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No Carve-Outs for Auto Dealers

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...

Comments to the Federal Trade Commission on Mortgage Assistance Relief

The need for mortgage relief continues to grow, but too often companies that promise mortgage assistance relief services (MARS) turn out to be scammers. CRL and its allies recently submitted comments to the Federal Trade Commission, which is considering tighter rules to ensure that people who pay for mortgage assistance actually have a fair chance of receiving help.

Comparison of Consumer Financial Protection Agency Bills

Provision Senate Bureau of Consumer Protection House Consumer Financial Protection Agency Administration Consumer Financial Protection Agency Presidentially Appointed Director Yes, confirmed by the Senate. Yes, confirmed by the Senate. Yes, confirmed by the Senate. Independent source of funding Yes, from the Federal Reserve Board budget. Yes, from the Federal Reserve Board budget. Yes, with fees on "entities and transactions" within the financial system. Rule-making Authority Writes rules, but rules can be vetoed by a two-thirds vote of a newly created council of bank regulators. Full rule...

Comparison of Consumer Financial Protection Agency Bills

Provision Senate Bureau of Consumer Protection House Consumer Financial Protection Agency Administration Consumer Financial Protection Agency Presidentially Appointed Director Yes, confirmed by the Senate. Yes, confirmed by the Senate. Yes, confirmed by the Senate. Independent source of funding Yes, from the Federal Reserve Board budget. Yes, from the Federal Reserve Board budget. Yes, with fees on "entities and transactions" within the financial system. Rule-making Authority Writes rules, but rules can be vetoed by a two-thirds vote of a newly created council of bank regulators. Full rule...

Snapshot of a Foreclosure Crisis

15 Fast Facts The magnitude of foreclosures and associated costs are daunting; the numbers tell the story. 1. Number of foreclosures initiated since 2007 6.6 million 2. Projected foreclosures during next 5 years Up to 12 million 3. Portion of all homeowners seriously delinquent on their mortgage 1 in 9 4. Portion of homes where owners owe more than property value Nearly 1 in 4 5. Drop in residential lending in 2008 from 2007 Over a trillion 6. Between 2006 and 2008, decline in existing home sales 24% 7. Between 2006 and 2008, decline in new home sales 54% 8. Between 2006 and 2008, % decline in...

CRL Argues All Banks Must Follow State Repossession Laws

California's Rees-Levering Act entitles car loan borrowers to receive information on the amount they must pay to recover their car when it is repossessed. This represents an important, and easy to satisfy, legal protection for car loan borrowers who otherwise may find it hard to determine the amount of payments and fees the lender claims are owed. U.S. Bank successfully argued to a California federal district court that it did not have to follow this law because of its status as a National Bank. CRL, joined by AARP, National Consumer Law Center, National Association of Consumer Advocates...

Extend Emergency Foreclosure Program (SB 1216)

Full Session Law This legislation has two major components: (1) it extends the reach of the State Home Foreclosure Prevention Project, and (2) it modifies the points and fees trigger for determining that a mortgage is high-cost. Extending the State Home Foreclosure Prevention Project (SHFPP) Since 2008, the SHFPP has helped over 4,200 homeowners with subprime loans avoid foreclosure in North Carolina, and has allowed more than 10,000 others to meet housing counselors for free advice and assistance. Beginning November, 1, 2010, this legislation extends the program to cover all home loans whose...

DoD Letter in Support of CFPA Requests No Auto Dealer Carve Out

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.

Mainstream banks making payday loans

Download our report "Mainstream Banks Making Payday Loans" (PDF) UPDATE April 2010. A spokesman for the Office of the Comptroller of the Currency told a reporter that the loans described in this report are not payday loans -- that the OCC has no problem with banks making them. "It's not a payday loan. It's available through banks and bank branches. It's something you don't get at a storefront." These are high-interest loans due on payday, virtually indistinguishable from storefront payday loans that have been banned in many states and by Congress to protect military personnel. Another example...

National Bank Regulator Enabled Overdraft Abuses

Read our report (PDF) >> Our nation's largest banks extract billions of dollars in fees from their customers each year through abusive overdraft loan programs. Over the last ten years, these programs developed and proliferated under the Office of the Comptroller of the Currency (OCC), the national banks' primary regulator. The OCC recognized problems with the systems early on but has taken no meaningful action to address them. Today, financial institutions routinely approve even the smallest debit card transaction that results in an overdraft. The overdraft programs at the OCC's banks are...

National Bank Regulator Enabled Overdraft Abuses

Read our report (PDF) >> Our nation's largest banks extract billions of dollars in fees from their customers each year through abusive overdraft loan programs. Over the last ten years, these programs developed and proliferated under the Office of the Comptroller of the Currency (OCC), the national banks' primary regulator. The OCC recognized problems with the systems early on but has taken no meaningful action to address them. Today, financial institutions routinely approve even the smallest debit card transaction that results in an overdraft. The overdraft programs at the OCC's banks are...

Congressional Proposal Would Curb Overdraft Abuses; Fed’s Rules Fall Far Short

The Federal Reserve issued rules in November 2009 related to bank overdraft practices. These rules are limited and do not address the fundamental problems with today's overdraft systems–- namely, their high cost and the frequency with which fees are charged. Americans pay $23.7 billion per year in overdraft fees, most commonly due to small debit card overdrafts that institutions could easily deny for no fee. These fees hit vulnerable consumers hardest, thrusting them into a cycle of debt and driving some from the banking system altogether. Congresswoman Maloney and Senator Dodd have proposed...

To Prevent Foreclosures, Eliminate Penalty Tax On Mortgage Relief

When homeowners are at risk of losing their home to foreclosure, the last thing they need is an extra tax bill. Congress passed the 2007 Mortgage Forgiveness Debt Relief Act ("the 2007 Act") specifically to avoid imposing extra taxes on distressed families, but as currently written, the law doesn't work. In passing the 2007 Act, Congress recognized that taxing this debt relief would directly undermine the fundamental intent of mortgage write-downs, and the legislation exempts some debt relief from taxes. But there are two problems: The 2007 Act effectively denies this exemption to a large...

HB 1058 Increase Statutory Homestead Exemption

H1058 significantly increases the amount of equity in their home that a homeowner can protect from creditors. This allows individuals with debt to keep their homes rather than having their home sold to satisfy a judgment. The law raises the NC homestead exemption from $18,500 to $35,000 per individual ($70,000 per married couple). If the homeowner is 65 or older, and previously owned the home with their deceased spouse, they can exempt $60,000.
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