The 2009 AFFIL Agenda

Published January 22, 2009 @ 09:05AM PT

In 2009, Congress and the President will focus on a comprehensive review of the way financial markets and products are regulated.  AFFIL and other consumer advocates will work for a system that truly protects consumers.  Early in the New Year, look for AFFIL’s new Principles designed to guide the re-regulation of consumer lending.  We want to make sure consumer protections aren’t ignored or overlooked by lawmakers as they have been in the past.

And of course we’ll also continue to focus on our specific issues:  preventing foreclosures, fighting payday and car title lending, ending Binding Mandatory Arbitration (BMA), enforcing fair lending laws, reforming costly overdraft lending, protecting seniors from unscrupulous reverse mortgage lenders, fighting refund anticipation loans and, of course, pushing for further reform of the credit card industry.  Please consider making a donation today so we're as strong as possible for the big year ahead.

Foreclosure Prevention - We’ll keep pushing for Congress to allow judicial modification of home mortgages in bankruptcy court.  This common sense reform could help up to 600,000 homeowners stay in their homes.

Predatory Mortgage Lending – We’ll work for laws and regulations that will prevent a resurgence of irresponsible home lending once the current crisis is over.  We’ll push to require that lenders verify borrowers’ ability to repay the loans they are given, to end incentive structures that pay brokers and employees more for giving borrowers more costly loans, to outlaw indefensible prepayment penalties that trap people in bad loans, and to ensure that whoever ends up owning a mortgage loan is legally liable for any abusive practices by the original lender.

Community Reinvestment Act (CRA) – In 2009, Congress plans to expand and modernize CRA.  When CRA covers all lenders (not just banks) it will be an even more powerful tool for promoting responsible mortgage lending.

Payday Lending – We’ll continue to support state campaigns to eliminate payday lending.  Fourteen  states and DC have outlawed this usurious practice so far – just 36 more to go!  We’ll also support Sen. Durbin’s proposal for a national 36% interest rate cap on small loans, which would put all payday and auto-title lenders out of business with one blow.

Binding Mandatory Arbitration (BMA) – We’ll work to stop credit card issuers and other companies from forcing customers to submit their cases to private arbitrators - who are chosen by the companies.   2009 could see the end of BMA!

Fair Lending Enforcement – Fair lending laws were passed to end discrimination on racial or other grounds.  These laws could be very powerful but have had little impact because they haven’t been enforced.  We’ll work with our partners to make sure that they are.

Credit Card Reform – The Fed’s recently finalized credit card regulations were an important victory, but more is needed.  We’ll encourage both the House and Senate to do their parts in enacting strong legislation for our new President’s signature.

And More – We’ll also work to reform costly overdraft loans, overpriced auto loans, student loans that take decades to repay, predatory reverse mortgages that strip wealth from vulnerable seniors, and Refund Anticipation Loans (RALs) that drain money from Earned Income Tax recipients.