Mick Mulvaney at the CFPB wants to lean on State regulators like the OCCC
One popular counter to the CFPB and it’s regulation of the payday industry is that oversight should be shared with, or even shifted more so, to State regulators versus the much maligned federal agency.
In the case of Texas, that means our friends at the OCCC would be that ideal option. The highly experienced leadership at the OCCC has been overseeing various consumer lending industries for decades. This agency without a doubt is much more qualified to license, regulate, and examine Credit Access Businesses offering cash advances, installment loans, and auto title loans to Texas residents.
For years many small business owners, clients of CAB Consulting, and Members of the Texas Organization of Financial Service Centers have wondered what the CFPB truly knew about the payday industry, other than what was told to them by consumer advocacy groups who despise the industry. Then, when the CFPB Payday Loan Rule was finally released, it was again evident that that CFPB knew nothing about the industry, other than they wanted to kill it! Just like many “CABs” in Texas, Mick Mulvaney wants to shift the responsibility in the direction of State regulators.
Here is a quote from a recent article written by Joann Needleman and Timothy Lee, of Clark Hill:
“At a recent gathering of states attorneys general, Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) indicated his preference that they take the lead on the enforcement of consumer protection laws along with state regulators. According to Acting Director Mulvaney, “States know best how to protect their own consumers.”
