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Stop the Debt Trap Statement: Mulvaney Drops Lawsuit Against Payday Lenders Charging More Than 950% Interest

Submitted by on January 19, 2018 – 1:01 pm
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Mick Mulvaney, who was unlawfully appointed as Acting Director of the Consumer Financial Protection Bureau (CFPB), abruptly dropped a lawsuit against four abusive online payday lenders who illegally made loans of up to 950 percent APR in at least 17 states. The four lenders claimed that only tribal law, not state law, applied to the loans. However, in 2014, the Supreme Court made clear that tribes, “‘going beyond reservation boundaries’ are subject to any generally applicable state law.'” The loans in the lawsuit just dropped extended far beyond tribal lands, made over the Internet to consumers across the United States.

The Stop the Debt Trap campaign, made up of more than 700 organizations from across the country, released the following statement:

“This abrupt and reckless decision by Mick Mulvaney shows the level of disdain he has toward working families. He’s giving a free pass to his past campaign contributors, and he is enabling payday lenders to get away with charging obscene triple digit interest rates in violation of state law, to people who are already struggling to make ends meet.

“These predatory lenders violated state law when they made their toxic loans. Dropping this case only enables them to continue this abusive practice. It’s shameful that Mulvaney is catering to his payday lending pals—it goes to show who his real constituents are.”

 

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