Leaked Audio Reveals How Payday Loans Lenders Are Trying To Prevent Regulation By Donating To Trump Campaign
01 Nov 2019
Approx Reading time: 3 minutes
- Michaels Hodges said in a webinar that payday lenders donating to Trump campaign could Capture the attention of white House
- Scrapping the CFPB will mean payday lenders will generate $7 billion from struggling Americans
- The new regulation will require lenders to ascertain if the consumer can manage to pay the loan before lending
On Tuesday the Washington Post reported that payday loans lenders recently held a webinar. The meeting aimed to discuss donating to president trump's re-election campaign. The payday loan lenders consider donating to the campaign as a way of buying influence and thwart proposed regulations.
Payday loan lenders boast about donating to Trump campaign to receive favors
Leaked audio of the September 24 webinar reveals how payday loans lenders are boasting about how their donations can get them access to White House. Advanced Financial founder Michael Hodges is heard boasting that when you want to speak to the administration you speak to through the campaign. Hodges boasted that he had contacted the Republican National Committee Chairwoman Ronna McDaniel seeking help. He says that Ronna managed to call White House explaining that one of the large donors of the campaign needed the audience.
Hodges said that the white house had been helpful on the Consumer Financial Protection Bureau. The CFPB regulation was designed to shield consumers from debt traps resulting from high-interest rates charged by payday lenders. The Trump administration almost scrapped the CFPB regulation through Kathy Kraninger. If the CFPB succeeds in doing away with the regulation payday loan lenders will easily generate up to $7 billion annually
This is however not a surprise that the financial industry would want to buy favors. It is an indication of the brazen corruption in the administration. This is a show of pay-to-play whereby money is invested in those in office.
Payday lenders wary of changes in regulations
The revelations open a window of how the payday loans lenders are attempting to circumvent tougher lending regulations through donations. The industry is waiting for new regulations that will loosen standards enacted during the Obama administration. One of the recommendations if for payday lenders to ensure consumers have the capability of paying money they borrow.
The payday loans lenders offer short-term loans to consumers but they charge exorbitant interest rates. There has been growing criticism about the lenders about them trapping consumers in debt cycles. As a result, consumers have to take loan after loan for them to manage to keep up with their payment plans.
Elizabeth Warren could be a threat to payday lenders
In the audio, the payday loans lenders also criticized democratic senator Elizabeth Warren calling a threat to the industry if elected. They called California Rep Maxine Waters a hater of their businesses. They however referred to President Trump as the ultimate backstop that will stop the regulations they consider detrimental to the industry. Borrow Smart Compliance's Max Wood even gloated that the election of Trumped tipped the scales in their favor.