CFPB chief dilutes penalty against payday lender: sources

WASHINGTON (Reuters) – Mick Mulvaney, the top cop for U.S. consumer finance, on Wednesday fined a payday lender $200,000 for wrongly hounding borrowers but the penalty fell short of the $3 million his predecessor was seeking, said three sources familiar with the move.

FILE PHOTO – Office of Management and Budget Director Mick Mulvaney testifies before the House Appropriations Subcommittee on Financial Services and General Government on Capitol Hill in Washington, U.S., April 18, 2018. REUTERS/Aaron P. Bernstein

Cash Express LLC operates more than 300 storefront lenders in southern states and the company ran afoul of federal consumer protection laws when it went to collect, the Consumer Financial Protection Bureau (CFPB) said in a settlement announced on Wednesday.

But while Mulvaney allowed the company to pay a $200,000 penalty his predecessor, Richard Cordray, had wanted to fine the lender $3 million for abusing customers, said the sources.

Reporting By Patrick Rucker and Pete Schroeder in Washington; Editing by Chizu Nomiyama

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