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Op-Ed

Despite Stellar Record, CFPB Remains Under Attack

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Charlene Crowell

By Charlene Crowell
NNPA Columnist

 

In everyday life, birthdays and anniversaries of many sorts are observed and celebrated. When it comes to consumer finance, there are two more anniversaries worth celebrating.

Congress enacted the Dodd-Frank Wall Street Reform Act on July 21, 2010 in response to the largest national economic challenge since the Great Depression. A key goal was and remains to protect the nation and its taxpayers from ever again bearing the financial burdens of risky deals by Wall Street and other private financial players. The following year, the Consumer Financial Protection Bureau (CFPB) opened its doors to serve the needs of America’s consumers.

Before the CFPB, no single federal agency had consumers as its sole priority and focus. To date, the Bureau has benefited 17 million consumers through a total of $10.1 billion in financial relief. More than 650,000 consumers have chosen to use its flexible complaint system that includes the options of online, written and telephone complaints in multiple languages.

On the enforcement side, CFPB’s actions have addressed multiple violations in different lending areas:

• In 2013 Chase Bank USA, N.A. and JPMorgan Chase Bank, N.A. was ordered to refund an estimated $309 million to more than 2.1 million customers for illegal credit card practices.

• The following year, Flagstar Bank was fined $37.5 million for violating the CFPB’s mortgage servicing rules by illegally blocking 6,500 borrowers’ attempts to save their homes.

• That same year, Colfax Capital Corporation and Culver Capital, LLC, also collectively known as “Rome Finance,” was ordered to pay $92 million in debt relief to 17,000 service members and other consumers for masking high-cost financing charges on artificially-inflated costs for goods and services.

• ACE Cash Express, operating over 1,500 storefront payday locations in 36 states, was ordered in 2014 to pay $10 million in restitution and penalties for its threats of criminal prosecution and intimidating phone calls that “create a sense of urgency” when contacting delinquent borrowers.

• Earlier this year, $480 million in debt relief to student loan borrowers who were wronged by the now-defunct Corinthian Colleges.

In recent days, the CFPB announced two additional enforcement actions involving illegal and deceptive credit card violations, and another for illegal private student loan servicing practices. As a result, Citigroup was ordered to refund $700 million to 8.8 million consumers and pay separate fines totaling $35 million. Discover Bank and its affiliates will refund $16 million to consumers, pay a $2.5 million penalty and improve its billing, student loan interest reporting and collection practices.

Additionally, 30 million consumers plagued by debt collectors now have the chance to be treated fairly because of CFPB’s first-time ever supervision of debt collection companies. The 12 million consumers who borrow payday loans will soon have more protection by a CFPB rule that addresses the myriad abuses wrought by triple-digit interest rates.

This and other abundant data suggest that America’s consumers are well-served by its four-year old consumer cop-on-the-beat.

Despite CFPB’s productivity, its critics have remained steadfastly opposed. Dozens of bills have been introduced to undermine its independence, its rules to protect against unfair deceptive and discriminatory practices, and its authority to oversee financial services such as payday lenders and auto finance companies.

When the Bureau took action against auto lenders who participated in pricing schemes that charged Black and Latino borrowers more for their loans, congressional critics organized threatening letters questioning their rationale and motives. And when the Bureau adopted new rules to rein in abuses in mortgage lending, those same critics rushed to file bills to weaken the rules and return to the very practices that lead up to the foreclosure crisis.

Fortunately, none of the attacks have made it into law.

At a July 8 Brookings forum that focused on the Wall Street reform law, Treasury Secretary Jack Lew was asked by a reporter about the effort to abolish CFPB.

“I will say, for all of the concerns that a lot of people had early in its history, as they’ve taken action there’s been broad, overwhelming support for the fact that they’ve done things in a careful and sensible way, listening to all sides,” said Secretary Lew. “So I think if you kind of step away from the debate that took place before the CFPB was created and look at the track record, it should put to rest a lot of that controversy.”

Others who agree with Treasury Secretary have also spoken up in its defense.

