Treasury’s Financial Regulation Report: A Wall Street Wish List

By Renato Rocha, Policy Analyst, Economic Policy Project, NCLR

This week the U.S. Department of the Treasury released a report to the president that outlines recommendations to rollback critical safeguards, including consumer protections that were put in place in the wake of the Great Recession. The Treasury report comes less than a week after the U.S. House of Representatives passed the Financial CHOICE Act, legislation that would deregulate financial institutions and expose our entire economy to a heightened risk of instability.

The Treasury’s proposals are straight from a Wall Street wish list, as the proposals effectively  gut the Consumer Financial Protection Bureau (CFPB).

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Latinos Overwhelmingly Support Consumer Protection

By Renato Rocha, Policy Analyst, Economic Policy Project, NCLR

In less than six years since opening its doors, the Consumer Financial Protection Bureau (CFPB) has brought transparency to the remittance industry, stopped credit card companies from adding on products that consumers never agreed to, and required mortgage lenders to ask applicants for proof of their income before making home loans. Its creation is one of the most important accomplishments of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Despite the CFPB’s hard work on behalf of American families, efforts are underway to dismantle the agency. One such attempt is the “Financial Choice Act of 2017,” House Financial Services Committee Chairman Jeb Hensarling’s vehicle to de-regulate the financial industry and dismantle the CFPB.

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Flashback Friday: The Payday Rule

By Marisabel Torres, Senior Policy Analyst, Economic Policy Project, NCLR

What a difference a year has made for consumers. A year ago today, consumer advocates celebrated the Consumer Financial Protection Bureau (CFPB)’s release of a proposed rule to reign in the worst abuses of payday, car title, and other high-cost debt trap lending schemes. For too long, predatory businesses targeted communities of color and other consumers who had limited access to credit with loans and promises of quick cash to help make ends meet. Because these businesses have been unregulated, they have gotten away with charging exorbitant fees and structuring their loan products to keep consumers in a cycle of debt. After hearing the countless experiences from consumers who were victims of these debt traps, the CFPB, an agency that was established with the sole mission of keeping the financial marketplace transparent and fair, stepped in and proposed a rule to stop these harmful practices.

Fast-forward to today: Congress stands poised to not only roll back the CFPB’s ability to regulate these businesses, but the very existence of the CFPB is threatened by an upcoming vote on the Financial CHOICE Act, H.R. 10. This legislation—dubbed the WRONG Choice Act by consumer advocates—will undo years of positive regulatory work intended to make sure payday lenders and other bad actors stay off the market, and that we don’t face the same conditions that led to the Great Recession.

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Trump’s First 100 Days: Weakening Consumer Protections for Student Loan Borrowers

By Amelia Collins, Policy Analyst, NCLR

The president proposed an ambitious student debt plan during the campaign last year. He called student loan debt an “albatross” hanging on the necks of borrowers, proposed a generous and streamlined repayment plan, and stated that the government shouldn’t “profit” off its student loan program. However, instead of using the first 100 days of his presidency to follow through on these promises, President Trump and Secretary of Education Betsy DeVos have rolled back crucial consumer protections for our nation’s 40 million student loan borrowers.

Let’s set the stage.

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The Financial Choice Act of 2017 Is the Wrong Choice for American Families

By Renato Rocha, Policy Analyst, Wealth-Building Project, NCLR

The reckless behavior of financial institutions including banks, credit card companies, and mortgage lenders caused the 2008 financial crisis that cost Americans millions of jobs, billions in taxpayer-funded bailouts, and trillions of lost retirement savings. A lack of consumer protections and oversight of the financial marketplace allowed unscrupulous lenders to target communities of color with unfair and abusive financial products. The Latino community was disproportionately impacted by the economic crisis and is still struggling to recover.

The devastating and widespread effects of the crisis led to the creation of the Consumer Financial Protection Bureau (CFPB), which we view to be the crown jewel of Wall Street reform. In less than six years, the CFPB has already curbed several deceptive practices in the financial marketplace: bringing transparency to the remittance industry, prohibiting credit companies from adding on products that consumers never agreed to, and requiring mortgage lenders to ensure that applicants can afford the home loans they’re seeking. The CFPB is also working on putting protections in place that would rein in predatory payday loans and debt collection practices. Each one of these actions have helped put all Americans on a path to greater financial security.

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