Things are heating up between the two wings of the Democratic party as on Thursday, federal regulators put into place rules which threaten to overturn the payday-lending industry that has been bitterly debated between Senator Elizabeth Warren and DNC chair Debbie Wasserman Schultz.
Wasserman Schultz, playing her common role as the villain of the Democratic party, has spoken up in favor of the payday-lending industry repeatedly, opposing Warren’s oversight committee which seeks to regulate the blood-sucking industry.
Meanwhile, Warren has continued to stand up against the loan sharks, encouraging the government to retain the Consumer Financial Protection Bureau in the face of attackers who wish to weaken the bureau’s reach.
Thursday’s decision was a decisive victory for Warren as the rules put into place will go a long way in protecting low-income individuals from the companies and help put a stop to the debt trap.
The rules will require that individuals seeking short-term loans must provide proof that they can pay the loan back without obtaining another loan to cover it. The rules will also limit how often consumers can get payday loans.
Wasserman Schultz responded to the rules by saying that she was on-board all along, but the rest of us know better. Just like the establishment folks above her, Wasserman Schultz’s deep ties with corporate industries colors everything she does and this is no exception.
