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LaFalce
Introduces "Consumer Bill of Rights" For Financial
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U.S. Rep. John J. LaFalce (D-NY), Ranking Member of the Financial Services Committee, today introduced a legislative package aimed at protecting consumers from a variety of predatory practices. The measures are designed as a response to the changing conditions and new abuses in the financial services industry. "The growing complexity of today's financial marketplace, by itself, should prompt Congress to consider additional measures to protect consumers," said LaFalce. "But trends toward market segregation and predatory ethics now demand that consumers have additional rights and greater protections against unfair and abusive financial practices. The eleven bills I and other Committee Democrats are introducing today seek to address the most widespread and abusive practices confronting consumers in today's market for consumer credit and basic financial services." LaFalce unveiled the legislative initiatives at a news conference, joined by other Democratic Members, consumer and community groups. The measures constitute a Consumer Bill of Rights for purchasers of financial products and services, and lay the groundwork for LaFalce to push an aggressive consumer policy agenda for the 107th Congress. The legislative initiatives include:
LaFalce noted that some of the measures are re-introductions or revisions of legislation he offered last Congress. But other bills, LaFalce said, " respond to new abusive trends in the financial services industry, such as the rapid growth of subprime lenders who target minority and low income households, or consumers with damaged credit; increased marketing of high cost credit cards to college students and teenagers; and the pending sunset of key provisions in current law that help consumers understand the full costs of financial services." "These bills respond to the growing numbers of people who fall victim to the predatory practices-- the same people for whom the Congress will pass bankruptcy legislation that makes it harder- not easier- for them to obtain relief from excessive debt," said Margot Saunders, of the National Consumer Law Center. "Congressman LaFalce should be commended for answering the moral call to put a stop to growing trend of abusive practices- such as payday loans, live loan checks, predatory home mortgage loans and credit cards." "Every year we hear about the need for regulatory relief of financial services, this effort sets the benchmark for offering relief to consumers from predatory and abusive behavior," said Frank Torres of the Consumers Union. "While the credit industry is getting their wish list in the bankruptcy bill, these legislative initiatives represent a consumer wish list and Congress should seriously consider adopting it." "With the Truth in Lending Act of 1968, Congress recognized that consumers have a basic 'right to know' the full and accurate costs of all financial services," said LaFalce. "The complexity of today's financial marketplace now demands that consumers have new rights and greater protections against unfair and abusive practices. The eleven bills that I am introducing today offer a broad program of reform that can restore consumer protection and customer service as the guiding principles of financial services policy. "The meager attention the Congress has given to consumer protection over the last several years has been the result of Democratic prodding. We will continue to prod until these important issues get the attention they deserve."
Source: Fed / FDIC |
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