Warner questions decision to rescind payday lending rule

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WASHINGTON (CBS19 NEWS) -- U.S. Senator Mark Warner had questions for the Director of the Consumer Financial Protection Bureau, Kathy Kraninger, during a Senate Banking Committee hearing on Tuesday.

His main focus was a Trump administration decision to rescind a rule that protects people, including Virginians, from predatory lending practices.

Under the rule, payday lenders must determine upfront whether or not a borrower can afford to pay back the loan without having to take out another one.

Unfortunately, this happens to many American facing financial hardships.

The rule was first proposed under the Obama administration and finalized in 2017 after more than five years of study and more than one million comments from people.

Last month, Kraninger proposed changes to the rule that Warner is now questioning.

"I respectfully remember how long this rule took to put in place. We remember how much research was done. I don't believe you've got a factual basis," said Warner. "I think this was a politically-driven decision. And I'm deeply concerned by your decision."

Last year, Warner raised similar concerns regarding a Trump administration decision to roll back the payday lending rule.

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