Financial Watchdog Expected To Get Its Teeth Back Under Biden

Advertisement

BEGIN ARTICLE PREVIEW:

Enlarge this image

Under President Trump, the Consumer Financial Protection Bureau weakened a rule that aimed to protect people who get payday loans. Consumer advocates say they are looking forward to a Biden administration strengthening the agency.

Rogelio V. Solis/AP

hide caption

toggle caption

Rogelio V. Solis/AP

The Consumer Financial Protection Bureau was created after the last financial crisis to be the tough cop on the beat, making sure people don’t get taken advantage of by lenders, debt collectors or other companies. It’s returned $12 billion to people harmed by financial firms. “This agency was designed to be a watchdog,” says Deepak Gupta, a former top enforcement lawyer at the bureau. “That mission is more important than ever.” With millions of Americans in desperate financial straits due to the pandemic, he says, more people are vulnerable to predatory practices. But under the Trump administration, this federal watchdog had its teeth removed. President Trump put one of the bureau’s fiercest Republican critics, Mick Mulvaney, in charge of running it. As a congressman, Mulvaney called the bureau “a joke.” He said, “That’s what the CFPB really has been in a sick, sad kind of way.” Mulvaney sponsored legislation to abolish the …

END ARTICLE PREVIEW

READ MORE FROM SOURCE ARTICLE