Consumer Protection
solutions
The recommendations below focus on financial protections. There are also Consumer Protection issues in Housing, Higher Education, Internet and Social Media. The recommendations for these can be found in each topic’s individual section.
LENDING
Champion and protect an independent Consumer Financial Protection Bureau. Protect its Office of Fair Lending and Equal Opportunity.
Reinstitute strict restrictions on payday lenders. Balance the interests of borrowers and lenders to ensure fair access to beneficial credit.
As payday lending gains restrictions, watch the “consumer installment loan” market closely for potential predatory lending.
FINANCIAL INSTITUTIONS
Ban fixed fee overdraft programs. Banks can instead charge reasonable interest rates as they do for any small loan.
Strictly and consistently enforce high standards and accountability for credit rating agencies and NRSROs.
DEBT COLLECTION
Require that debt-buying companies provide proof that they own a debt before they can sue a debtor.
Stop debt collectors from harassing consumers and collecting on “zombie” debts.
CREDIT SCORING
Do everything possible to protect unscorable and credit invisible consumers.
Demand that credit-scoring mechanisms be fair to protect consumers from abusive and harmful lending practices.