Postings

More than 100 non-profit groups support bill that would require corporations to disclose important data to address potential profit shifting
A coalition of more than 100 non-profit groups called on Reps. Waters and McHenry to consider country-by-country reporting in the Disclosure of Tax Havens and Offshoring Act (H.R. 5933). The bill would require large, publicly-traded corporations to disclose key financial information (e.g. profits, revenues, taxes, number of employees, etc.) on a country-by-country basis to better inform taxpayers, investors, policymakers, academics, and other stakeholders and ensure that we emerge from the COVID-19 pandemic on the path to sustainable and equitable economy.

FDIC plans to preempt state lending protections is met with ire from advocates
Consumer Action joined with a broad coalition of advocacy organizations in warning the Federal Deposit Insurance Corporation (FDIC) that its proposed rule for chartering additional underregulated Industrial Loan Companies (ILCs) would expand predatory, high-interest lending. The plan would grant the predominantly online non-bank companies that are approved for an ILC with preemptory powers over state consumer protection laws, including interest rate caps. The FDIC is already turning a blind eye to rent-a-bank schemes where non-bank lenders piggyback off ILC and bank charters to issue loans of around 100% APR and higher.

Labor Department should withdraw policy that lets private equity loot retirement plans
Nineteen organizations and individuals that advocate on behalf of consumers, workers, investors and retirees have called on the Department of Labor (DOL) to withdraw its controversial policy statement opening the door to private equity investments in 401(k) plans. These investments are likely to saddle middle-class retirement savers with high costs and lock them into unnecessarily complex investments that underperform publicly available alternatives. The coalition called on DOL to withdraw the policy statement until it can conduct a more careful and balanced analysis of the potential risks and benefits of including a private equity component in retirement plan investments.

HUD must do more to protect older reverse mortgage borrowers
Advocates sent a letter to the U.S. Department of Housing and Urban Development (HUD) seeking stronger protections for reverse mortgage borrowers in response to the COVID-19 pandemic. The agency announced a 60-day halt on foreclosures of all FHA-insured mortgages, but this timeframe falls short in light of projections of the long-term impact of this crisis.

Advocates call for automatic discharge of student loan debt for disabled borrowers
A coalition of more than 30 advocate groups asked Education Secretary Betsy DeVos to automatically erase the federal student loan debt of roughly 350,000 student borrowers with disabilities nationwide. Currently, the Department’s application process is so burdensome that most disabled borrowers never get the help they're entitled to under law, while many more are not even aware that they qualify for a loan discharge. In fact, over 60% of eligible borrowers identified have not applied for the relief. In the worst cases, the Department has gone as far as seizing disability benefits that many borrowers with disabilities depend on to survive, as a means to collect on defaulted federal student loans. These borrowers are due critical relief now.

Federal deregulation attempts increase barriers to affordable housing
All over the country, housing unaffordability has become a crisis. The number of households spending more than half of their income on housing payments has skyrocketed in the past decade. Almost 50% of renters are struggling with unaffordable rents, and the homeless population is rapidly growing in high cost areas. In response to this national crisis, the Department of Housing and Urban Development published a request for information to examine how regulations could be creating barriers to affordable housing. In response, advocates point out that it's not regulatory efforts, but moves to deregulate the housing and financial markets that are eroding and withdrawing crucial commonsense oversights, thereby increasing barriers to affordable housing.

OCC proposal could greenlight predatory lending schemes
Consumer Action joined a coalition of more than 100 organizations in opposing a proposed rule from the Office of the Comptroller of the Currency (OCC) that would facilitate predatory loans. Specifically, the proposed rule would make it easier for payday and other high-cost lenders to use banks as a fig leaf to offer predatory loans at interest rates of 100 percent APR or higher that are prohibited under state rate cap laws. This scheme is known as “rent-a-bank” or “rent-a-charter.”

Advocates applaud the Fed’s faster payments system, but urge fraud protection
Consumer and privacy advocates applauded the announcement by the Federal Reserve Board (the Fed) that it will develop a real-time payment system, while urging the Fed to ensure protection against scammers and criminals who use faster payment systems to receive and move money.

Stop banks from helping predatory payday lenders evade state regulations
More than five dozen public interest groups expressed deep concern about “rent-a-bank schemes” in letters to federal banking agencies, explaining that several nonbank consumer payday lenders have set their sights on using partnerships with banks to evade newly enacted interest rate restrictions in California.

Revamping the CFPB’s “Qualified Mortgage” standard could impact credit availability
The Consumer Financial Protection Bureau’s (CFPB) proposed changes to the Qualified Mortgage (QM) definition would allow the government-sponsored enterprise (GSE) patch to sunset in 2021. Advocates warn that terminating the patch could cut off adequate access to mortgage credit to borrowers who are self-employed or more likely to work non-traditional jobs and don’t often conform to traditional QM standards, including borrowers of color and borrowers with student debt.

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