Posted on 01/09/2014 9:55:48 AM PST by Sir Napsalot
Breitbart News has learned that in 2013 the Obama administration launched an under-the-radar project, 'Operation Choke Point,' which is designed to destroy three sectors of the private lending industry: third party payment processors ("TPPPs"), payday lenders, and online lenders.
The operation is headed by political operatives and career bureaucrats at the Department of Justice, the FDIC, and the new Consumer Financial Protection Bureau ("CFPB"). It appears to be the latest example of the Obama administration's successful efforts to weaponize the apparatus of the federal government against people and industries it opposes ideologically.
According to the Wall Street Journal, the federal initiative now known as 'Operation Choke Point' is an outgrowth of the President's Financial Fraud Task Force, established by President Obama by Executive Order in 2009. It also appears to have been kicked off in secret by the Department of Justice, FDIC, and the CFPB in early 2013 without the requisite statutory authority.
(snip)
On August 22, thirty-one members of Congress sent a letter to Attorney General Eric Holder and FDIC Chairman Martin Gruenberg , requesting a briefing .......
"We are especially troubled by reports that the DOJ and FDIC are intimidating some community banks and third party payment processors with threats of heightened regulatory scrutiny unless they cease doing business with online lenders," the letter read. "As a result, many bank and payment processors are terminating relationships with many of their long-term customers who provide underserved consumers with short-term credit options," it continued.
(Excerpt) Read more at breitbart.com ...
But why the 'under-the-radar' procedure? Less they become the normal sop by Obama. (yeah I know, sarcasm)
100% agree. Have you ever read the fine print on those title loans and payday loans? I went in to get an application to use an example in my personal finance class. Some are upwards of 300% APR. Legalized loansharking.
Bump
Nope.
This about the bigger banks using the force of government to gain a bigger share of the sub-prime and sub, sub below that markets.
Wall street and Wilmington, DE are being rewarded with crony legislation
How about the government just stay out of private financial agreements?
Deputy Assistant Attorney General, Consumer Protection Branch
Maame Ewusi-Mensah Frimpong
Limited search reveals nothing...
Does anyone know @ this? Where is she from?
‘zackly.
They are also targeting gun purchases through bank consolidation.
This about the bigger banks using the force of government to gain a bigger share of the sub-prime and sub, sub below that markets.
Cronyism: the Chicago way.
Sounds like a Nigerian name
The problem is that they’ve also targeted private money lenders like those who lend for purchase and renovation of “flip” properties. That’s an arms-length secured transaction between a real estate investor (the flipper) and a private person who will make 5-12% on a one-year or less note, secured by the property to be rehabbed, yet the PMLs are having to get licensed as lenders. Pushed, those of us in the reno/resale industry believe, by the large lenders because they’re being cut out of the pie.
If this is worth doing, it is worth doing through legal means, i.e., laws passed by Congress & signed by Der Leader.
No financial institution is going to loan a dime to these people.
The only way that these people can get a loan is through a private lender, and at least the payday people weren’t breaking kneecaps. The worst they could do was send someone to collections.
Thomas Sowell, BTW, was fully in favor of payday loan providers.
I’m sure Obama hates those people too -
trying to garner some wealth without going through the “proper channels”.
When you read further into the article, you’ll see that it was a competitor of the payday loan industry that pushed for the rules resulting in crushing payday lenders.
I’m really torn here. Do I side with Narcissistic Communist Dictator or the scum-sucking slime weasels?
I got noes problemo with these institutions.
I do take issue with people who “act” like they are”didn’t know” these companies were going to charge all these fees and interest rates.
And I hate this effin phrase from friends who are intellectually bankrupt and moral reprobates:
“It’s scandalous!”
No, Stoopit. You Are a moron, an idiot and an outright liar.
Your house burned down? FU Pay me.
Your kid needs a spleen? FU Pay me.
FU PAY ME, PAY ME, PAY ME!!!!
Get yer shoe shine box .....
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.