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About The skanner. (Portland, Or.) 1975-2014 | View Entire Issue (July 4, 2012)
Opinion House Bill Undermines Consumer Protection I n the aftermath of the success- ful effort to better protect con- sumer finances, the Consumer Financial Protection Bureau (CFPB) is now facing a forceful effort to undermine its mission and operation. Even before CFPB reaches its first anniversary of operation, proposed federal legis- lation that would exempt a variety of non-bank lenders has attracted 19 co-sponsors representing por- tions of Arizona, California, Geor- gia, Illinois, Maryland, Mississippi, Missouri, New Mexi- co, New York, North Carolina, Ohio, Texas, and Wisconsin. House Bill 1909, sponsored by California Rep. Joe Baca (R- Calif.), seeks to create a new fed- eral charter for non-bank financial service providers that would bypass CFPB. It would also pre- empt state consumer protection laws and rollback consumer gains nationwide. Several states have already passed strong consumer protections against the very same lenders this federal legislation would reverse. If enacted, non- bank lenders would no longer be subject to the federal Truth in Lending Act, which requires dis- R ESPONSIBLE L ENDING Charlene Crowell closure of the cost of credit as an annual percentage rate (APR). The beneficiaries of this legisla- tion would be a wide range of businesses that offer reloadable prepaid debit cards, payday and car title loans, rent-to-own agree- ments, pawn shops, check cashing services and more. On the losing side would be 30 million consumers who either have no bank account – the unbanked – or those who use very limited bank services – the under- banked. Further, if enacted, a two- tiered financial system would be created and the almost certain exploitation of consumers using these products. According to the Federal Deposit Insurance Corporation (FDIC), Black consumers repre- sent more than 30 percent of under-banked households and more than 20 percent of unbanked. Black consumers together with Hispanic, American Indian/Alaskan and consumers represent 56 percent of all unbanked households. Businesses that provide goods or services at a competitive and fair price earn a loyal customer base; they offer consumers for value for their hard-earned dollars. Yet many non-bank financial servic- es included in HB 1909 have product that leaves a consumer worse off financially than before can hardly be termed a service. Fortunately, a number of con- sumer advocates are actively working to oppose the renewed de-regulation efforts, including Americans for Financial Reform and U.S. PIRG. In announcing its opposition to HR 1909, the Washington, D.C.- based Consumer Federation of America, was as clear as it was direct. “We oppose any steps On the losing side would be 30 million consumers who either have no bank account – the unbanked – or those who use very limited bank services – the under-banked never fit that description. Instead, their “repeat business” results from high fees that entrap customers into long-term debt. The irony is that these same “ser- vices” were marketed as short- term transactions. Any financial intended to remove non-bank lenders from the oversight of the Consumer Financial Protection Bureau.” In a recent letter to Capitol Hill lawmakers the Center for Respon- sible Lending noted, “This shift exposes consumers and the finan- cial services marketplace to the very dangers that contributed to the economic crisis. The CFPB was created for the sole purpose of protecting consumers through oversight, rulemaking and enforcement of the rules for the very consumer financial products marketed and sold by the compa- nies covered in this legislation.” It added, “Less than six months after the Consumer Financial Pro- tection Bureau has been fully operational with a director in place, H.R. 1909 or similar legis- lation would backtrack on Con- gress’ promise to consumers. These bills offer nothing new or beneficial for consumers – and removing consumer finance com- panies from CFPB oversight will set a precedent for many other companies to also seek to be excluded.” Charlene Crowell is a communi- cations manager with the Center for Responsible Lending. A Roadmap for the Commission on Black Affairs T wenty-six years ago I became the first full-time executive director for the Oregon Commission on Black Affairs (OCBA). Created by ORS 185.410, the OCBA is charged to work for the implementation and establishment of economic, social, legal and political equality for Oregon’s African American and Black populations. Excited about working with a group with so much potential, I envisioned it as a visible and forceful body, working to influence State policy on behalf of Black families and children in Oregon. After all, how could it not be powerful when by law, it exists to serve the State of Oregon and by law, is authorized to: * Monitor existing programs and legislation designed to meet the B LACK A FFAIRS Kathleen Sadaat whether the advocacy Commis- sions are relevant. If one reads the Urban League of Portland’s report, “The State of Black Ore- gon,” it is clear that disparities still exist between the health and well- being of Black Oregonians when compared with our white popula- tion. These documented dispari- ties make the OCBA relevant. It is now time for it to become more visible and demonstrate its effec- tiveness in carrying out its respon- sibilities. The state can help by making sure all Commission members understand both their responsibili- These documented disparities make the OCBA relevant. It is now time for it to become more visible and demonstrate its effectiveness in carrying out its responsibilities needs of African Americans and Blacks * Identify and research concerns and issues affecting the African American and Black community, and to recommend actions to the governor and to the Legislative Assembly, Including recommen- dations on legislative programs; * Act as a liaison between the African American, Black commu- nity and Oregon’s government * Encourage African American and Black representation on state Boards and Commissions * The Commission may serve as advocate, analyst, instructor, mon- itor, and advisor. The most recent negative public- ity about the Commission has again raised the question of ties and how to effectively interact with state systems. I hope by now the state has a comprehensive ori- entation for new Commissioners and a clear explanation of expecta- tions both of individual Commis- sioners and of the Commission as a state funded body. A requirement for OCBA to set goals and submit regular progress reports to the governor at specified intervals would demonstrate the governor’s ongoing interest in the issues and perhaps engender greater attention of state govern- ment. The Commission on Black Affairs must engage Oregon’s Black communities in dialogue about state policies and programs and generate recommendations for revised and/or new policies and programs. The Commission must use their legislative repre- sentatives to help traverse the complications of state govern- ment. The OCBA must use ways (in addition to meeting minutes) to inform the statewide public of its vision and accomplishments. Above all, the OCBA must put all of its effort into carrying out its mission and its mandate to serve the African American and Black communities of Oregon. Week on the Web Busting the Myth of the Freeloading Bicyclist ... In Opinion For The Skanner News on your smart phone go to www. theskannermobile.com or scan this QR code with your app. Services Planned for Harold Williams Sr. ... In Obitu- aries Supreme Court Ruling: ‘Threat to Democracy’ or ‘Victory for All Ameri- cans?’ ... In NW News www. The Skanner.com has the latest news from Portland and beyond, on your mobile or your desktop, it’s your go-to place for the news you won’t see in mainstream publications. It’s your community. It’s The Skanner. July 4th, 2012 The Portland Skanner Page 5
