In the era of mass incarceration, racial profiling and unaccountable police brutality, every member of Congress who voted for this bill has to explain why they do not believe people of color deserve the full protection of the federal government, especially given the long documented history of racial discrimination in auto lending.
“The RFIs pose questions that are almost entirely from an industry perspective and are insufficiently specific to elicit meaningful comment. The RFIs hint at changes desired by industry without providing enough detail to inform members of the public who do not have experience with the internal workings of the Bureau or the implications of the questions. This process weighted in industry’s favor is not consistent with the CFPB mandate to focus on consumer protection.”
“’The standard of conduct the agency has articulated appears ambiguous at best,’ Marcus Stanley, policy director at Americans for Financial Reform, said in a statement. ‘It doesn’t simply ban the sales quotas and other compensation practices that lead brokers to put their clients into high-fee, lower-yielding investments.’”
“‘“By voting to roll back the CFPB’s work, senators have emboldened banks and finance companies to engage in racial discrimination by charging millions of people of color more for a car loan than is justified,’ said Rion Dennis of Americans for Financial Reform, an advocacy group. ‘Lawmakers have also opened the door to challenging longstanding agency actions that are crucial to protecting workers, consumers, civil rights, the environment and the economy.’”
Swapping “Bureau” from back to front is not a simple word shuffle, said Lisa Donner, executive director for the advocacy group Americans for Financial Reform. “Doing that signals you want to take the emphasis away from serving consumers — which unfortunately is what Mulvaney’s been doing in many ways — and put it on ‘this is a bureaucracy’,'” Donner said.
Americans for Financial Reform reported that the financial sector spent $2 billion on political activity in the 2016 election cycle, including $1.1 billion in campaign donations and the rest for lobbying. That’s $3.7 million for every member of Congress.
AFR released the document below to provide context on the Congressional testimony of Federal Reserve vice-chair for supervision Randy Quarles, and highlight several areas which we believe Congress should question him about. AFR Backgrounder on Quarles Testimony
“Across party and regional lines, most people think Wall Street has too much influence in Washington. And they think that because it does,” said Lisa Donner, executive director of Americans for Financial Reform, a consortium of labor unions, consumer groups, liberal think tanks and organizations like AARP.
“Payday lenders have spent millions lobbying for rules that would let them exploit consumers, so it’s no surprise they are launching a lawsuit against the CFPB rule, which is about the most sensible consumer protection imaginable. It would require lenders to assess a borrower’s ability to repay a loan so they don’t fall into a cycle of debt, nothing more,” said Lisa Donner, Executive Director, Americans for Financial Reform.
Americans for Financial Reform wrote to the Department of Education to voice concerns with two applications they have proposed for higher education institutions seeking access to emergency relief funds. In addition to creating barriers to accessing the funds, the forms are not available in Spanish, which will preclude potential applicants in Puerto Rico from accessing needed funds.