BREAKING: Mulvaney Drops CFPB Case Against Predatory Lender That Gave Him Thousands
Mick Mulvaney’s CFPB Notified World Acceptance Corporation It Was Dropping Its Case Against Them – Campaign Finance Records Reveal the Company Gave Mulvaney Thousands in Campaign Cash
WASHINGTON, D.C. – Today, World Acceptance Corporation issued a press release announcing “the company received a letter from the Consumer Financial Protection Bureau indicating the investigation into the company’s marketing and lending practices has been completed” and that the CFPB “does not intend to recommend enforcement action.” The predatory lender’s press release failed to mention that its political action committee has contributed thousands of dollars to the CFPB’s new “acting director,” Mick Mulvaney.
“The Consumer Financial Protection Bureau was established to protect consumers from predatory lenders like World Acceptance Corporation, but under Mick Mulvaney’s control the Bureau is undermining that important mission. Worse still, Mulvaney’s CFPB appears to be rewarding bad financial actors who also happen to be his campaign contributors,” said Karl Frisch, executive director of Allied Progress.
He continued, “When Trump installed him as ‘acting director,’ Mulvaney promised to meet all of the Bureau’s legal deadlines and obligations. By repeatedly dropping CFPB cases against predatory payday lenders, he is breaking the spirit of that commitment. We deserve better. It is time for President Trump to nominate a new director who will stand up for hard working Americans and protect us from financial bad actors.”
Additional Background:
Mulvaney has taken thousands from World Acceptance Corporation PAC.
- Mick Mulvaney has received at least $4,500 from World Acceptance Corporation PAC. [Follow the Money search for World Acceptance Corp to Mick Mulvaney, accessed 01/23/17]
In March 2014, the CFPB began an investigation into World Acceptance Corporation for potentially “breaking federal laws in how it markets and offers its loans.”
- 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 January 2018, the CFPB, now run by Mulvaney, completed its investigation and said it “does not intend to recommend enforcement action.”
- In January 22, 2018, the CFPB completed its investigation into World Acceptance Corporation’s “marketing and lending practices.” The CFPB “does not intend to recommend enforcement action.” [Press Release, World Acceptance Corporation, 01/22/18]
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.”
- 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]
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