A 950% interest rate? It’s perfectly okay with the Trump-era CFPB.

Discussion in 'Politics, Religion, Social Issues' started by Thomas Veil, Feb 12, 2018.

  1. Thomas Veil macrumors 68020

    Thomas Veil

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    #1
    Jesus Christ. Be glad if you never crossed paths with this company.

    Oh, wait. It gets better.

    And for those who will inevitably say this was all Ms. Bonenfant’s fault...you’re right. In a way.

    It’s pretty sad. And another Trump voter learns the hard way.

    Full story
     
  2. hulugu macrumors 68000

    hulugu

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    Listened to that story this morning, and Bonenfant's comment that she felt betrayed was pathetic. Voting for a Republican while you have a lawsuit against a financial company runs against common sense. Of course, they're going to sack the lawsuit.

    Also, good reporting about how Mulvaney lied about CFPB's internal deliberations and his ties to the industry.

    A further sign that the Trump administration is run by swamp alligators.
     
  3. TonyC28 macrumors 65816

    TonyC28

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    Well that all sounds a bit messed up. What I don't get is why this Julie Bonenfant needs a government agency to sue this company for her. If they did something illegal or that conflicts with their contract with her then she should be able to pursue that lawsuit on her own. Those payday loan operations are all super shady.
     
  4. 0007776 Suspended

    0007776

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    I think the thought behind it is that the people who are falling victim to this type of scheme can’t afford the lawyers to be able to successfully argue the case.
     
  5. hulugu macrumors 68000

    hulugu

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    Because individual civil lawsuits against companies are very difficult, especially when the company may have followed the terms of the contract, but that the terms themselves are illegal or just incredibly shady.

    The CFPB had money and guns, so to speak.

    But, Republicans have hated the CFPB since its inception, largely because it was fully independent, and have worked hard to cripple it.

    So, it's no surprise that Mulvaney, who attacked the agency as a House member, is now crippling the agency as its head. (He's also in charge of OMB, and he's probably screwing that agency as well.)

    It's like putting a bank robber in charge of the vault.
     
  6. alex2792 macrumors 6502a

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    Personally, I think that payday loans should be banned period. However, people should really use common sense and look at the APR prior to signing any paperwork. With APRs way over 100%, you’re quite literally much better off loaning money from a local drug dealer.
     
  7. BeeGood macrumors 68000

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    So...she says she’s partially responsible because she should votes for Trump, not because she got into a financial product that she didn’t understand?

    Personal accountability, like chivalry, appears to be dead.

    I get that Mulvaney is pond scum and Trump put him there, but come on. If you put a Dem in charge of the CFPB, he/she wouldn’t have held this lady’s hand and explained to her what she was signing. These companies were a den of thieves long before Trump and will be that way long after he’s gone.
     
  8. 0007776 Suspended

    0007776

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    I’m not sure that they should be banned, but they definitely should be made to disclose exactly how much you will be paying. If you know what you are getting into then that’s your own fault for being stupid enough to take the loan, but if things aren’t clearly disclosed to you before it is too late then that is a problem.
     
  9. hulugu macrumors 68000

    hulugu

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    These companies tend to bury the APR and payments in a bunch of shady ways so that consumers may not have a clear understanding of what they're getting into. Generally, I agree that people should use common sense, but there also should be limit on how much a company can charge for a loan, payments of $3,735 for a $900 loan is fundamentally ridiculous.

    Well, a Democrat might have allowed the CFPB to pursue its case, but instead, Mulvaney and the Trump administration is giving that den of thieves succor.

    The question is did Bonenfant just not read the documents, or did Golden Valley pull a fast one?
     
  10. rjohnstone macrumors 68040

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    We had a big problem with payday loans in AZ a few years back. Believe it or not, the Republican controlled state legislature and our Republican Gov. passed a law to get rid of them.
    Payday loans are now illegal in AZ and ALL consumer loans have a 36% rate cap.
    The catch is lenders based on Indian Reservations, like the one in the article, are not bound by those laws.
     
  11. BeeGood macrumors 68000

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    I’m just not sure that it should be the federal government’s job to sue companies on an individual’s behalf. Where would we draw the line in terms of what causes FedGov should take up? Should they sue bad actors in the tobacco industry? Pharmacy comanies? The automotive industry? All industries have companies that take advantage of people.

