Importantly, the Senate financial reform bill creates a Consumer Financial Protection Bureau that will help our communities access safe and sustainable credit and avoid financial institutions’ tricks and traps.
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.
“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.
Since funding from the CDFI Fund is an extremely competitive process, and it is important that resources be directed to those organizations best able to use of funding to meet the financial needs of low-wealth communities, Woodstock proposes that additional criteria be included to ensure that new financial institutions applying for funding have, as their primary purpose, the financial needs of low-wealth people.
These criteria could include: