Prepare to hear a lot of “we don’t need new regulations, we need to enforce the ones we already have” blather:
Such a commission could be very powerful. A number of sweeping federal laws already offer broad protection to consumers of financial products, but those laws have been lightly enforced in recent years.
But:
The Department of Housing and Urban Development, for example, has clear authority to crack down on companies that charge excessive closing costs on mortgage loans, but repeatedly postponed planned reforms in the face of industry opposition.
That’s excellent context.
The paper even calls out predatory lending (by name!), which has gotten far too little play in the press:
It would also be one of its first proposals to address causes of the financial crisis such as predatory mortgage lending.
This is suberb work by the Post.
A true federal consumer protection panel is exactly what the American people need in this time of positive and productive change. The American people have been given the short end for much too long and a streamlined, responsive agency to advocate and resolve the financial problems facing so many individuals and famiies is a time that has clearly come.
As an example Is there a CONFLCT when arbitrators hear mandatory arbitration cases set up by financial institutions and those same arbitrators are beholden to those same financial institutions for future pay checks? Lets' be more specific: An individual who wants to open an investment account with for example Charles Schwab Corporation and the application requires 'mandatory arbitration'. Lets say hypothetically a broker commits fraud, negligence or breach of contract against an elderly client and the heir wishes to file a complaint. Mandatory arbitration is the only avenue for that complaint. The arbitrators determine the broker has wronged the estate but doesn't penalize the corporation and the heir has no appeal process. All because the application required mandatory abitration; how does that protect the individual? So the broker is publicly chastised, i.e., the claim against his record won't be expunged but the large financial corporation is not penalized financially for the wrongdoing and the heir (claimant) after paying incredible legal fees to fight the fight against Goliah is told to go home and stay silent.
This is only one example of how financial institutions are daily hurting the individual and or families with investment restrictions, mortgage hype, terminology in loan documentation that even an attorney can't interpret, and the list goes on and on. If current federal 'watchdog' consumer panels were doing a good job, the American people would not be living on the streets, in tents or grieving the lost of loved ones, knowing they were abused and misused by unethical financial advisors who are supposed to have a fiduciary duty to protect the citizen.
As a doctor and family therapist, as a real estate broker and as a strong advocate for the middle class and children who are deeply suffering, enough is enough. When will accountability be addressed by those policy makers making policy for the American people?
Dr. Jerri Curry
P.O. Box 667
Martinez, California 94553
(707) 297-0550
#1 Posted by Dr. Jerri Curry, CJR on Thu 21 May 2009 at 01:46 AM
I'd really like to know what good this Administration did for anybody losing their home when I'm a 64 year-old disabled veteran on a pension and nobody could or would (my bank wouldn't talk to me) help me save me from eviction. Can anyone still help me as as I await eviction? Thank you
#2 Posted by Rina Kelley, CJR on Fri 11 Sep 2009 at 04:51 PM