Last night the President spoke of laying, "a new foundation for long-term economic growth, and finally address[ing] the problems that America's families have confronted for years."
Today as I meet with city leaders from around the country at the Cities for Financial Empowerment summit in Baltimore, I am struck by the commonality of the struggles that so many of our consumers face -- consumers who would be protected by the creation of a strong and independent Consumer Financial Protection Agency (CFPA). The debate over the enactment of the CFPA has been overwhelmingly one-sided, and many Americans have been misled about the importance of consumer protection.
Lofty but vague notions of protection cannot begin to answer the multi-million dollar scare-tactics campaign portraying the CFPA as a looming big-government threat to an already fragile national economy. It's time to reset the debate and, finally, get specific about what the CFPA might actually do. A strong and independent CFPA would focus on specific, troubling financial products and services that are stripping those with low and middle incomes of hundreds of billions of hard-earned dollars. To that end, I present my "Top 10 Must-Regulate" list -- the top 10 financial products and services the CFPA could take on to protect American consumers.
10 Financial Products and Services that Must Be Regulated in 2010:
- Overdraft Protection. Overdraft protection cost Americans an estimated 38 billion in 2009. Banks often charge overdraft fees even when, to the great surprise of customers, the bank itself approved the transaction, like at a cash machine or a PIN card purchase. Thankfully, the Federal Reserve Board's new rules, which go into effect this year, will require banks to obtain the consent of their customers before enrolling them in these programs but more must be done.
We must respond to the anger and frustration at both financial institutions and Washington, by addressing the areas where the greatest harm is being done to the greatest number of people -- and where we can now do the most good.