-trap lending occurred on Capitol Hill. Unlike previous forums, however, this one came with an open bias.
A subcommittee of House Financial Services, held a hearing named, “Short-term, Small Dollar Lending: the CFPB’s [Consumer Financial Protection Bureau] Assault on Access to Credit and Trampling of State and Tribal Sovereignty”.
With a title like that, the presumption of objectivity took a holiday. Committee members and most panelists criticized the consumer protection agency for proposing rules to rein in abusive practices in the payday loan market.
“I find it offensive that you would say that people aren’t smart enough to make decisions for themselves,” said Rep. Mia Love of Utah, believed to be the first Black representative in Congress from the state.