Coalition EffortsConsumer Action is working on these important issues along with other organizations. If you would like to know more about these issues, please see "More Information" at the end of each article.
Don’t restrict the CFPB’s oversight of auto financing issues
In the latest effort to restrict the Consumer Financial Protection Bureau’s (CFPB) jurisdiction, legislators target the agency’s regulatory power over the auto financing industry. The “Reforming CFPB Indirect Auto Financing Guidance Act” (H.R. 1737) places unnecessary restrictions on the agency and is designed to hamper the agency’s attempts to bring fairness and transparency to the auto lending market.
Recalled vehicles should not be rented to consumers
Those who frequently drive rental cars should feel more secure behind the wheel. Senator Claire McCaskill introduced an amendment that will force rental companies to perform recalls on their vehicles before they can be driven by consumers. An earlier GOP proposal would have allowed unsafe, potentially dangerous vehicles to remain in service or sold as long as the customer was warned of the recall.
Loan servicing standards need to improve for students and families
In response to the Consumer Financial Protection Bureau’s (CFPB) request for information, consumer advocates brought to light issues commonly found within the student loan servicing industry. Wide-spread problems relating to miscommunication, payment processing errors, dispute resolution and servicer transfers are a few areas the advocates asked the CFPB to address.
It’s time to end predatory college-bank partnerships
The Department of Education’s proposed changes to "Cash Management" rules governing student financial-aid disbursements are a strong step towards curbing the misuse of the federal student-aid system — specifically college-bank partnerships that aggressively market to students and steer them into high-fee bank accounts.
Keep the “consumer watchdog” independent of partisan politics
The House Appropriations Committee is reviewing a provision in the “Financial Services and General Government” appropriations bill that would bring funding for the Consumer Financial Protection Bureau (CFPB) under the annual congressional appropriations process, instead of continuing to fund the agency directly from the Federal Reserve. This means partisan politics stands to restrict the CFPB’s regulatory authority by holding its purse strings and requiring the agency submit unnecessary reporting.
Protecting borrowers, not banks, from risky loans
Coalition advocates wrote to Congress asking them to oppose H.R. 1210. The bill would change the new Qualified Mortgage rules in the Wall Street Reform and Consumer Protection Act’s Ability-to-Repay requirement. Lenders should make a good-faith effort to determine a borrower’s ability to repay a mortgage before extending them a loan. Instead, H.R. 1210 contains an unnecessary exemption that puts all the risk on the borrower and protects the lenders from legal responsibility.
ED can do more to prevent widespread fraud
In light of the recent bankruptcy of Corinthian Colleges, and its subsequent campus shutdowns, coalition advocates urge the Education Department to develop a proactive strategy that would prevent for-profit schools that are under investigation for predatory practices from receiving federal aid and further defrauding students.
Advocates oppose effort to suspend lender liability under new mortgage rules
Coalition advocates wrote to the House of Representatives asking them to oppose H.R. 2213. The bill suspends homebuyer rights by absolving lenders from accountability for five months after new mortgage disclosure rules take effect this summer, and lets lenders off the hook even when a homeowner has been harmed. This means that homeowners who receive misleading mortgage cost disclosures during that period would have no recourse. Moreover, the legislation sets a dangerous precedent by suspending liability where legal rules apply.
Lawmakers siding with predatory payday lenders over troops
Consumer Action and coalition advocates wrote to the House Committee on Rules asking members to oppose Amendment #268 of the FY2016 National Defense Authorization Act. The unnecessary database certification requirement will delay the Department of Defense’s regulatory efforts meant to make it more difficult for payday lenders to target troops with predatory offers. The amendment would put servicemembers at risk of financial harm in order to protect abusive lenders.
Help for Corinthian students who were misled
After Corinthian Colleges announced that it’s closing its twenty-eight campuses and filing for Chapter 11 bankruptcy, Consumer Action joined coalition advocates in asking the U.S. Department of Education to provide the students who were enrolled at the time with the information and resources they need to make an informed decision about transferring their credits or filing for a closed school discharge.