“What’s Hot” is a bi-weekly email
newsletter published by the Center for Responsible Lending to
keep you informed about new research, analysis and resources
from CRL and developments in the fight against predatory
lending.
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Final Vote on
CFPA Expected
Yesterday, the House Financial Services Committee
began work on legislation that would create the Consumer
Financial Protection Agency (CFPA), an agency focused solely on
protecting consumers from the financial abuses responsible for
the current economic meltdown. Chairman Frank said he expects a
final vote on CFPA by the Committee early next week.
There’s still time to urge legislators to vote for the
creation of the CFPA. If you have not, please sign the "Our
Money, Our Choice"
petition. |
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Overdraft Fees Shoot Up By 35% In Two
Years
Amid growing concern among consumers and
lawmakers about unfair bank overdraft fees, CRL released a report last week documenting
the swift rise in fees -- which now affect 50 million Americans
each year -- to nearly $24 billion per year. Big banks are
scurrying to announce changes to their practices, but the
changes don't get to the root of the problem. Banks and credit
unions should simply not be charging overdraft fees for debit
card transactions without warning or prior
approval. |
Ecumenical Appeal to Congress: Fair Financial
Reform
A long list of religious leaders from
various faiths and denominations have voiced their hopes for
financial reform to Members of Congress. In letters to both the U.S. House and Senate,
three specific requests were made: End financial practices that
are blatantly usurious; Employ sound regulation to protect the
integrity of consumer financial services; and Keep families in
their homes and prevent needless foreclosures.
NC Coop Helps Environment with Self-Help Credit Union
Loan
Like many cooperatives, Piedmont Biofuels in
Pittsboro, NC started very modestly. The seven-year-old
cooperative started with just one member, and literally made
biodiesel in Mason jars. With the help of a Self-Help loan, Piedmont Biofuels has grown to 500 members and
uses a sophisticated reactor system to produce thousands of
gallons of fuel each month. (from NC Credit Union League
9/22/2009.)
Got Overdraft Fees?
Test your knowledge
of these pesky loans with our new Overdraft Quiz, then tell us how your bank is
taking money from your account.
Ignoring State Laws: Bad Idea
A new
report by the Center for Community Capital (CCC) at the
University of North Carolina shows that risky lending increased after 2004, when the
U.S. Office of Comptroller of the Currency allowed national
banks to ignore state lending laws. The CCC reports that
national banks’ subprime lending rose substantially in the
wake of this decision. In addition, the study shows that states
with stronger lending laws have fared better during the
foreclosure crisis.
In the News
The New York Times
editorialized in support of reform that would stop banks from
collecting nearly $24 billion per year in unfair overdraft
fees. The Washington Post reported on moves to regulate predatory payday lending on the
federal level. President Obama criticized banks and other finance
companies for opposing creation of the Consumer Financial
Protection Agency, recounting the strory
of Wisconsin payday borrower Patricia Nelson, who
paid $2,700 in fees over two years for a payday loan of $550.
New research from California shows that foreclosures are hitting low-income and minority
communities the hardest. In Minneapolis, a closer look at forced arbitration in credit card
collection cases exposes conflicts of interest and ends
“business as usual” nationally.
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