The Top 10 Financial Products and Services that Must Be Regulated in 2010
Huffington Post
January 28, 2010
Mintz, Jonathan B.
No consumer is alone in their financial struggles, and the creation of an independent Consumer Financial Protection Agency (CFPA) becomes more of an imperative as time progresses. For a potential CFPA to be effective in protecting American consumers, there are 10 financial products and services it should focus most on regulating. Overdraft protection, which cost Americans some $38 billion in 2009 for many over-the-limit purchases approved by the banks themselves; refund anticipation loans, which cost borrowers about 7.8 percent of their federal tax refund and amount to $800 million of wasted taxpayer dollars annually; debt collection, which often involves harassment tactics and invalid collections; and mortgage modification services, which take advantage of customers by charging steep fees upfront and not delivering promised results, all must be strictly regulated. Additionally, check cashers, which have generated $1.5 billion in fees; debt settlement services, whose fees are often so high that they negate any potential benefit for the consumer; used-car loans, which have comfortable monthly payments that often disguise the fact that consumers are paying more than they would with a bank or credit union loan; and payday loans, which entail extremely high fees and interest rates as well as a greater likelihood of loan rollover, all will continue to take advantage of consumers unless strict direction is given. Car-title loans, which put an essential asset at great risk, and rent-to-own financing, which often tricks consumers into annual interest rates of up to 71 percent with convenient month-to-month financing, also must be more firmly regulated in order to prevent more harm coming to consumers.
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