Tag: payday lenders

Trump Appointees Revive Payday Lending To Exploit Newly Unemployed

New unemployment claims reached 22 million on Thursday while the Trump administration is helping banks and financial institutions fleece out-of-work Americans and those who could lose their jobs because of Trump’s pandemic.

The Consumer Financial Protection Bureau, the agency set up to protect consumers but has been neutered by Trump and other financial agencies, are telling banks they can practice “responsible small-dollar lending” or payday loans in areas affected by the coronavirus.

“This is the worst possible time for banks to make predatory payday loans,” said a group of consumer organizations including the National Consumer Law Center and the NAACP. “Government regulators have opened the door for banks to exploit people, rather than to help them.”

Payday lenders discussed raising money for Trump’s campaign to fend off regulation, audio reveals

Washington Post logoTo ensure Democrats don’t block weaker industry rules, payday lenders said they needed access to Trump.

Billing himself as one of President Trump’s top fundraisers, Michael Hodges told fellow payday lenders recently that industry contributions to the president’s reelection campaign could be leveraged to gain access to the Trump administration.

“Every dollar amount, no matter how small or large it is” is important, Hodges, founder of Advance Financial, one of the country’s largest payday lenders, said during a 48-minute webcast, obtained by The Washington Post.

“For example, I’ve gone to Ronna McDaniel and said, ‘Ronna, I need help on something,’ ” Hodges said, referring to the chair of the Republican National Committee. “She’s been able to call over to the White House and say, ‘Hey, we have one of our large givers. They need an audience. … They need to be heard and you need to listen to them.’ So that’s why it’s important.”

View the complete October 29 article by Renae Merle on The Washington Post website here.