Payday Lenders' Political Contributions Fuel Efforts to Undermine Consumer Protection Measures
Payday lenders and banking industry groups regulated by the Consumer Financial Protection Bureau (CFPB) have donated millions of dollars to the Republican Attorneys General Association (RAGA), which is backing a Supreme Court case seeking to eliminate the CFPB. Despite Republican voters' support for regulating payday lending, Republican officials in over 20 states are supporting industry groups in the lawsuit. The case challenges a rule aimed at protecting borrowers from payday lenders. The donations to RAGA raise concerns about the influence of campaign contributions on efforts to regulate predatory lending. The Supreme Court is set to hear oral arguments in the case on October 3.