Another Bad Move by Mulvaney

As we noted yesterday, acting CFPB Director Mick Mulvaney sided with predators over Tennessee consumers in a long-running investigation of high-cost lender World Acceptance Corporation.

Here’s a statement from the Stop the Debt Trap Coalition, of which Tennessee Citizen Action is a member:

For the second time in a week, Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau (CFPB), has taken action to protect one of his campaign donors instead of consumers by dropping an investigation into World Acceptance Corporation, a Greenville, South Carolina-based company that operates in 15 different states. Under the direction of Mulvaney, who has received at least $4,500 in campaign donations from World Acceptance Corporation, the Consumer Bureau reversed an earlier decision by the enforcement office to pursue legal action against the Company.

World Acceptance Corporation has been under investigation for violations against the Consumer Financial Protection Act of 2010 since 2014. The investigation was dropped despite hundreds of complaints from consumers to the Consumer Bureau as recent as last month and a multi-year report by ProPublica describing the deceptive marketing practices that trap consumers into renewing loans with interest rates up-to 300 percent APR.

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

“When Mick Mulvaney was a member of Congress, the World Acceptance Corporation gave more campaign contributions to him than any other member in the U.S. House of Representatives. Today, as acting director of the Consumer Bureau, Mulvaney showed his gratitude by dismissing a four-year investigation into deceptive practices the company has used to trap consumers into debt. Mulvaney’s actions leave no doubt where his priorities lie – campaign friends over consumers.”

 

For more on our consumer protection work, follow @TNCitizenAction


 

 

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