With CFPB Director Suggesting New cash advance Restrictions, If Approved, Americans May End up without Any Access to Credits

Richard Cordray, the director of Consumer Finance Protection Bureau or CFPB, has met with the House Democratic Lawmakers on Wednesday, after having met with a collection of far-left interest groups in recent months. If the rumors are to be believed which are definitely the results of this meeting with the House Dems, Cordray is planning to run for the governor of Ohio. Being accused of running a wretched federal agency and acting unlawfully by the Republican lawmakers before, Republicans has even requested the White House to fire Richard Cordray. After all, as per the rumors, Cordray’s new cash advance restrictions may create a debacle in the American’s credit access.

According to the representative, Jeb Hensarling, Richard Cordray should be dismissed by President Trump, not only for conducting unlawful activities but also for denying the market participants the due process and abusing the authority bestowed upon him. He also added that both CFPB and its director, Cordray, had not only acted as a cop on the beat but also as judge, prosecutor, jury, and legislator, all rolled into one.

Though it was reported in February that White House was considering its options; however, they were held back due to a number of political and legal hurdles. Being an independent agency, the President can only fire Richard Cordray for his neglect of duty, malfeasance, and inefficiency. A circuit court in Washington D.C. had ruled in October that the protection for the CFPB’s director’s job and the structure of CFPB were unconstitutional. However, later this month, an appeals court has agreed to rethink the ruling of the D.C, court, which would repeal the job protection of Cordray’s.

However, Cordray may be aiming for another job, which is entering the Ohio gubernatorial race 2018, once his term gets over next year if rumors are to believed. His recent meetings with the far-left activist groups and the Democratic lawmakers are providing fuel to such rumors for sure.  As per the spokesman, at the meeting with the House Democratic Caucus, on Wednesday, CFPB gave the Breitbart News of Cordray’s about to happen meeting with the Republican conference.

On March 9, The CFPB director and his staff met with several groups, such as the representatives of John Podesta’s Center for American Progress, the National Council of La Raza and Americans for Financial Reform to discuss the rule on payday lending, proposed by CFPB. And in the last April 10 meeting, that was attended by the representatives of the Center for American Progress, Americans for Financial Reform, Virginia Organizing, Progress Virginia, and another spinoff group called Our Revolution from Sen. Bernie Sanders’ presidential run along with the staff of the director of CFPB, Cordray was not present.

As per the reports, it is only to discuss the regulation on payday loans that both the meetings of March and April were called. All the groups that were involved in the meeting had supported the repression of the CFPB regulation, on the basis of the argument that that was nothing but a debt trap and simply predatory. According to the other groups, this rule proposed by CFPB would not only impose various restrictions but also would limit the payday lending practice, leaving many without any access to credits. This rule would increase the requirement for the payday lenders to determine the eligibility of the borrowers about whether they would be able to pay back their loans or not.

Though CFPB had kept the rule open for comments between the month of July and October in the previous year, but has failed to keep a proper track of all the comments on the cash advance regulation proposed by them. If the reports are to be believed, only approximately around 200,000 of a million comments had been kept in track and uploaded. However, the majority of the uploaded comments appear to be strongly against the new payday loan regulation.

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