Magazine article American Banker

CFPB's Payday Rule Cuts States off at the Knees

Magazine article American Banker

CFPB's Payday Rule Cuts States off at the Knees

Article excerpt

Byline: Jeff Landry

Since its inception, the Consumer Financial Protection Bureau has consistently hurt the consumers it purportedly protects. And while acting Director Mick Mulvaney has worked diligently and miraculously to improve this agency, the sins of CFPB's past continue to torment our republic today.

During the Obama administration, the CFPB went beyond its stated purpose of leveling the regulatory playing field and became a tool of the political left to issue rules based on partisan ideology and to impose crippling financial penalties that some courts later ruled to be unreasonable and excessive.

As a former Member of Congress and as the attorney general of Louisiana, I have witnessed the abuse of power in a plethora of fields by the executive branch. Each one has renewed my passion and support for the separation of powers. But it seems the CFPB's incessant capricious decision-making and abuse of authority have fueled my fire for federalism even more.

One of the CFPB's most egregious offenses is its short-term, small-dollar lending rule, which has allowed federal bureaucrats to usurp successful state laws and regulations governing lending. For the economic liberty of our people and the sovereignty of our states, Congress must use its powers under the Congressional Review Act to combat this federal encroachment.

So last year, I joined many other attorneys general in petitioning congressional leaders to take action. And we were not alone in the cause. The CFPB's own estimates are that out of the 1.4 million comments received on their proposed rule, over 1 million were opposed to the rule. However, our voices were silenced by the CFPB and its unilateral decision to impose this one-size-fits-all standard created in the backrooms of D.C.

Our criticisms then remain equally as valid now. …

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