[Promoted from the diaries, with minor edits, by DavidNYC. I think our side got caught a bit flat-footed on the bankruptcy bill. Let's make sure that doesn't happen again.]
Following on the heels of Bankruptcy Deform, the House is gearing up to consider a Federal law to address predatory lending. Rather than address the issue head on, as a proposed Democratic version would do, the powers that be are coalescing around a "bipartisan" bill drawn up by Rep. Robert Ney, Republican of Ohio, and Rep. Paul Kanjorski, Democrat of Pennsylvania (Scranton area).
The problem with the bill is that it superficially addresses some of the key predatory lending issues, but then leaves enough gaping loopholes behind the pretty facade for the predators to drive a truck through. In addition, the bill would pre-empt current state predatory lending laws, some of which have provided a much higher standard at the state level. Because this has been touted as a "bipartisan" effort, several Democrats have unfortunately agreed to cosponsor the bill.
We must let these erring Democrats know that this is a mistake, and that they instad should be co-sponsoring the Democratic version developed by Reps Miller, Watt and Frank instead.
Here is the list of those we need to contact, in addition to Kanjorski:
Rep. Harold Ford - D-Memphis, TN
Rep William Lacy Clay - D-St. Louis, MO
Rep. Gregory Meeks - D-Queens, NY
Rep. Darlene Hooley - D- Salem, OR
Rep. Bennie Thompson - D-Greenville, MS
Rep Joe Crowley - D-Bronx, Queens, NY
Rep David Scott - D-Atlanta, GA
Rep. Brad Sherman - D-San Fernando Valley, CA
If you live in one of these districts, please get in touch with your Rep. More information (including contact info and a sample letter) is below the fold.
Already consumer groups are speaking out against this bill. See this
recent news article. The Ney/Kanjorski bill is titled
H.R. 1295: Responsible Lending Act and was introduced and referred to the House Financdial Services committee on March 15.
The better Democratic version is H.R. 1182: Prohibit Predatory Lending Act which was introduced by Rep. Miller and Rep. Watt of North Carolina with Barney Frank as co-sponsor
Your message to these representatives should be:
Democrats should be in favor of pre-empting state consumer protection laws only to the extent that they provide a floor of consumer protections that some states are failing to provide. When the federal bill pre-empts state laws by providing ceilings beyond which a state cannot provide consumer protections, they need to be certain that they are providing a bill that gives more protections than any state bill currently does.
Ney/Kanjorski does not do this. In fact it provides many loopholes that the predatory lenders will use to continue abusing borrowers. The Democrats should instead be supporting the Miller/Watt bill which provides real consumer protections without preempting state laws.
Paul Kanjorski
E-mail
P: 202) 225-6511
F: (202) 225-0764
Harold Ford
E-mail: rep.harold.ford.jr@mail.house.gov
P: (202) 225-3265
F: (202) 225-5663
William Lacy Clay
E-mail
P: (202) 225-2406
F: (202) 225-1725
Gregory Meeks
E-mail: congmeeks@mail.house.gov
P: (202) 225-3461
F: (202) 226-4169
Darlene Hooley
E-mail
P: (202) 225-5711
F: (202) 225-5699
Bennie Thompson
E-mail
P: (202) 225-5876
F: (202) 225-5898
David Scott
E-mail
P: (202) 225 - 2939
F: (202) 225 - 4626
Joe Crowley
E-mail
P: (202) 225-3965
F: (202) 225-1909
Brad Sherman
E-mail
P: (202) 225-5911
F:(202) 225-5879