Banks vs. consumers: Demand a new protection agency now!
If you want to see a consumer financial protection agency, now is the time to let your Congressman know how important that protection will be for you. I've seen many comments on WalletPop about how abusive credit card and mortgage practices have hurt people's financial position. Most of those abuses occurred because federal agencies were asleep at the switch.While consumer protection laws have long been in place, no one agency has the responsibility to be certain these laws are being enforced. Now President Obama wants a new consumer protection agency that would regulate home loans, credit card fees, payday loans and other forms of consumer finance, but the banks are already organizing their lobbying troops to kill the plan. Banks have taken billions of dollars to save themselves, let's make sure they don't kill the one small package geared to consumer protection.
The proposal on the table would strip away all consumer responsibilities that are currently assigned to existing bank regulators, such as the Federal Reserve, the FDIC and the Comptroller of the Currency. Their failure to protect consumers, as more and more exotic mortgages were marketed to consumers, helped to fuel the mortgage bubble that just burst. Clearly their inaction proves the need for an agency that focuses on consumer protection.
We've witnessed the bailout of the banks, so we know how effective their lobbying efforts can be. The banks prefer the soft approach to consumer protection that we've seen from existing agencies. We must be sure Congress sees that consumers want change, by orchestrating a lobbying effort to let Congress know our views.
Right now there is a lot of support from House and Senate Democrats, as well as many consumer groups, for the Obama proposal. The House Financial Services Committee, chaired by Rep. Barney Frank, hopes to complete work on the bill by the end of July and send the bill to the Senate in September.
"I'm very much in favor of it." Frank told The New York Times. "Anyone who thinks we're not going to create this agency is mistaken. The American public wants it."
It's up to us to prove to representatives and senators that Frank is right -- we do want the consumer protection agency. We can only do this by emailing, writing or telephoning our representatives and senators.
Find out how to contact your elected representative here.
Lita Epstein has written more than 25 books including The Complete Idiot's Guide to Improving Your Credit Score.
Reader Comments (Page 1 of 1)
7-01-2009 @ 5:18PM
HonestJohn said...
Please,
Another Government agency ? The Federal morons in Washington shouldn't be in control of "out-house' clean-up.
Anyone who adocates for more government "control" might consider removing their head from their anal orifice
Reply
7-02-2009 @ 9:18AM
Donovan said...
Its the consumers/people who need to fight back. And the sooner the better. Considering the totally unjustified tactics banks/credit card issuers are using against account holders in raising monthly payments and interest rates is nothing less then consumer terrorism. Consumer Interest rates and payments are being raised to excessive levels, therefore becoming a financial burden for thousands of account holders. It seems to be a vicious deliberate attempt on the banking business's part, to financially ruin the credit history and account holders ability to make monthly payments. It seems the more an account holder pays down their credit card debt, the higher the credit credit card issuer/bank raises the account holders interest rate. And these amended higher interest rate changes, are being adjusted on consumers accounts every few billing cycles. Offers to consumers of a low fixed rate "until the balance is paid off" are being amended to higher rates of interest, and changed from the initial low fixed rate as offered, to a variable rate, plus prime for no just cause. To me, this a deliberate breach of contract. However, these credit card issuers are able to get away with amending consumers credit card terms contracts at will. These banks/credit card predatory loan practices should not be legal.
Reply
7-07-2009 @ 10:55AM
david a. robinson said...
I totally agree. Unfortunately, government run by greed and corruption. Run by individuals who have no love for country or its people can only continue to get larger. And our rights? Those once guaranteed to all AMERICANS, NOT ILLEGALS or terrorists. Rights guaranteed.by that once great and powerful document, the U.S Constitution, will continue to get smaller. Here's a little something for you to think about. Democracy, by it's own design, will eventually legislate itself out of existance. Oh, and here's one more. What political lawmaking body has the greatest amount of power? Which one effects your life and mine the most? How about your county commission? And to top it off, 99% of all the ordinances they pass our illegal under the Constitution. RIGHT OR WRONG? What can we do about it? Considering the high level of voter ignorance and laziness, absolutely nothing.
Reply
7-10-2009 @ 12:35PM
rippedoff consumer said...
i went online to pay my credit card bill, showed a $35.00 late fee. was told by customer service that i paid to early, and that i should have waited a few days so that my payment would have been credited to the following month. sometimes i make two payments a month other times just one, but i'm always ahead and pay more than twice the minimum each time. tried to e-mail the company and everytime i hit send it's an internal server error,go figure, guess i will have to complain using the good old postal service. if anyone else has ever been charged a late fee for paying early i sure would like to hear about it.
Reply