CFPB Leadership Structure Ruled Unconstitutional by D.C Circuit Court
This just in from Ben Lane:
“In a unanimous decision of the three justices of the United States Court of Appeals for the District of Columbia Circuit, the court ruled that the CFPB’s current structure allows the director to wield far too much power, more than any other agency in the government.”
‘Because the Director alone heads the agency without Presidential supervision, and in light of the CFPB’s broad authority over the U.S. economy, the Director enjoys significantly more unilateral power than any single member of any other independent agency,’ the court writes.
And it gets worse for the CFPB.
“From the court’s decision:By “unilateral power,” we mean power that is not checked by the President or by other colleagues. Indeed, other than the President, the Director of the CFPB is the single most powerful official in the entire United States Government, at least when measured in terms of unilateral power.
That is not an overstatement. What’s this mean for the Payday Loan Industry?
What about the Speaker of the House, you might ask? The Speaker can pass legislation only if 218 Members agree. The Senate Majority Leader? The Leader needs 60 Senators to invoke cloture, and needs a majority of Senators (usually 51 Senators or 50 plus the Vice President) to approve a law or nomination. The Chief Justice? The Chief Justice must obtain four other Justices’ votes for his or her position to prevail. The Chair of the Federal Reserve? The Chair needs the approval of a majority of the Federal Reserve Board. The Secretary of Defense? The Secretary is supervised and directed by the President. On any decision, the Secretary must do as the President says. So too with the Secretary of State, and the Secretary of the Treasury, and the Attorney General.
In short, the court writes, the director of the CFPB is the “single most powerful official in the entire U.S. Government, other than the President,” in terms of unilateral power.
Why do payday loan lenders take a beating by the media and the politicians so often? Because of organized campaigns like this one launched by the CRL. [Remember the Center for Irresponsible Lending? Founded by credit union and bank executives – think Wells Fargo – whose mission is to crush the payday loan industry so they can maintain their 2000% APR NSF fees?]
The CFPB has received over 170,000 positive payday loan testimonials from real borrowers. That’s great! We’ve done a good job with this. But our “system” for asking our happy customers to enter these positive stories on the CFPB website is CLUNKY, SLOW and CUMBERSOME.
Now, take a look at the CRL campaign to bury us:
The CRL makes it so easy. They send every Tom, Dick and Harry to this website. The negative payday loan commentary is already present in the comment box. All their sycophants have to do is enter a fake name, email address and zip code, hit “Submit” and the dirty deed is done! We eat it!
SMOOTH! SMART!! And EVIL!!!
Here’s their website: CRL EVIL WEBSITE
And, in case you didn’t submit a POSITIVE payday loan testimonial – which you should – here’s their EVIL “Thank You Page.”
Here’s what you need to do:
- Go to the CRL website
- Enter phony information like the CRL idiots do
- “Submit” your bogus info and share the Thank You page with friends, family and customers; like they do.
- Oh, and even better, write a simple positive payday loan “Template” testimonial for those with whom you share.
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PayDay Loan Ruling: Connecticut Sovereign Nation Status
The state of Connecticut’s banking department must decide whether to appeal a ruling that appears to allow an Oklahoma Indian tribe to continue to offer payday loans in Connecticut. The Otoe Missouri Tribal Nation brought a lawsuit claiming tribal sovereignty protects it from Connecticut usury rate enforcement, after the Connecticut banking department determined the Otoe Missouri Tribal Nation had violated state loan laws. The Otoe Missouri Tribal Nation offres payday loan products having interest rates of more than 400 percent APR’s. However, a superior court judge has found in the tribe’s favor saying “its rights have been prejudiced.”
And the beat goes on…
We all know that our U.S. government agencies lie, cheat and steal even more than our politicians do. After all, these agencies are made up of ordinary people.
So it comes as NO SURPRISE that the CFPB failed to honestly reveal that 98.5% of the puny total number of payday loan testimonials submitted by ordinary borrowers on the CFPB payday loan website portal were POPSITIVE about the payday loan product!
According to the CFSA, during the 5 years data has been made available, “12,308 comments (or more than 98%) of the 12,546 comments submitted on short-term loans praised the industry and its products and services, or otherwise indicated positive experiences. “
Thus the old saying, “Statistics can be made to prove anything.” Ofcourse, in this CFPB instance, the government agency simply lied. So… what’s new? Zip!
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