Released: September 24, 2008

CA to Congress: Protect homeowners and taxpayers

Consumer Action calls for accountability in the bailout plan

Contact: Ruth Susswein (301) 718-2511 or .(JavaScript must be enabled to view this email address)

As Congress decides how and if they should toss a trillion dollar life preserver to the sinking financial services industry today, Consumer Action (CA) urges lawmakers to prevent millions more homeowners from losing their homes by freezing foreclosures and allowing time for loan modifications to occur. CA calls for mandatory loan modifications of unaffordable subprime and nontraditional mortgages as part of any massive bailout plan. Consumer Action calls on Congress to give bankruptcy court judges the flexibility to modify a mortgage to allow families to save their homes and stabilize communities - at no cost to the taxpayer. "If lenders expect to wash their hands of the risky, predatory loans made on the backs of millions of homeowners, then consumers should be assured that Congress will protect their safety net with a stake in the companies it bails out and a system for saving homeowners from preventable bankruptcies", says Consumer Action's Deputy Director of National Priorities Ruth Susswein. CA also asks Congress to protect taxpayers by creating lender accountability through oversight and transparency, as a condition of the bailout. To download a copy of the letter sent to U.S. House and Senate leaders go the download field below. Consumer Action(www.consumer-action.org) is a national, nonprofit education and advocacy organization serving more than 10,000 community based organizations with training, educational modules, and multi-lingual consumer publications since 1971. Consumer Action’s advocacy work centers on credit, banking, and housing issues.

Downloads

CA to Congress: Protect homeowners and taxpayers   (bailout.pdf)