The Consumer Financial Protection Bureau (CFPB) needs to be reformed whether Hillary Clinton or Donald Trump wins this fall. They are now in the process of passing on a new rule that will hurt the very people it is supposed to protect. Middle and low income Americans are sometimes in need of small-dollar short-term loans and the CFPB’s new rule would create a massive new paperwork burden that will deter consumers from taking loans and discourage online lenders from accepting loans for fear of violating the existing rule – then getting sued.
Insiders on Capitol Hill view the CFPB with skepticism, because they don’t answer to Congress. The Dodd-Frank law set them up with a funding stream that is not reliant on Congress. This puts them in a position where they don’t have to answer to anybody and they can issue rules and regulations with little recourse from the American…
