The Trump Administration came into office with grand, almost hysterical plans to shred and burn upon the National Mall any and all rules, regulations and restrictions on business they could get their hands on. Fourteen-and-a-half months later, those plans haven’t exactly come to blazing fruition, through a combination of laziness, short attention spans and incompetence on the part of Team Trump, and utter inability to muster a simple majority of Congressional votes on the parts of Paul Ryan and Mitch McConnell. This has the payday lending industry worried. You see, in the waning days of the Obama Administration, the Consumer Financial Protection Bureau concocted a little rule that could severely crimp their business of preying on the poor and desperate. This rule is set to go into effect next August. You would think this would be more than enough time for Trump, Ryan, McConnell and acting part-time CFPB director/destroyer Mick Mulvaney to figure out how to not make that happen. But the payday lenders have seen how the first 14 months of the Trump era have gone and they’re not at all sure the next 14 will prove any more efficient from a regulation-eliminating standpoint, no matter how tough Mulvaney’s talk to his employees is. And they’ll be damned if they let a Fiduciary Rule just happen to them through ponderous inaction, even if Mickey M called off the dogs on them. So maybe the courts can manage what the other branches seem so singularly unable to achieve.
“The process for undoing a rule or amending it or even extending the time for its compliance is really laborious and really time consuming,” said Dennis Shaul, chief executive of the Community Financial Services Association of America, the main trade group of payday lenders. The CFSA was joined by the Consumer Service Alliance of Texas in suing the CFPB in the U.S. District Court for the Western District of Texas in Austin, the groups said….
The payday-lenders groups initially chose not to sue over the rule, but have decided to go ahead now given that a revision of the rule, if it happens, might not come before it goes into effect in August 2019….
Mr. Mulvaney said during a speech at an industry conference Monday that the best solution to overturning a completed rule resides with Congress, which could kill a new rule with a simple majority under the Congressional Review Act.
Alas, it seems Community Financial Services of America, et. al., seem to realize it is an election year and loosening the strings on consumer vultures may not be the best move for the already-endangered Republican Congressional minority. Best leave it to some activist judges.