Monthly Archives: March 2015

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AFR Statement: CFPB Payday Proposal Gets Two Crucial Things Right While Leaving Dangerous Exceptions

“First, for a loan to be fair, the borrower must have the ability to repay… Second, the Bureau has recognized that this crucial principle… must apply to a sufficiently broad range of small-dollar loans, and not just to a narrowly defined set of payday or car- title loans. Otherwise, abusive lenders will do what they have done in many of the states that have tried to crack down on such abuses: find ways to evade the rules without giving up their basic debt-trap approach.”

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Joint Letter: 500 Organizations Unite in Call for a Strong CFPB Payday Rule

At a CFPB hearing in Richmond, Va., AFR delivered a letter in which a remarkable array of civil rights, faith, economic justice, elder, community and civic organizations – 500 altogether, including groups from all 50 states – applaud the CFPB for its commitment to this issue and urge it to develop and implement regulations that finally put payday, car-title and other small-dollar lenders “on the same footing as other lenders, requiring them to play by the rules and make fair loans.”

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AFR Statement: Growing Congressional Support for a Wall Street Transaction Tax

“The push for a Wall Street transaction tax continues to gain traction in Washington. In a fresh show of support , a majority of the Democratic members of the House of Representatives voted today for the Congressional Progressive Caucus’s “People’s Budget,” which includes a transaction tax. The 96 votes cast in favor of the CPC budget are 8 more votes than a similar proposal received last year.”

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Letter to Congress: AFR Opposes Legislation that Would Undercut Protections for Consumers, Undermine the CFPB

AFR sent a letter to members of the House Financial Services Committee, urging them to oppose a number of the bills being included in today’s markup. The bills opposed by AFR would undermine the CFPB and help return us to an environment of predatory lending, irresponsible underwriting, and excessive fees that paved the way for our recent devastating housing crisis.

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Letter to Congress: AFR and Seven Organizations Urge Senate to Reject Amendment that Supports Scammers

AFR and seven organizations sent a letter to Senators urging opposition to oppose Senator Inhofe’s amendment 384 to the budget resolution, which would restrict the Department of Justice’s Operation Choke Point or bank regulator efforts to prevent money laundering for terrorists and drug dealers. Operation Choke Point is focused only on banks that help scammers and other illegal activity, and Congress should not hinder these critical activities.

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Joint Letter: AFR and 105 State, Local and National Groups Call for an End to Forced Arbitration in Consumer Finance

“Few practices are as abusive, unfair, and deceptive as the widespread use of forced arbitration clauses in most consumer contracts, including credit cards, student loans, debt settlement, credit repair, auto financing, and payday loans. Forced arbitration funnels consumers into a private system set up by corporations to protect and hide harmful and unlawful corporate behavior.”

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Joint Letter: AFR Joins 44 Other Signers of Letter Urging CFPB Action to Make Prepaid Cards Safer

“While the [proposed] rules are generally strong, we offer several suggestions below for strengthening the rules and closing loopholes. In particular, the CFPB should ban all overdraft fees; apply credit card protections to all credit transferred to a linked prepaid card; and limit fees before account opening and beyond the first year. We also urge the CFPB to require prepaid card funds to be held in accounts protected by deposit insurance and to adopt stronger rules to prevent coercive use of payroll, public benefit, student, released prisoner and other prepaid cards.”