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Lawsuit Seeks to Expose Former CFPB Director’s Ties to Payday Lending Industry

Washington, DC (April 22, 2019) – Today, the Lawyers’ Committee for Civil Rights Under Law filed a lawsuit in U.S. District Court for the District of Columbia against the White House Office of Management and Budget. The lawsuit seeks the release of public records related to OMB Director Mick Mulvaney’s ties to the payday lending industry after his office failed to respond to a Freedom of Information Act  request made several months ago.

“Director Mulvaney’s decision to roll back consumer protections for low-income borrowers in America is a prime example of regressive policies that harm consumers across the country, particularly African Americans and other communities of color,” stated Kristen Clarke, president and executive director of the Lawyers’ Committee for Civil Rights Under Law. Clarke continued: “We know that Mr. Mulvaney previously accepted large campaign contributions from key points of contact in the payday lending industry as a member of Congress, and the American people deserve to know if their influence had anything to do with his decision to undermine anti-discrimination enforcement or roll back regulations preventing predatory lending. The law requires the White House to disclose any records relating to Mulvaney’s communications with industry lobbyists. Through our litigation we are fighting to promote transparency during an era in which CFPB, OMB, and other agencies have increasingly concealed information to keep the public in the dark.”

After taking over the CFPB last year, while also keeping his role at OMB, Mulvaney immediately moved to roll back rules protecting low-income payday loan borrowers. The CFPB had enacted these new rules after years of careful study of the predatory harms of payday lending, including how such loans are targeted to communities of color. The Lawyers’ Committee filed this FOIA request with OMB to determine whether Mulvaney improperly used his White House office to discuss his regulatory actions with industry representatives.

Read full complaint here

About the Lawyers’ Committee for Civil Rights Under Law

The Lawyers’ Committee for Civil Rights Under Law, a nonpartisan, nonprofit organization, was formed in 1963 at the request of President John F. Kennedy to involve the private bar in providing legal services to address racial discrimination. Now in its 56th year, the Lawyers’ Committee for Civil Rights Under Law is continuing its quest to “Move America Toward Justice.” The principal mission of the Lawyers’ Committee for Civil Rights Under Law is to secure, through the rule of law, equal justice for all, particularly in the areas of criminal justice, fair housing and community development, economic justice, educational opportunities, and voting rights.

Contact
Reynolds Graves, Lawyers’ Committee, RGraves@LawyersCommittee.org, 202-662-8375