“The Consumer Financial Protection Bureau has built an unprecedented record of success protecting our nation’s consumers and service members who have been victimized by unscrupulous corporations and financial institutions, noted Congresswoman Maxine Waters, the Ranking Member on the House Financial Services Committee and a member of the Congressional Black Caucus.

“The CFPB has been, and continues to be, party to a wide array of enforcement actions related to practices that disproportionately affect communities of color, including deceptive marketing, unlawful debt collection, discrimination, unlawful fees and fraudulent mortgage relief schemes,” continued Waters.

A recent consumer survey by the Center for Responsible Lending and Americans for Financial Reform found that although anger at banks and other financial services companies has moderated over their role in the housing crisis, broad and bipartisan support for CFPB remains. When consumers self-identified as likely 2016 voters were asked to choose between more and less regulation of financial companies 71 percent side with more, and 20 percent with less. Additionally, 64 percent of these voters saw a need for an agency charged with protecting consumers against dangerous financial products.

So it seems that public sentiment sides with CFPB continuing its important work to protect consumer credit and finances.

“I’m truly proud of the CFPB’s outstanding success on behalf of our nation’s active-duty military, restoring tens of millions to service members.  And I applaud the Bureau for the work it’s doing to rein in payday lenders that have turned a business intended to help hard working consumers stay out of financial trouble into one that often creates trouble instead,” added Congresswoman Waters.

“I am hopeful that soon, the CFPB will eventually yield a strong and simple rule that protects our low-income and minority communities from unaffordable rates and unfair terms,” she concluded.

 

Charlene Crowell is a communications manager with the Center for Responsible Lending. She can be reached at 919-313-8523.

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Commentary

California Respects the Power of Your Vote

As California Secretary of State, I do not take the progress we have made over the years lightly. My staff and I hold sacred the obligation to ensure that our elections are safe, free, fair, and accessible to all. Therefore, before certifying the results for this year’s election on Dec. 13, we have taken a number of steps to ensure that every vote is counted. We have also made sure that our ballot counting process is credible and free from interference.  

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Shirley N. Weber, Ph.D., California Secretary of State. Courtesy of California Secretary of State Office.
Shirley N. Weber, Ph.D., California Secretary of State. Courtesy of California Secretary of State Office.

By Shirley N. Weber, Ph.D.,
California Secretary of State

Californians can confidently claim this: California has made more significant reforms to our election laws and expanded voting rights than any other state.

The relevance of this accomplishment deepens as we prepare to celebrate the 60th anniversary of the Voting Rights Act next year. This landmark legislation began to undo our country’s long history of voter suppression, intimidation, and disenfranchisement that far too many Americans experienced at the polls for decades.

My own parents, who were sharecroppers, were denied their right to vote in the Jim Crow era South. Before moving to Los Angeles from Hope, Arkansas, my parents, David and Mildred Nash, could not vote. My father was an adult with six children before he registered to vote and was only able to exercise that constitutional right for the first time here in California.

As California Secretary of State, I do not take the progress we have made over the years lightly. My staff and I hold sacred the obligation to ensure that our elections are safe, free, fair, and accessible to all.

Therefore, before certifying the results for this year’s election on Dec. 13, we have taken a number of steps to ensure that every vote is counted. We have also made sure that our ballot counting process is credible and free from interference.

To meet that deadline without a hitch, California requires elections officials in all 58 counties to turn in their official results by a certain date. This year, that date was Dec. 6.

By law, every eligible voter in our state receives a vote-by-mail ballot. This ensures all registered voters can exercise their right to vote.

Whether you placed your ballot in a designated drop-off box, voted by mail, or cast your ballot at a polling center, votes are safe and secure. And we allow voters to sign up to receive text message, email, or voice call notifications about the status of their own ballots by using the Where’s My Ballot? tool. To learn more or to sign up, paste this URL in your web browser: https://california.ballottrax.net/voter/

The ballots of Californians who voted by mail are also protected. The United States Postal Service partners with the State to make sure ballots are delivered on time. All mailed-in ballots are sent by First Class mail with a postage paid envelope provided to every eligible registered voter.

