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Sequel Worse Than the Original: Financial Choice Act 2.0 Would Eviscerate Consumer Protections

Wednesday, April 26, 2017
Yana Miles

Hearing held today on legislation that would shred consumer protections enacted in wake of the financial crisis

WASHINGTON, DC – Today at 10 AM, the House Financial Services Committee will hold a hearing on an updated and even more extreme version of the so-called Financial CHOICE Act. This radical bill would expose American families to risky financial practices that contributed to the Great Recession of 2008. For example, the legislation would severely obstruct 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.

Center for Responsible Lending (CRL) Senior Legislative Counsel Yana Miles released the following statement:

This extreme legislation would put the foxes back in charge of guarding the hen house by putting big banks and predatory lenders back in charge of our economy.

This 'Wrong CHOICE Act' contains numerous provisions that prevent the consumer agency from doing its job of stopping the tricks and traps of predatory actors in the financial industry. The bill even specifically exempts payday and car title lenders – notorious for springing devastating debt traps for their already vulnerable customers – from any regulation.

Instead of making it easier for credit card companies, for-profit colleges, and debt collectors to swindle American families, this Committee should focus on protecting and growing family wealth.

For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Matthew Kravitz at matthew.kravitz@responsiblelending.org or 202-349-1859.