WASHINGTON–More than 120 consumer advocates from 29 states met with members of Congress as part of the third annual Consumer Lobby Day, where they called for stronger consumer financial protections for ordinary families, addressed predatory lending and forced arbitration clauses, and said there is a need for a “strong CFPB to enforce the rules of the road.”
The effort was coordinated by the Consumer Federation of America and is co-sponsored by Americans for Financial Reform, Consumer Action, Consumer Reports, National Association of Consumer Advocates, National Consumer Law Center, National Consumers League, Public Citizen, and U.S. PIRG.
Areas of Focus
According to the coalition of consumer groups, they were particularly focused on:
- Holding the Consumer Financial Protection Bureau accountable for delivering on its mission: “Under recent leadership, the Bureau has failed to effectively fulfill its core mission, has taken actions that seek to reduce burden on industry at the expense of consumers, and has neglected to enforce the law,” the groups said. “The CFPB’s overall enforcement activity is down by 80% from the Bureau’s peak productivity in 2015 and average monetary relief to victims is down by 96% per case. The CFPB must return to its critical role of holding lawbreakers accountable. Congress should also oppose any proposal—either from the Director or Congress—to compromise the CFPB’s independence. Prior to 2018, the CFPB effectively worked for consumers. The agency has a high level of accountability which should be used to ensure that it focuses on its mandate to protect consumers.”
- Fixing the CFPB’s proposed debt collection rule that opens consumers up to harassment and abuse. According to the consumer groups, the 538-page rule allows for too many phone calls per debt; allows texts and emails without consent; permits violations of consumer privacy, and fails to prevent abusive collection of time-barred “zombie debt.”
- Opposing all forms of predatory lending and the CFPB’s proposal to roll back payday protections. “High cost payday loans and car title loans trap consumers in cycles of debt. The CFPB has proposed to do away with the core requirement of its 2017 rule that requires lenders to determine a borrower’s ability to repay. The proposed rollbacks would prevent protections against debt traps from taking effect later this year.”
- Adopting a national usury limit, and opposing attempts by high cost lenders to circumvent state rate caps. “The Military Lending Act set a 36% rate cap for a variety of lending products, including payday loans. All Americans could benefit from this common-sense cap, paving the way for affordable loans that consumers can repay.”
- Passing the Forced Arbitration Injustice Repeal Act (the FAIR Act) to eliminate forced arbitration in contracts. “Congress should restore the rights of harmed and wronged consumers, workers, and small businesses to seek justice against corporate misconduct. Forced arbitration clauses are in contracts for products and services such as credit cards, child care, cell phones, car loans, home construction, student loans, payday loans, health insurance policies, and nursing homes.”