Election Security is our No. 1 priority. That’s why my office designed and implemented a program to back up that commitment.  For more information, visit this URL: https://www.sos.ca.gov/elections/election-cybersecurity

Additionally, California takes preventive actions to make sure our voting technology keeps our elections safe and protects everyone’s votes.

For example, county voting systems are not connected to the internet, which protects them from cyberthreats. The State also performs regular and rigorous testing to make sure the voting systems are working optimally, and only authorized personnel are granted access.

Staff members are also given phishing and cybersecurity training.

VoteCal, the state’s centralized voter registration system, is also key. The system is regularly updated, and it is used as a resource for counties to verify voter signatures.

California also provides security at all counting locations and makes sure ballot drop-off boxes are secured and monitored.

And all election processes are open to observation during specified hours.

In my role as Secretary of State of California, there is nothing more important to me than defending our democracy.

I am committed to safeguarding voting rights, and to leading our state in upholding the highest democratic standards by implementing policies and practices that Californians and all Americans can trust and look to for instruction and hope.

You can contact the California Office of the Secretary of State at 1-800-345-Vote or elections@sos.ca.gov with inquiries or to report suspected incidents or irregularities. Additional information can be found at www.sos.ca.gov and the office’s social media platforms: 

Instagram: @californiasos_
Facebook: Facebook.com/CaliforniaSOS
X: @CASOSVote

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Activism

COMMENTARY: PEN Oakland Entices: When the News is Bad, Try Poetry

Strongman politics is not for the weak. Here in the U.S., Donald Trump is testing how strongman politics could work in the world’s model democracy.

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iStockphoto.
iStockphoto.

By Emil Guillermo

As the world falls apart, you need more poetry in your life.

I was convinced on Tuesday when a weak and unpopular president of South Korea — a free nation U.S. ally — tried to save himself by declaring martial law.

Was it a stunt? Maybe. But indicative of the South Korean president’s weakness, almost immediately, the parliament there voted down his declaration.

The takeaway: in politics, nothing quite works like it used to.

Strongman politics is not for the weak. Here in the U.S., Donald Trump is testing how strongman politics could work in the world’s model democracy.

Right now, we need more than a prayer.

NEWS ANTIDOTE? LITERATURE

As we prepare for another Trump administration, my advice: Take a deep breath, and read more poetry, essays and novels.

From “Poetry, Essays and Novels,” the acronym PEN is derived.

Which ones to read?

Register (tickets are limited) to join Tennessee Reed and myself as we host PEN OAKLAND’s award ceremony this Saturday on Zoom, in association with the Oakland Public Library.

Find out about what’s worth a read from local artists and writers like Cheryl Fabio, Jack Foley, Maw Shein Win, and Lucille Lang Day.

Hear from award winning writers like Henry Threadgill, Brent Hayes Edwards and Airea D. Matthews.

PEN Oakland is the local branch of the national PEN. Co-founded by the renowned Oakland writer, playwright, poet and novelist Ishmael Reed, Oakland PEN is special because it is a leader in fighting to include multicultural voices.

Reed is still writing. So is his wife Carla Blank, whose title essay in the new book, “A  Jew in  Ramallah, And Other Essays, (Baraka Books), provides an artist’s perspective on the conflict in Gaza.

Of all Reed’s work, it’s his poetry that I’ve found the most musical and inspiring.

It’s made me start writing and enjoying poetry more intentionally. This year, I was named poet laureate of my small San Joaquin rural town.

Now as a member of Oakland PEN, I can say, yes, I have written poetry and essays, but not a novel. One man shows I’ve written, so I have my own sub-group. My acronym: Oakland PEOMS.

Reed’s most recent book of poetry, “Why the Black Hole Sings the Blues, Poems 2007-2020” is one of my favorites. One poem especially captures the emerging xenophobia of the day. I offer you the first stanza of “The Banishment.”

We don’t want you here
Your crops grow better than ours
We don’t want you here
You’re not one of our kind
We’ll drive you out
As thou you were never here
Your names, family, and history
We’ll make them all disappear.

