FOR IMMEDIATE RELEASE
Thursday, February 7, 2019
TRUMP TO LET FOXES GUARD THE HEN HOUSE
A statement by Rev. Jesse L. Jackson, Sr.
The Trump administration’s latest sellout of the American people is a directive to deregulate and convert the Consumer Financial Protection Bureau (CFPB) from an agency that protects consumers to one that protects financial exploiters. Twelve million Americans, disproportionately poor, young and people of color, use payday lenders that charge interest rates averaging 400 percent. President Trump proposes to eliminate the regulations governing payday lenders. He’s proposing to let foxes guard the hen house.
The CFPB was the creation of Harvard Professor (now Senator) Elizabeth Warren and became law in 2010 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Its simple mission and rules are federal protection of consumers from financial exploitation by banks, credit unions, security firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial operators.
But on Wednesday the Trump administration unveiled a plan that will gut regulations protecting consumers and instead will move the CFPB in the direction of protecting financial exploiters. The result will be to put our most vulnerable citizens deeper into a cycle of debt. The result will be that the victims of predatory payday and other abusive business lenders will again be widespread.
Consumers must protest and resist legally this change because borrowers, especially the most vulnerable borrowers, must not be made more vulnerable to economic exploitation. The mission of the CFPB to protect consumers under the Obama-era rule that required payday lenders to certify their borrowers have the financial ability to repay the loan must be upheld, not undermined in order to give a break to loan sharks.
Rainbow PUSH Coalition is a multi-racial, multi-issue, progressive, international organization that was formed in December 1996 by the Reverend Jesse L. Jackson, Sr. through merging of two organizations he founded Operation PUSH People United to Serve Humanity (estab. 1971) and the Rainbow Coalition (estab. 1984). With headquarters in Chicago and offices in Washington, D.C., Atlanta, Detroit, Houston, Los Angeles, New York and Oakland, the organization works to make the American Dream a reality for all citizens while advocating for peace and justice around the world. RPC is dedicated to improving the lives of all people by serving as a voice for the voiceless. Its mission is to protect, defend and gain civil rights by leveling the economic and educational playing fields while promoting peace and justice around the world.