Mulvaney supports, and received donations from, payday lenders
The former South Carolina Congressman has been critical of the CFPB’s recently finalized rule to rein in small-dollar lending. He has also received significant financial support from that industry while he was in Congress.
Advance America, a Spartanburg, S.C., payday lender, contributed $4,000 to Mulvaney for Congress in 2016. The Ohio-based lender Checksmart contributed the maximum $5,000, as did the Community Financial Services Association of America and Financial Service Centers of America, which both represent payday lenders.
While sparring with CFPB Director Richard Cordray in 2015, Mulvaney criticized the bureau for overreaching and eliminating a product that some people can manage when caught in a cash crunch.
“Some people can use these facilities without getting caught in a debt trap,” Mulvaney said. “Mr. Cordray, that when you make a facility, a tool, something unavailable entirely that you're making the consumer's decision for them as to that facility.”
His comments suggest Mulvaney could seek to delay or ease the payday lending rule before it is fully implemented.