The Trump administration is planning to suspend routine examinations of lenders for violations of the Military Lending Act, which was devised to protect military service members and their families from financial fraud, predatory loans and credit card gouging, according to internal agency documents.
Mick Mulvaney, the interim director of the Consumer Financial Protection Bureau, intends to scrap the use of so-called supervisory examinations of lenders, arguing that such proactive oversight is not explicitly laid out in the legislation, the main consumer measure protecting active-duty service members, according to a two-page draft of the change.
The agency’s move comes as a Senate committee prepares to vote on the nomination of Kathleen Kraninger to succeed Mr. Mulvaney as chief of the consumer watchdog, which is responsible for protecting consumers from financial abuse.
The proposal surprised advocates for military families, who have urged the government to use its powers to crack down harder on unscrupulous lenders. The consumer bureau conducted dozens of investigations into payday and other lenders during the Obama administration without any significant legal opposition, and no lenders are currently challenging its oversight based on the law, according to administration officials.
Look, many people have fought for the sacred liberty to be ripped off by usurious lenders.
Betsy De Vos is also involved in the swamp-clearing:
The U.S. Department of Education has officially proposed repealing the gainful-employment rule, a policy that punished higher-education programs whose graduates accumulated excessive student-loan debt, according to a notice of proposed rulemaking released Friday.
The rule, first proposed by the Obama administration in 2011, would have penalized programs if their graduates had student-loan payments that exceeded a specific percentage of their incomes. It was controversial from Day 1, especially among for-profit colleges, who pointed to analyses arguing that the sector would be disproportionately affected.
The rule has had a checkered history. In 2012, part of the rule was scrapped by a federal judge. The rule was later revised and took effect in 2014, but that change was put on hold last year by the Trump administration’s education secretary, Betsy DeVos.
Last month, The New York Times and The Wall Street Journal reported that DeVos, who has led the department’s rollbacks of other Obama-era regulations that aimed to protect consumers who felt defrauded by for-profit colleges, would scrap the rule. (Experts had speculated that she would merely weaken it.)