Some 43 Democratic senators are blasting Acting CFPB DirectorMick Mulvaney's backtracking on the agency's payday lending ruleand enforcement.

In a letter, the Democrats, led by Sen. Richard Durbin (D-Ill.),said reconsideration of the payday lending rule and Mulvaney'sloosening of its enforcement are “antithetical to the CFPB'smission.”

At the same time, Sen. Lindsey Graham (R-S.C.) has introduced aresolution in the Senate to nullify the payday lending rule.

The CFPB issued rules in October to crack down on payday lendingthat lock borrowers into interest rates and fees that are so highthat they have to take out additional loans. The rules were issuedby former CFPB Director Richard Cordray, who was appointed byformer President Obama.

The rules exempted small-dollar loans modeled after the NCUA'sPayday Alternative Loan program.

When Cordray resigned to run for Ohio governor, President Trumptapped Mulvaney to serve as director until he nominated a permanentdirector.

Shortly after taking office, Mulvaney announced that the agencywill be revisiting the rule and delayed one deadline built into it.In addition, the agency has backed down from some investigations ofpayday lenders.

Those decisions have incensed Democrats.

“Research has shown that short-term payday loans trap consumersin high-interest debt for long periods of time and can result inserious financial harm, including increased likelihood ofbankruptcy,” the 43 senators wrote.

They said the agency's own research demonstrates the problemswith the loans.

“The majority of all payday loans are renewed so many times thatborrowers end up paying more in fees than the amount theyoriginally borrowed,” they wrote. “This predatory business modelexploits the financial hardships facing hard working families,trapping them into long-term debt cycles.”

While the Democrats are pushing for strict regulation of thepayday lending industry, some Republicans are going in the oppositedirection.

The House Financial Services Committee recently approvedlegislation that would exempt all banks and credit unions frompayday lending regulation. However, banking regulators, includingthe NCUA, would be required to develop guidelines for short-termloans.

In addition, Graham has introduced a resolution that simplywould void the CFPB's payday loan rule. The resolution wouldrequire a simple majority in both Houses and was introduced underthe Congressional Review Act, which allows Congress to nullifyagency rules within a specified time after they are released.

A similar resolution has been introduced in the House.