Why is This Texas Democrat Attempting to Sabotage Obama’s Payday Lending Rule?

WASHINGTON, D.C. – Republicans in Congress attempting to sabotage the Consumer Finance Protection Bureau (CFPB), a defining part of President Barack Obama’s legacy, have an ally on the other side of the aisle in Texas Democrat Henry Cuellar.  Previously critical of the CFPB’s payday lending rule, Cuellar recently signed on to co-sponsor legislation to repeal these important consumer protections from predatory lenders.

According to Center for Responsive Politics, Cuellar has over 45,000 reasons to oppose the common-sense rule. Since the 2010 cycle, Cuellar has received $45,700 from the payday lending industry – one of the highest among Democrats in Congress. That could explain why Cuellar has no interest in taming “the ‘Wild West’ of Texas Payday Lending.”

“No amount of money hides the fact that Rep. Cuellar is selling out his constituents for campaign contributions, and trampling President Obama’s legacy of consumer protections in the process. If Cuellar is successful, he will not only undermine a key accomplishment of the CFPB, but allow predatory payday loan practices to continue unabated,” said Karl Frisch, executive director of Allied Progress.

He continued, “It took years to establish these protections, and Cuellar and his industry-backed friends in Congress have stood in the way at every turn. Enough is enough. How much money would it take for Cuellar to do his job and stand up for his constituents?”

Allied Progress launched PaydayLendingFacts.org to expose the payday lending industry, combat misinformation, and provide the public with the truth about payday lenders and their allies in Congress. The website features hundreds of pages of easily accessible research.