Federal Agency Caught Working With Progressive Activist Group To Create Policy
The Consumer Financial Protection Bureau has been working with a progressive activist group to create restrictive policy for payday lending companies.
Feds Colluded With Progressive Interest Group
Officials with the Consumer Financial Protection Bureau were in regular contact with progressive activists over proposed regulations targeting the payday lending industry, recently released emails reveal.
The communications, which came to light through a Freedom of Information Request, show regulators and activists cooperating for more than a year to draft and fine-tune regulations to tighten the availability of the small consumer loans.
The outside group identified as colluding with the feds, the Center for Responsible Lending (CRL), is a leading progressive activist group that has long targeted the payday lending industry. Founded by donations from Herb and Marian Sandler, pioneers of subprime mortgage lending, CRL has long lobbied for expanding bank lending in underserved areas and increasing regulations on existing financial services companies.
Politico has more:
Emails reveal consumer protection agency’s cozy ties
The agency has long been under fire from industry and conservative groups, including in an ad that aired during the Republican debate last week. CFPB’s collaboration with the Center for Responsible Lending on payday lending rules could fuel attacks that the agency has an anti-business bias.
For more than a year before CFPB put out its proposed rule to crack down on payday lenders, the Center for Responsible Lending and other advocacy groups, such as the National Consumer Law Center, worked with the agency to help craft the proposal, according to emails and documents released by CFPB to comply with a recent Freedom of Information Act request filed by the payday lending industry trade group Community Financial Services Association.
The emails between CRL and CFPB staffers document regular meetings and close collaboration.
Have these progressive groups ever faced scrutiny from the IRS like Tea Party groups did?
Don’t bet on it.