David Sirota
Sirota has a summary of the GOP "Ney Bill" that looks like the Bankruptcy Debacle Part Two. Not content to make Americans destitute with low wages, ever increasing medical plan costs, and credit card company razzle-dazzle, the GOP is supporting legislation to enhance the coffers of predatory lenders.
A summary of his summary below, along with a link to the Center for Responsible Lending that has comparisons of the GOP and Democratic Party proposed legislation. What does the Ney Bill do? Read on....
"RAISES FEES: The bill allows lenders to tack on another 2 percent in fees on subprime loans offered to people with less-than-perfect credit.
PENALIZES PEOPLE FOR SUCCEEDING: The bill allows lenders charge big penalties for paying off a loan early, essentially locking buyers into high-interest loans even if they have the money to pay it off.
HIDES EXORBITANT FEES/SURCHARGES: The bill allows a lender to roll predatory lenders' exorbitant fees into the someone's loan....In other words, not regulating this gives predatory lenders a devious way hide their high fees, but still make you pay them.
LIMITS CONSUMER RIGHTS: The bill actually limits borrowers legal rights in seeking recourse when predatory lenders screw them over. Disgusting "tort reform" efforts never cease to rear their ugly head in any of these bills.
PRE-EMPTS STATE LAWS THAT PROTECT CONSUMERS: Perhaps worst of all, the bill essentially pre-empts state laws that regulate predatory lending."
David Sirota
And why is this important?
"Predatory lending strips billions in wealth from low-income consumers and communities in the U.S. each year. Borrowers lose an estimated $9.1 billion annually due to predatory mortgages; $3.4 billion from payday loans; and $3.5 billion in other lending abuses, such as overdraft loans, excessive credit card debt, and tax refund loans.
The Center for Responsible Lending is fighting to stop these financial abuses through legislative and policy advocacy, coalition-building, litigation, and industry research.
Center for Responsible Lending