Research

The Problem SB 1275 Addresses Foreclosures Continue at Record Pace: The foreclosure crisis continues to rage in California, with little sign of easing in the near future. Nearly 200,000 foreclosures were completed in California last year, and are on pace to exceed that number in 2010. At the same time, the main federal loan modification program (HAMP) has produced fewer than 48,000 permanent loan modifications in California. Borrowers Experience Alarming Level of Problems with Their Servicers: Borrowers, housing counselors and attorneys throughout the State report that they regularly face...

The current financial system has left America's families, its military, its community banks, and its responsible auto dealers unprotected from the minority of dealer-lenders who sell unfair auto loans with hidden fees. Such practices can tarnish the reputation of the entire industry. Exempting irresponsible dealers would help Wall Street at the expense of America's families and honest dealers and lenders. As President Obama said in a speech on financial reform on April 22, 2010, "unless your business model depends on bilking people, there is little to fear from these new rules." "You have an...

Auto dealers are heading to Capitol Hill seeking a special carve-out from the "Restoring American Financial Stability Act of 2010" (S. 3217), which aims to put an end to the reckless practices of Wall Street and the abusive and discriminatory tactics by finance companies of all stripes. In their search for a loophole, auto dealers claim that the bill will restrict affordable car loans and result in a hike in fees. [1] However, their arguments ignore key facts about the bill and how new rules governing consumer finance would work. It is time to set the record straight. The auto dealers say: We...

Four Tips to Rid Yourself of Credit Card Debt Sooner and Save Money The CARD Act of 2009 has provisions that enable borrowers to pay down their existing credit card debt sooner, save money in future interest, and improve their credit score. These key protections took effect on February 22, 2010, and have forced credit card issuers to reform the complex way card payments are credited to individual accounts. CRL advises Americans to: Pay above the minimum amount due. Paying more than the minimum can save you as much as $2 for every extra $1 you pay. For example, before the CARD Act, paying $100...

What the CFPB Really Means for Washington and Americans 1. Myth: The proposed agency would duplicate the work of existing agencies and increase regulatory burden on businesses. FACT: The CFPB would consolidate and streamline existing functions to reduce regulatory burden. The new Agency would consolidate consumer protection rulemaking and enforcement that is now scattered across several agencies, creating unnecessary conflicts and duplication of effort. Since entities in the current system would be streamlined into a single agency, the bureau would actually reduce regulatory burden and expense...

Financial companies are lobbying hard to strip states' rights to make and enforce consumer protection rules, but states must stay on the front lines of fighting predatory lending.

In a letter to the Treasury Department, the Department of Defense (DoD) announced its support for financial reform, including the creation of a Consumer Financial Protection Agency, to protect its service members and their families from predatory car dealers. A DoD poll of its financial counselors found that the majority had counseled service members on issues such as "bait and switch financing." In 2006, the DoD's concern about its service members becoming ensnared in a payday lending debt trap contributed to the passage of a 36% federal rate cap for military personnel.

The Military Coalition expressed opposition via letter to the Senate Banking Committee about exempting car dealers from the financial reform bill on April 15 2010. The Department of Defense wrote a similar letter in February 2010 because car dealers have abused servicemembers.

Here's a quick reference on what the Consumer Financial Protection Bureau would do, what it wouldn't do, and the most important parts of proposed financial reform legislation to help ensure strong consumer protections.

Chief Consumer Watchdog arrives in 2012 President Obama names former Ohio Attorney General as CFPB Director America's consumers now have a top cop in a wide range of financial affairs. Richard Cordray, a former Ohio attorney general and state treasurer was appointed by President Obama to become the first director of the Consumer Financial Protection Bureau (CFPB). After the greatest financial collapse since that of the 1930s Great Depression, the historic Dodd-Frank Act created a new bureau to comprehensively address lending abuses and the accompanying power to enforce regulatory change...