KATHY KRANIGER….That is a name that Payday Loan borrowers won’t soon forget…Appointed by Donald Trump to replace Mick Mulvaney, interim director of the Consumer Financial Protection Bureau, she was narrowly confirmed by the senate in a 50 to 49 vote.
Before her nomination, she was pretty much an unknown in DC. She last served as associate director at the Office of Management and Budget, controlling a quarter-billion-dollar budget inclusive of seven cabinet departments including the Department of Justice. She has no formal experience in Consumer Financial Protection.
The CFPB was formed in 2011. Its mission was to protect consumers who were taking on any new financial obligations including but not limited to loans, mortgages credit cards, and Payday Loans.
Kraniger is the new permanent director, taking over the job from interim Director Mick Mulvaney. Mulvaney was a Trump appointee. The CFPB has always been an agency with problems and these problems became clear and controversial during the Trump, Mulvaney era.
Upon his appointment Mulvaney called the CFPB a “sick sad joke” and sweeping changes ensued. One of Mulvaney’s reforms was to relax restrictions on payday lenders. Many people feel that Kraniger as a Trump appointee will continue the agenda of Mick Mulvaney opening the doors for the Payday Loan industry to continue charging exorbitant interest rates, penalties, and fees.
In 2014, the CFPB determined that approximately fifty percent of all Payday Loans end up becoming ten loans long, constantly rolling over at the Borrowers expense.
Democrats fear this practice will continue under the Leadership of Kathy Kraniger.