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Trump Sides With Payday Lenders Preying On Poor In Red States | The Beat With Ari Melber | MSNBC - YouTube

Channel: MSNBC

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now to our special report tonight on

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policy and profiteering in the Trump era

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Congress is already probing the

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potential corruption in Donald Trump

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pushing his own Florida hotel to host

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the next g7 summit

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it's another in a string of examples of

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Donald Trump trying to profit off his

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government job industry groups have also

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been following Trump's lead our report

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tonight focuses on an industry that's

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gotten quite a bit less attention and

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other issues these days payday lenders

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and their lobbyists have spent a million

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dollars at Trump's Doral resort for

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their annual conferences sending profits

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to Trump with the tab featuring steak

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and shrimp entrees at an open bar and

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Doral has a bottle of Trump sparkling

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wine from Monticello that goes for $18 a

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glass

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now these payday lenders aren't just to

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use maybe a new phrase partying like

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bill bar which is when you spend money

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at a Trump Hotel to impress Trump

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they're also getting money thanks to

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Trump policies and that's the important

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part of this special report let me walk

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you through this the very month before

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these lobbyists convention at Doral a

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Trump official running a key consumer

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protections Bureau gutted regulations

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that protect consumers that could

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protect most Americans from potential

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abuse by these same payday lenders they

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ended a rule that restricts payday

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lenders from preying on people who can't

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afford their loans in the first place

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the Trump administration also backing

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lenders in a lawsuit gunning for many of

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those same protection rules now this is

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all about how these companies their

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financial institutions target vulnerable

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lower-income people who are desperate to

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get money fast when we say money in time

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we mean money when you need it put up to

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ten thousand dollars in your bank

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account by tomorrow based on trusting

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you with no security of any kind just

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your signature where money really does

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grow on trees but it doesn't grow on

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trees you could say it falls from trees

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along with some very heavy burdens for

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paying that money back which is why as

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you may remember remember then professor

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Elizabeth Warren proposed a bureau to

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protect against exactly this kind of

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abuse

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and then President Obama embraced it

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millions of American families are

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hemorrhaging money right now today and

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tomorrow and next week on tricks and

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traps and credit products we're gonna

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fix that the Consumer Financial

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Protection Bureau will be a watchdog for

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the American consumer charged with

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enforcing the toughest financial

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protections in history now that was the

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bureau the president obama tasked Warren

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to run Republican senators though

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blocked her nomination which actually in

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a footnote to history it freed up her

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time to run for office where she

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defeated a Republican senator and paved

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the way for her current presidential

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campaign as a side note it's won Mitch

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McConnell strategy that totally

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backfired on him but meanwhile on these

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policies you have the Trump

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administration trying to limit that same

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Bureau that Warren helped create from

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continuing this work that Warren and

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Obama and other experts said is so vital

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to protect so many Americans now this

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problem there's no partisan colors

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payday lenders prey on people in states

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red and blue

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they've set off debt cycles for most

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consumers because about 80 percent of

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these loans basically roll over and

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force new costs on the borrowers now

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about 20 states already have made the

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most abusive payday loans illegal 12

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million Americans still get caught up in

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them though and the huge fees go back to

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these lenders to the tune of 5 billion

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dollars now big picture this is a

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classic test of whether the law protects

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you regardless of how much money you

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have now Warren has a view here she

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argues these lenders shouldn't even be

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allowed to loan out what they know

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people cannot afford to pay back

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basically the argument is they're using

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their financial power to trap you

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potentially in loan fees that are larger

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than the original loans that people even

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ask for like so many Americans breacher

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Mary love knows what it's like to be

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tight on cash so when she started to

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fall behind on her rent

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she went for quick fix things quickly

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spiraled out of control she says she

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couldn't repay the loan because the

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interest rate was far too high for her

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on her 400

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alone she ended up paying 1420 dollars

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in interest alone about a year later

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that's more than 300 percent three times

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what she first borrowed that's also not

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fair you don't need to be a financial

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expert to understand the experts know

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what they're doing they're taking

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advantage of people who sometimes don't

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this is the key part this is what makes

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payday loans so dangerous even a small

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what they call principal with this crazy

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high interest rate adds up very quickly

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and because these terms are basically

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hidden in formulas laid out in all kinds

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of tricks like counting weeks instead of

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years well people get confused now this

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is a trick that Democratic congresswoman

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Katey Porter Illustrated when she was

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grilling Donald Trump's very own pick to

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lead this Bureau if you could even

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ballpark on a $200 loan for a term of

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two weeks with a twenty dollar

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origination fee and a rate of ten

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dollars per 100 that is 10% ballpark

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what is the APR and I'm telling you that

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the APR Kelly's gotta know his is a math

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exercise and they question but it's a

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the Clinton and am I going to pay off

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the term reclaiming my time

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they take that us to a know that you

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cannot do the calculation I know that

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you can't do the calculation that little

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moment actually went viral because the

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question exposes the problem if the

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experts or Trump's appointee can't even

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say how these loans work then maybe it's

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not fair to trap people in them and then

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threaten them with bankruptcy for

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something lenders shouldn't have pushed

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in the first place now this Protection

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Bureau is supposed to patrol that kind

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of abuse and it did under the obama

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director it got results

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taking 43 million dollars a week back

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from those financial interests and

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plowing towards consumers that's a

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figure that absolutely crashed by over

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90 percent now that trumps director is

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in charge the difference there well it's

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over 40 million dollars that's what

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these payday lenders are celebrating at

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Trump's resort and what's a few hundred

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thousand dollars

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fees and an $18 glass of sparkling Trump

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wine in comparison to the millions these

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groups are now saving getting back

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earning under Donald Trump's policies

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protecting them this is a sorry scene it

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is literally millionaires celebrating

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money they extracted from some of the

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poorest Americans through tricky loans

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that shouldn't have been offered in the

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first place and that is what the swamp

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looks like when it has no shame hey I'm

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already Melbourne from MSNBC you can see

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