Payday lenders plan second conference at Trump National Doral Miami after deregulation
Historically, the Community Financial Services Association of America (CFSA), a trade group that represents and lobbies on behalf of payday loan companies, has held its annual conference in California. during odd years. But this year, the organization plans to hold its 2019 event at Donald Trump’s golf resort in Doral.
Watch groups think this is no coincidence.
“We see this as a clear conflict of interest,” says Sekinah Hamlin of the Center for Responsible Lending. “Previously they did not meet at his resorts, but it turns out that once he became president, they started to meet at his resorts. We don’t think it was a fluke, and we think it was is a slap in the face for American families. ”
The payday lending industry has long been criticized for its high interest rates and other predatory business practices. Research has shown that many companies consolidate their stores in low-income and minority neighborhoods and target clients who have virtually no means of repaying loans.
When the CFSA first held its conference at the Trump National Doral Miami last year, industry bigwigs were actively lobbying the administration to rescind the consumer protection rules. Obama era that hurt payday loan companies. Critics, including Hamlin, stated that the arrangement made the appearance of a paid game.
“The payday lenders take the money they stole from hard-working families and give it to the president to make sure he pays it off,” Hamlin said. New times Last year.
Almost at the right time, the Trump administration responded in kind. Earlier this month, the Federal Bureau for Financial Consumer Protection announced plans to rescind the rules, which would have required payday lenders to verify a borrower’s ability to repay the loan before making a cash advance.
For now, deregulation is not yet law. The proposal still requires a 90-day comment period, which means there is still time for the public to object.
“It’s bad for families, and it’s not fair,” says Hamlin. “We want to make sure it comes to the surface.”
The CASA conference is scheduled to take place March 18-21.
“The place is popular with our members and it meets our needs” CEO Dennis Shaul told The Associated Press.