By Marisabel Torres, Senior Policy Analyst, Economic Policy Project, UnidosUS
We’re happy to be sharing some good news this week. UnidosUS is joining our advocacy partners in celebrating the Consumer Financial Protection Bureau (CFPB)’s release of their final payday rule!
Payday loans are loans in which the lender repays itself directly from the borrower’s bank account on the borrower’s payday. These loans are typically due in one lump sum. With a car title loan, the lender requires the power to immediately seize and sell the car as collateral, and uses this power to coerce payment.
By Renato Rocha, Policy Analyst, Economic Policy, UnidosUS
Today, UnidosUS joins the consumer advocacy community as we celebrate the sixth anniversary of the Consumer Financial Protection Bureau (CFPB). The crippling effects of the financial crisis led to the creation of the CFPB, which we view to be one of the most important accomplishments of Wall Street reform. Six years ago, we made the argument that consumer protection is a civil rights issue––and we feel the same way today.
Since opening its doors, the CFPB has already curbed several unfair and deceptive practices in the financial marketplace. Over these last six years, the CFPB 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 to ensure that homeowners can afford them. Just last week, the CFPB issued an important final rule that restricts forced arbitration, giving consumers a way to unite and hold corporations accountable for systemic misconduct. And we are waiting for the issuing of the final rule on payday loans, which will help curb the predatory lending that drains wealth from our communities.
By Nancy Wilberg Ricks, Senior Policy Communications Strategist, Wealth-Building Policy Project
Many read recovery on Wall Street as a sign that all families will benefit from the same relief. This is an inaccurate interpretation. Many Latinos and other Americans continue to fight unfair housing practices and a disproportionate number of foreclosures. The real estate market is picking up but that’s often due to investors swooping in and paying cash for multiple units, turning homeowner neighborhoods into rental communities. While there are signs of hit-or-miss recovery, decision makers have begun comprehensive efforts to quell lenders’ bad practices, and we’re keeping track of your thoughts on the matter.
On our Home for Good website, we track submissions from ordinary Americans affected by the foreclosure crisis through the Share Your Housing Story page. We frequently receive submissions from former homeowners who suffered unnecessary foreclosures and job losses. On occasion, we hear from market players who share their perspective from the inside and how their discomfort led them to leave behind their job or the industry as a whole. Today’s story highlights widespread, harmful behavior by lenders and how preventive efforts must be taken to turn the economy around for honest lenders and families alike. Continue reading