    That’s a good question. She seems to indicate in the article that they mislead her and if they did, I believe they should be prosecuted under the Truth in Lending Act.

    But if she wants to file a civil lawsuit, that should be up to her.
     
  12. bradl macrumors 68040

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    And, unfortunately as it is, that is how it should be.

    Since the tribes are sovereign nations within the United States, they have to make up their own laws regarding those practices. They really do need to act on that, as no treaty with the US can deal with this, as the payday lenders are a private business. This is why they need to get off their arses and do something about it, otherwise the suffering will continue.

    BL.
     
  13. VulchR macrumors 68020

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    I know somebody who worked for a reputable UK bank answering customers' questions when they suspected their accounts were being emptied by fraudulent payment request. A shockingly high proportion of the calls this person took were about pay-day loans, and it was clear that people did not understand the terms. So far as I am concerned, those engaged in the pay-day loan business are lower than pond scum. There many laws I think should be passed in order to regulate them: specifying a reasonable maximum APR; specifying that the contract be readable by all who have secondary education; that a maximum payback amount be specified; and that methods of payment collection are reasonable (excluding acts like crawling through somebody's bathroom window to serve a notice of non-payment, which I know has happened in the UK (it's not illegal if the window is unlocked apparently)); etc.
     
  14. hulugu macrumors 68000

    hulugu

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    Well, maybe that's the point. The tobacco industry spent millions trying to make each and every lawsuit as costly and time-consuming as possible, but if Phillip-Morris knew that not only were they being pursued by people who can literally print money, but would have enforcement powers, they might have kowtowed earlier and admitted that cigarettes caused cancer.

    The fact that bad actors have tried to outgun regular consumers, even against class action lawsuits, is indicative of a serious problem. Maybe the federal government isn't always the best solution, but against large-scale financial firms, the CPFB was at least an attempt.

    That's exactly what the CFPB was doing. The lawsuit was filed by the bureau in U.S. District Court in Chicago against four companies owned by Habematolel Pomo of Upper Lake tribe, accused of violated the Truth in Lending Act.

    Because the companies are owned by a tribe, state officials will not be able to prosecute them, so you need a federal agency.

    The essential part is that the Bureau believed they had a case and that Golden Valley had violated the law, but that suit is being abandoned because Mulvaney is determined to take apart the bureau, piece by piece.
    --- Post Merged, Feb 12, 2018 ---
    In the case, CFPB was leading the suit against the Habematolel Pomo because the agency does have the ability to pursue creditors on the nations.

    If the FTC abandons this case, Golden Valley and three other companies will escape prosecution and the question should be: why is the head of the CPFB protecting them?
     
  15. 0007776 Suspended

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    I really don’t get why they get to have their own governments when it helps them make money like this, but also get to vote in US elections and be under US law when that is more convenient...
     
  16. BeeGood macrumors 68000

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    That’s a fair point. And maybe it’s the case that there really is no good solution since money will always get you better representation and an advantage in the legal system.
     
  17. bradl macrumors 68040

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    Answer for this lies in Article 6 of the Constitution, where all treaties are the Supreme Law of the Land. They were included as part of the United States per treaty (see various treaties for each tribe), as part of reparations to those tribes. Additionally, as they still have their own land ceded back to them, they remain their own sovereign nation within the US, so that allows them true dual citizenship; citizenship in their own nation (tribe), as well as citizen of the US, and Congress has to enforce that treaty.

    BL.
     
  18. hulugu macrumors 68000

    hulugu

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    Sure, but giant corporation versus government agency is like Rampage with lawyers, unlike corporation versus regular person, where the corporation buries you in filings, disclosures, and lawyers until you die or become bankrupt, whichever comes first.

    Unless you can get wrapped into a class-action lawsuit—which usually means dozens if not hundreds of complainants—and that takes years, if not decades.
     
  19. NT1440 macrumors G5

    NT1440

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    #19
    This country used to have usury laws, laws heavily backed by the churches of the country.

    But you know, capitalism is our god now...
     

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18 February 12, 2018