Congresswoman Maxine Waters Supports Protection for American Consumers from Risky, Costly Mortgages, Loans and Credit Cards
(as prepared for delivery)
Thank you Mr. Chairman, and thanks to all of the consumer groups who are here with us today. At a time when it seems the banking industry has three lobbyists for each Member of Congress, your efforts are more important than ever.
We are here this morning to express our resounding support for the proposed Consumer Financial Protection Agency. Consumers have been abused and exploited for too long, and the time has come for us to take a stand against predatory practices and pass this bill.
America's current economic crisis was caused in part by a lack of regulation over consumer financial products initiated by both banks and non-banks, who were allowed to extend credit without any regulations or standards to guide them. As a result, consumers fell prey to unscrupulous loan initiators who put them into subprime mortgages that they could not afford, such as adjustable rate mortgages, Alt-A loans, and liar loans.
The Consumer Financial Protection Agency would put an end to those practices and regulate the mainstream banking industry and the non-bank and shadow lending industries.
Consumers have also been led astray by the mainstream banking industry. Many large banks encouraged consumers to refinance or take on more debt, using their homes as collateral. As home prices have fallen and many homeowners have lost their jobs and millions of families are being squeezed, the American dream has morphed into a nightmare for millions at risk of losing their homes to foreclosure. These mainstream banks, many of whom pushed these products and operate substantial servicing arms, have shown no leadership and been of little help.
It is my hope that this agency will make sure these types of problems never happen again. We need to make sure that servicing is regulated, as well as financial products including mortgages, pay-day loans and credit cards. Consumers will not be safe until we make sure they can obtain proper support and help with the products that most impact their daily lives. That means that they shouldn't have to wait two hours to speak with their servicer, or wait three months to have their loans considered for modification.
We must stand firm in our support for CFPA, even in the face of opposition from the big banking lobby, and we say, "Enough is enough!" I am encouraged by the presence of leading consumer groups with us here today, and I know there are many more working around the country to build support for the Consumer Financial Protection Agency.
When average Americans hear about this agency, they understand it and they welcome it.
Risky products have endangered people's credit, their income, and their lives, compounding the problems weighing down the American economy.
We must enact CFPA to protect American consumers and families and to help the economy heal.
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