NEDAP Blasts Capital One/ING Merger Approval

Here, unedited, is NEDAP’s press release, criticizing approval of this merger: STATEMENT FOR IMMEDIATE RELEASE                                                 February 17, 2012 CONTACT: Sarah Ludwig or Alexis Iwanisziw, 212-680-5100                                                               NY GROUPS BLAST FEDERAL RESERVE FOR APPROVING BEHEMOTH CAPITAL ONE-ING MERGER Fed... 

[Read The Full Article]

Crusading Prosecutor Needed

Plea negotiations are underway for a big culprit in the mortgage meltdown in Queens County, however, the problem goes far beyond any individual actor.  As described in today’s NYT’s, what is needed is a full-throttle investigation into the highest levels of  decision making for the reckless lending and heedless securitization by the banks.  The call has gone out for Obama to take a leadership position on this inquiry, and create an interagency task force to pursue civil and criminal... 

[Read The Full Article]

Cordray Describes Focus of CFPB

As reported by the Center for Responsible Lending:  Nonbank financial firms will become a primary focus for the agency, including money transfer agencies, credit bureaus, and private mortgage lenders given that nearly 20 million Americans use their services and pay about $7.4 billion in fees annually. Cordray noted, “Many subprime loans during the housing bubble were made by nonbank mortgage brokers. Since most of these businesses are not used to any federal oversight, our new supervision... 

[Read The Full Article]

CFPB Welcomes Whistleblower Tips

The CFPB welcomes, and expressly protects, whistleblowers who have information about possible violations of Federal consumer financial protection laws.  Section 1057 of the Dodd-Frank Act protects employees and their representatives from retaliation for reporting on vendors, contractors, and competitors who may have violated these laws.  A recent press release advises: Knowledgeable sources with information about potential violations of Federal consumer financial laws may email their information... 

[Read The Full Article]

Pew Study of Bank Fees Reported on in Hispanic Business News

  This article is reprinted from the Hispanic Business News: High Fees, Charges Cause Bank Depositers To Close Accounts Oct. 27, 2011 Angela Carter, New Haven Register, Conn. In Connecticut, 73,000 Households — or 5.3 percent — are unbanked, meaning they lack a checking or savings account, and the numbers are significant nationwide. According to a 2009 survey by the Federal Deposit Insurance Corp., 31 percent of U.S. households that closed a bank account... 

[Read The Full Article]

Income Based Loan Repayments

Today’s NYTimes reports on new federal statistics about student debt and a little-known program to help students repay their loans when they fall on hard times after graduation.  This program is known as Income-Based Repayment, and you can find information about how it works here:  http://www.ibrinfo.org/how.vp.html There’s been a spike in student loan defaults that’s attributable not only to the bad economy, but to the for-profit college industry, which is growing at a fast... 

[Read The Full Article]

Student Loan Bankruptcy Bills Pending

A coalition of Democrats have proposed bills in both the House and Senate which would offer bankruptcy protection to students who have taken out private student loans. Back in the 70′s when the Bankruptcy Code was being revised, private student lenders managed to carve out an exception for themselves and students were denied the protection of listing their private student loans in a bankruptcy petition, a carve out that has never been given to any other private lender.  The thinking at the... 

[Read The Full Article]

Sallie Mae tuition insurance: buyer beware

Among the financial services Sallie Mae offers to students and parents has recently been added a tuition insurance plan in partnership with Next Generation Insurance Group.  According to the NY Times, however, the plan reimburses at different rates for physical and mental health withdrawals from school.  While physical causes for withdrawal result in 100% tuition reimbursement, mental health withdrawals from school are only reimbursed at 75%, and often require a multi-day hospital stay.  The... 

[Read The Full Article]

Debt Deception in Mid-America

Today’s WSJ reports that debt collectors in mid-America have the luxury of being able to pick from among several local courts, and local judges, before they commence a debt-collection lawsuit. And pick they do! Seems some judges out there are known for running unsupervised settlement conferences, and some courts allow their clerks to hand out collection industry questionnaires as if they were court documents.  The way this plays out is that many well intentioned consumers who are showing... 

[Read The Full Article]

Core Functions of the new CFPB

Again, straight from the new agency’s website, these are the core functions of the CFPB: The consumer bureau will work to make sure that consumers have the information they need to understand the terms of their agreements with financial companies. It will also work to make regulations and guidance as clear and streamlined as possible so providers of consumer financial products and services can follow the rules on their own. Congress established the CFPB to protect consumers by carrying... 

[Read The Full Article]