NAACP Supported Legislation to Provide Much Needed Protection to Consumers Against Predatory Lending and Prevent Deceptive Practices Passes House of Representatives

 

WASHINGTON DC – The NAACP applauds the US House of Representatives today for passing sweeping financial reform, including the creation of the Consumer Financial Protection Agency.

“For far too long the responsibility for regulating financial services were put in the hands of agencies whose primary responsibility is to respect the solvency of the financial services industry.  The CFPA will be a monumental step in actually providing protection for Americans throughout our country,” stated Hilary O. Shelton, Director of the NAACP Washington Bureau and Sr. Vice President for Advocacy and Policy.

The system of consumer protection fails to protect American families from the most basic abuses that can cost households hundreds of thousands of dollars, and even their homes.  Current laws and enforcement allow a range of institutions to escape supervision because responsibility for consumer protection is fragmented across too many regulators and many finance companies are not regulated at all at the Federal level. 

In the recent crisis, many of the people who were targeted by unscrupulous lenders lost their savings, their financial security, and in too many cases their homes.  Furthermore, millions of American families saw their retirement savings or even their children’s college funds fall dramatically.  The CFPA would focus on the core reforms that will address the causes of the current crisis, make the system more stable and resilient and give the government tools to better anticipate, avoid and address a potential future crisis.

“The NAACP strongly supports this much needed consumer protection proposal and applauds the US House for making civil rights an important component of the new agency’s stated mission and create a Civil Rights/Fair Lending Compliance and Enforcement Office,” added Shelton.  “We hope that the Senate will now follow suit and pass this much needed legislation and send this bill that creates a consumer friendly regulatory agency to President Obama’s desk for signature, and put an end to the cycle of abuse on American consumers and protect American families,” concluded Shelton.

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Founded in 1909, the NAACP is the nation's oldest and largest civil rights organization. Its members throughout the United States and the world are the premier advocates for civil rights in their communities, conducting voter mobilization and monitoring equal opportunity in the public and private sectors.

 

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