This amendment, to be offered by Senator Sheldon Whitehouse (D-RI) during the floor debate on the Restoring American Financial Stability Act (S. 3217), would restore to the states the ability to enforce interest rate caps against out-of-state lenders. By doing so, it would level the playing field so that local lenders such as community banks, local retailers, and credit unions no longer are bound by stricter lending limits than national banks and credit card companies.
federal reg reform
Auto dealers are concerned about a federal consumer financial protection agency because they often broker loans, in partnership with banks or credit unions, for car purchases—in fact, they issue almost 80 percent of loans and leases used for car purchase. With $850 billion in outstanding balances, dealer-issued car loans comprise a market as large as the credit card market.
“This law is about making capitalism work for all Americans, urban and rural, white and black, for men and for women,” said John Taylor, president & CEO of NCRC, at the hearing. “Strengthening CRA would promote sustainable housing and small business development. It would create jobs and revitalize communities across America.”
Recent projections of a slow recovery in the labor market prompted the effort, which would also keep 5,500 law enforcement officers on the beat, allow localities to hire additional firefighters, and provide on-the-job training to help local businesses create employment opportunities.
“While there is room for improvement, we believe this bill goes a long way towards creating a financial system in which all Americans can safely borrow, save, and flourish,” says Woodstock Institute president Dory Rand. “We support Sen. Dodd’s efforts to stand strong against the interests of Wall Street and create a bill that puts Main Street first.”
We must ensure that the result of negotiations is not a toothless and ineffectual regulator that lacks the resources and authority it needs to keep financial products safe, sustainable, and available.
If you are…
- Paying off credit cards that are charging you from 16% to 300% interest and penalties,
- Forced to use payday loans with interest rates over 200%,
- Unable to find credit to pay your household bills, and
- A small business owner dependent on credit cards to pay your operational expenses and increased health care insurance for you, your family and your employees
Then you know that Senate banking reforms need to kick-start small businesses and protect our families.
Let's make sure that the voices of the financial industry are not the only ones heard by Washington. Please call Senate Banking Committee Chairman Chris Dodd (D-CT) and Banking Committee Member Evan Bayh (D-IN) during the Americans for Financial Reform National Senate Call-In Week of March 1-March 4 and tell them to support financial reform that holds Wall Street accountable, including the creation of a strong and independent Consumer Financial Protection Agency.