We support reforms to the financial marketplace to curb bad practices by banks and lenders.
While problems in the mortgage industry still dominate the news, some financial industry insiders are warning banks and debt collectors to get ready for more scrutiny over how they handle other types of debt – especially credit cards and student loans.
A recent article in the American Bankers Association’s Banking Journal pointed out that since the CFPB’s doors have been open, they have received thousands of complaints about credit card and student loan issues. In the first of two reports last fall about private student loans, the CFPB found “surprises, run-arounds and dead ends” similar to those in the mortgage servicing business.
In addition, starting this month the CFPB will be examining large debt collection companies and looking for bad practices that violate consumer protection laws.
So “prepare now for the change to come,” the article says. And we here at CU like the sound of that!
What should have happened is that the debt of all American middle and lower class debt should have got the financial bailout since we are paying taxes on 100% of our money. The bankruptcy laws need to go back to before The Bush and Republican congress passed to make it harder for ave American but easier for the corporations write it off and than send you a 1099 to where the American citizen has to pay taxes on the rest. Sallie Mae for instance a student loan for a online degree that cost $10,000 but degree is worth nothing!