Mulvaney Picks Predators Over People

World Acceptance Corporation, a high-cost installment lender doing business in Tennessee among other states, learned today that the Consumer Financial Protection Bureau (CFPB) is dropping an investigation into the company’s business practices. The announcement comes as Mick Mulvaney, a favorite of the payday lending industry, continues his role as “acting director” of the CFPB.

More than 30 Tennessee consumers have filed complaints with the Consumer Bureau about World Finance this year alone.

“World Acceptance is among the predatory companies trapping low income Tennessee consumers in a cycle of debt,” said Tennessee Citizen Action executive director Andy Spears. “In addition to their high effective annual interest rates, they sell unnecessary and expensive credit insurance products and aggressively market loan renewals. Today’s decision by Mulvaney is tantamount to releasing a wolf in the sheep pen.

Allied Progress reports Mulvaney has received thousands of dollars in campaign contributions from World Finance.

“Let’s be clear: Mick Mulvaney has chosen his political donors over the very consumers he’s been tasked with protecting,” Spears added.

Our friends at Allied Progress have more:

  • In March 2014, World Acceptance Corp. disclosed “it is the target of an investigation by the federal Consumer Financial Protection Bureau.” The CFPB “is investigating whether the company is breaking federal laws in how it markets and offers its loans. The CFPB has made a Civil Investigative Demand that requires World to produce documents and answer a list of questions, the company said in a Securities and Exchange Commission filing.” [Paul Kiel, “High-Cost Lender World Finance Target of Federal Probe,” ProPublica, 03/13/14]

 

  • In 2013, ProPublica did an investigation on World Acceptance Corp. that “showed how the company’s loans are deceptively expensive and often trap borrowers in a cycle of debt. World’s business hinges on convincing low-income borrowers to renew their loans over and over again, a practice that can radically increase the amount of interest they pay.  The company also packages nearly useless insurance products with its loans in many states, allowing it to skirt state interest rate caps[.]” [Paul Kiel, “High-Cost Lender World Finance Target of Federal Probe,” ProPublica, 03/13/14]

 

wolf sheep

 

For more on our consumer protection work, follow @TNCitizenAction


 

Share

Related Posts:

Comments

One Response to “Mulvaney Picks Predators Over People”

Trackbacks

Check out what others are saying about this post...
  1. […] Mulvaney Picks Predators Over People […]



Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!