Magazine article American Banker

Graham Unveils Senate Measure to Repeal CFPB Payday Rule

Magazine article American Banker

Graham Unveils Senate Measure to Repeal CFPB Payday Rule

Article excerpt

Byline: Ian McKendry

WASHINGTON -- Sen. Lindsey Graham, R-S.C., has introduced legislation to overturn the Consumer Financial Protection Bureau's payday lending rule.

Congress has until early May to overturn the CFPB's rule to ban high-cost, short-term, small-dollar loans. The rule was finalized in October under former CFPB Director Richard Cordray and went into effect in January, but companies don't have to comply with most of the provisions until August.

Under the Congressional Review Act, lawmakers can consider blocking regulations within a given time frame. Graham's resolution, which was introduced Thursday, comes as acting CFPB Director Mick Mulvaney has already said the agency will internally reconsider the rule as well.

Mulvaney, who has consistently attacked CFPB policies implemented under Cordray, told reporters in December that it would be more "more appropriate" for Congress to pass a Congressional Review Act resolution to overturn the rule than for the agency to unwind it.

Congress has 60 session days to overturn a rule, which only requires a simple majority to pass, after it is remitted to Congress.

Progressive groups have quickly blasted Graham's resolution. Allied Progress issued a press release Friday citing data from the Center for Responsive Politics showing that Graham has received $35,800 from payday lenders, and noted that that includes over $12,000 from World Acceptance Corp., which had been under investigation by the CFPB until the probe was dropped under Mulvaney. …

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