A growing number of congressional Democrats are challenging the new financial oversight agency championed by President Obama and Massachusetts Sen. Elizabeth Warren, cautioning against its latest proposed rules for payday lenders that could hurt consumers.
The U.S. Consumer Financial Protection Bureau, the newest federal agency, proposed new rules this spring that seek to regulate payday lenders frequently used for banking services by minorities, the poor and the elderly who need short-term emergency loans.
Mr. Obama and Ms. Warren have accused the payday lending agency of engaging in predatory lending and seek to impose sweeping regulations across all lenders.
But a growing number of Democrats, including Florida Rep. Debbie Wasserman Shultz who heads the Democratic National Committee, are challenging the new rules as a bad example of a “one-size-fits-all” policy that will limit consumers’ banking choices.
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