Mulvaney Lowered the Fine and Dropped Some Charges Against a South Carolina-based Payday Lender Accused of Harassing Borrowers and Mishandling Credit Reports
WASHINGTON, D.C. – Today Reuters reports Mick Mulvaney’s Consumer Financial Protection Bureau (CFPB) cut a fine in half and dropped charges against Security Finance, a South Carolina-based payday lending company accused of harassing borrowers and mishandling credit reports. The same company also contributed thousands of dollars to Mulvaney during his congressional career. Before Mulvaney became “Acting Director” of the CFPB in November, the Bureau had been seeking $10 million in fines but two weeks ago it was announced the company would pay only $5 million.
“The Consumer Financial Protection Bureau was established to protect us from shady financial institutions. Under Mick Mulvaney, the Bureau has abandoned that commitment and is instead rewarding predatory lenders like Security Finance that showered him with thousands in campaign cash. He’s not just dropping the fine Security Finance should be paying, he’s dropping the ball and leaving consumers in jeopardy,” said Karl Frisch, executive director of Allied Progress.
He continued,“By cutting this fine in half and giving special treatment to his contributors, Mulvaney is sending a disturbing message to financial institutions everywhere that bad behavior is acceptable and the CFPB will look the other way if you’ve given him enough money.”
WHAT YOU NEED TO KNOW
- In June 2018, the CFPB entered into a settlement with Security Group, Inc. and its subsidiaries after the company was accused of harassing borrowers and mishandling credit reports. The company was accused of “making humiliating and harassing in-person collection visits to “consumers’ homes,” “making harassing calls to consumers,” and making calls to consumers’… supervisors, landlords, family members, and suspected family members.” The company was also charged with giving false or incomplete information about its consumers to credit reporting agencies. [Lee P. Dunham, J.D., “CFPB settles with Security Group, Inc. for alleged CFPA, FCRA violations,” Wolters Kluwer, 06/14/18]
- During his Congressional Career, Mick Mulvaney took thousands in campaign cash from a PAC affiliated with Security Group. Inc.The $2000 came from a PAC affiliated with Security Finance Corporation of Spartanburg, a subsidiary of Security Group, Inc. [Press Release, “Bureau of Consumer Financial Protection Settles With Security Group, Inc.,”Consumer Financial Protection Bureau, 06/13/18; “Statement of Organization – Security Finance Corporation of Spartanburg and Affiliates PAC,” FEC.gov, 03/29/09; and “Security Finance Corporation of Spartanburg and Affiliates Political Action Committee – June 2016 Monthly,” FEC.gov, 06/09/16]
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