There’s more. But that stanza captures the anxiety many of us feel from the threat of mass deportations. The poem was written more than four years ago during the first Trump administration.

We’ve lived through all this before. And survived.

The news sometimes lulls us into acquiescence, but poetry strikes at the heart and forces us to see and feel more clearly.

About the Author

Emil Guillermo is a journalist and commentator. Join him at www.patreon.com/emilamok

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Bay Area

In the City Attorney Race, Ryan Richardson Is Better for Oakland

It’s been two years since negotiations broke down between the City of Oakland and a developer who wants to build a coal terminal here, and the issue has reappeared, quietly, in the upcoming race for Oakland City attorney. Two candidates are running for the position of Oakland City Attorney in November: current Assistant Chief City Attorney Ryan Richardson and retired judge Brenda Harbin-Forte.

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Members of Oaklanders Defending Democracy political action committee with Oakland Mayor Sheng Thao, center. Courtesy photo.
Members of Oaklanders Defending Democracy political action committee with Oakland Mayor Sheng Thao, center. Courtesy photo.

By Margaret Rossoff

Special to The Post

OPINION

It’s been two years since negotiations broke down between the City of Oakland and a developer who wants to build a coal terminal here, and the issue has reappeared, quietly, in the upcoming race for Oakland City attorney.

Two candidates are running for the position of Oakland City Attorney in November: current Assistant Chief City Attorney Ryan Richardson and retired judge Brenda Harbin-Forte.

Richardson has worked in the Office of the City Attorney since 2014 and is likely to continue current City Attorney Barbara Parker’s policies managing the department. He has committed not to accept campaign contributions from developers who want to store and handle coal at a proposed marine terminal in Oakland.

Retired Judge Harbin-Forte launched and has played a leading role in the campaign to recall Mayor Sheng Thao, which is also on the November ballot.  She has stepped back from the recall campaign to focus on her candidacy. The East Bay Times noted, “Harbin-Forte’s decision to lead the recall campaign against a potential future client is … troubling — and is likely to undermine her ability, if she were to win, to work effectively.”

Harbin-Forte has refused to rule out accepting campaign support from coal terminal interests or their agents. Coal terminal lobbyist Greg McConnell’s Independent Expenditure Committee “SOS Oakland” is backing her campaign.

In the 2022 mayor’s race, parties hoping to build a coal terminal made $600,000 in contributions to another of McConnell’s Independent Expenditure Committees.

In a recent interview, Harbin-Forte said she is open to “listening to both sides” and will be “fair.” However, the City Attorney’s job is not to judge fairly between the City and its legal opponents – it is to represent the City against its opponents.

She thought that the 2022 settlement negotiations ended because the City “rejected a ‘no coal’ settlement.” This is lobbyist McConnell’s narrative, in contrast to the report by City Attorney Barbara Parker. Parker has explained that the City continued to negotiate in good faith for a settlement with no “loopholes” that could have allowed coal to ship through Oakland – until would-be coal developer Phil Tagami broke off negotiations.

One of Harbin-Forte’s main priorities, listed on her website, is “reducing reliance on outside law firms,” and instead use the lawyers working in the City Attorney’s office.

However, sometimes this office doesn’t have the extensive expertise available that outside firms can provide in major litigation. In the ongoing, high stakes coal litigation, the City has benefited from collaborating with experienced, specialized attorneys who could take on the nationally prominent firms representing the City’s opponents.

The City will continue to need this expertise as it pursues an appeal of the judge’s decision that restored the developer’s lease and defends against a billion-dollar lawsuit brought by the hedge fund operator who holds the sublease on the property.

Harbin-Forte’s unwillingness to refuse campaign contributions from coal terminal interests, her opposition to using outside resources when needed, as well as her uncritical repetition of coal lobbyist McConnell’s claim that the City sabotaged the settlement talks of 2022 all raise serious concerns about how well she would represent the best interests of Oakland and Oaklanders if she is elected City Attorney.

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