Delaney Publishes Op-Ed on Consumer Protection Agenda in Huffington Post
The op-ed is online here http://www.huffingtonpost.com/john-k-delaney/a-new-consumer-protection_b_11910482.html and copied below.
A New Consumer Protection Agenda for Working Families
By Rep.
For too many Americans it can be expensive just to spend their own money. Daily drains on purchasing power caused by high fees, exorbitant rates and limited access to affordable credit and basic banking services are making it more difficult for millions of Americans to enter the middle class and making the foothold that many have feel tenuous. The very people who can least afford to do so often pay some of the highest rates and fees in the marketplace.
Far from the headlines or cable news, this is an everyday financial crisis that is limiting economic opportunity and dragging down the creation of more good jobs by limiting demand and stifling new business creation. This hidden crisis is keeping the economic recovery from being enjoyed more widely. As a member of the
While the reforms and protections passed after the financial crisis of 2008 addressed structural problems related to large financial institutions, more work needs to be done to help protect individual consumers and underserved communities. Even here in
That's why this year I launched my Consumer Protection and Community Investment Agenda, a package of legislation designed to give consumers access to affordable services, expand protections for vulnerable populations and veterans, and increase economic development in struggling communities.
One of the most important first steps we should take is to broaden access to the basic financial tools that are essential to full and secure participation in our economy. Imagine trying to save for the future or manage your finances without a bank account? For over 60 million Americans that's an everyday reality. These consumers are considered "unbanked" or "underbanked" - meaning they are without a bank account entirely or regularly rely on alternative financial products. A study by the
Without access to affordable financial services many are totally reliant on high-fee alternatives like check cashing services, pre-paid cards and payday lenders. Over time, this can ruin people financially. According to an analysis by the
One solution is to allow philanthropic, non-profit banks to operate in targeted areas with high concentrations of Americans without a bank account, the same areas where it is difficult to find a traditional for-profit bank branch. Without having to worry about making a profit (which will allow lower costs for consumers) and supported by donations, these institutions could offer basic checking, savings and credit services to consumers who right now don't have many options in their neighborhood. Currently, outdated
Many of the same people in these distressed areas are also consumers at rent-to-own companies, which specialize in selling electronic and household goods via contracts that include weekly or monthly payments. While the rent-to-own model may work for some, there is very little regulation of this industry and some rent-to-own contracts can feature high fees and interest rates, leading to customers paying much more - sometimes even as much as five times more - for the same products than if they'd purchased them from a traditional retailer.
Our Expanding Rent-to-Own Protections Act would ensure that rent-to-own customers receive the same level of protections that other consumers enjoy. After the financial crisis, the
Finally, my Consumer Protection and Community Investment Agenda includes bipartisan legislation to protect the credit scores of veterans who are dealing with delayed government payments. The Protecting Veterans Credit Act currently has seven Democratic and five Republican cosponsors and is supported by the
The slow disbursement of Veterans Choice Program payments has meant that potentially thousands of veterans have been adversely affected, often having large and inaccurate medical debts wrongly listed in their name. This error can make it more expensive for veterans to buy a home or car or be hired at a new job. No veteran should have their personal finances ruined because of delayed payments from the
Our Consumer Protection and Community Investment Agenda is guided by a belief that the financial marketplace should work for all Americans, no matter where they live.
Read this original document at: http://delaney.house.gov/news/press-releases/icymi-delaney-publishes-op-ed-on-consumer-protection-agenda-in-huffington-post
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