Quote Originally Posted by Dallas Tex View Post
Yet stood by silently as public universities have duped millions of teenage college students out of billions in debt? And apparently the CFPB has not succeeded in addressing the predatory lending industry's abuse of the legal system. I'm definitely not impressed.
I'll take a stab at this.

CFPB did not succeed at everything, but it was making headway. For example, in 2010, for-profit education was roughly 12% of the student population, 25% of pell grants and student loans, and 44% of defaults. This was one of the reasons the Obama administration starting focusing on the issue.

As all things, the problem is complex, and because of intense lobbying from the industry difficult to legislate away. Student loans are tricky because it also involves the Department of education. So if DeVos decides to appoint a for-profit lobbyist as the agency head in charge of overseeing for-profit colleges and loan forgiveness problems, there may be inherent conflicts of interest.

As for predatory lending, there is a lot of whack a mole here. Financial firms are very good at finding and exploiting regulatory loopholes. So whack on mole, it just pops up somewhere else. For example, just read up on John Reddam who started Ditech in the 90's. Jerry Brown characterized his loan collection techniques as loan sharking.

Ditech was sold and since has gone bankrupt. He has formed a new company CashCall which again is payday. To get around interest rate caps and other restrictions, he went through a sham corporation set up on native america lands to lend through and claim sovereign immunity from state laws.

CFPB Sues CashCall for Illegal Online Loan Servicing | Consumer Financial Protection Bureau

I think the CFPB was making headway which is why certain industries lobbied so hard to get rid of it.