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House Set To Pass Bill To Give Predatory Lenders ‘Free Pass’ To Harm Working Families, Bring Back Financial Crisis

Thursday, June 8, 2017
Yana Miles

Wrong Choice Act eviscerates consumer protections and eliminates safeguards to prevent another Great Recession

WASHINGTON, D.C. – Later today, the U.S. House of Representatives is expected to pass H.R. 10, the so-called Financial Choice Act, an extreme measure that would roll back Dodd-Frank. This radical bill, dubbed the Wrong Choice Act, would expose American families to risky financial practices that were the primary culprits of the 2007 financial crisis and the ensuing Great Recession. The legislation severely obstructs the work of the Consumer Financial Protection Bureau (CFPB), an agency that has returned nearly $12 billion to 29 million Americans harmed by the illegal and predatory actions of financial companies. The Center for Responsible Lending (CRL) opposition letter (PDF) details the many dangerous aspects of the bill.

CRL Senior Legislative Counsel Yana Miles released the following statement:

This bill puts big banks and predatory lenders back in charge of our economy. Dodd-Frank and the creation of the Consumer Financial Protection Bureau has created a fairer financial marketplace for consumers and has kept financial institutions accountable to the public. This basic accountability is especially important for low-wealth families and communities of color who were hit hardest by the financial crisis.

The Trump Administration’s recent support of this bill contradicts the president’s promise to drain the swamp and protect people from bad financial practices on Wall Street. Instead of giving free passes to loan sharks like payday lenders, Congress and the president should make consumer protection a top priority. CRL and communities across the country--including veterans, faith leaders, consumers, and others--will fight the Wrong Choice Act at every turn and continue to stand up for economic justice and inclusivity.

For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Ricardo Quinto at ricardo.quinto@responsiblelending.org.