Category Archives: Banking & Lending Issues

‘Most Brazen Corporate Wrongdoer Maneuvers in Memory’: Equifax Forces Potential Victims to Give Up Legal Rights

Sen. Elizabeth Warren (D-Mass.) calls data breach “Exhibit A for why we must stop GOP from reversing the CFPB’s rule protecting your right to join class actions”

By Andrea Germanos, staff writer for Common Dreams. Published 9-8-2017

“It is despicable that Equifax would exploit consumers’ need for identity theft monitoring to avoid accountability for this devastating breach,” said Amanda Werner, arbitration campaign manager at Public Citizen and Americans for Financial Reform. (Photo: GotCredit/flickr/cc)

Not only did Equifax suffer a massive data breach that potentially compromised the personal data of up to 143 million in the U.S. and then wait 6 weeks to inform the public—the credit-reporting company is directing those who want to know if they were a victim of the breach to a service that forces them into a “rip-off clause” that makes them give up their right to file or join class-action lawsuit against the company.

Robert Weissman, president of advocacy group Public Citizen, called it “one of the most brazen corporate wrongdoer maneuvers in memory.” Continue reading

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Venezuela Is About to Ditch the Dollar in Major Blow to US: Here’s Why It Matters

By Darius Shahtahmasebi. Published 9-8-2017 by The Anti-Media

Photo: YouTube

 

Venezuelan President Nicolas Maduro said Thursday that Venezuela will be looking to “free” itself from the U.S. dollar next week, Reuters reports. According to the outlet, Maduro will look to use the weakest of two official foreign exchange regimes (essentially the way Venezuela will manage its currency in relation to other currencies and the foreign exchange market), along with a basket of currencies.

According to Reuters, Maduro was referring to Venezuela’s current official exchange rate, known as DICOM, in which the dollar can be exchanged for 3,345 bolivars. At the strongest official rate, one dollar buys only 10 bolivars, which may be one of the reasons why Maduro wants to opt for some of the weaker exchange rates. Continue reading

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Ditching Watchdog, Betsy DeVos Signals ‘Open Season to Defraud’ Student Borrowers

A week after hiring for-profit college official to oversee fraud unit, Trump’s Education Department terminates relationship with Consumer Financial Protection Bureau

By Julia Conley, staff writer for Common Dreams. Published 9-5-2017

Student debt in the U.S. has reached more than $1.3 trillion. The Department of Education recently announced it would not work with the CFPB to hel students with complaints about their student loan servicers. (Photo: Tom Woodward/Flickr/cc)

Calling the move “outrageous and deeply troubling,” consumer advocates and opponents of skyrocketing student debt spoke out Tuesday against the Trump administration’s decision to end the working relationship between the Department of Education and the government watchdog tasked with helping oversee the federal student loan program and protect borrowers.

At the direction of Congress, under the Dodd-Frank financial reform act, the Department of Education has shared information with the Consumer Financial Protection Bureau (CFPB) since 2011 in order to provide assistance to borrowers with complaints about Federal student loans. But the Department, now run by Secretary Betsy DeVos, informed the Bureau in a letter last week that it was ending the relationship. Continue reading

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Moms’ Group Sounds Alarm Over Worst GOP Bill “You’ve Never Heard Of”

“From car safety to clean air and water, Congress is threatening these lifesaving standards.”

By Julia Conley, staff writer for Common Dreams. Published 8-21-2017

The RAA and REINS Act could impact federal agencies’ ability to impose regulations affecting food safety, among other issues that affect Americans. (Photo: Oregon Department of Agriculture/Flickr/cc)

The environmental group Clean Air Moms Action released a new ad campaign Monday urging voters to fight back against two pending  Republican anti-regulation laws.

The ad is being run in five states where Democratic incumbent senators will be up for re-election in highly-anticipated races in 2018. It features car safety advocate Janette Fennell, who shares a personal story of how an automobile regulation saved her life—the kind of regulation that could be at risk if Congress passes the Regulatory Accountability Act (RAA) and the Regulations from the Executive in Need of Scrutiny (REINS) Act. Continue reading

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Serving Wall Street Predators, GOP Launches Swift Attack on New Rule Protecting Consumers

The rule from the CFPB blocks ‘a fine-print trick that banks and predatory lenders use to evade accountability and conceal illegal behavior’

By Andrea Germanos, staff writer for Common Dreams. Published 7-12-2017

Consumer Financial Protection Bureau architect Sen. Elizabeth Warren (D-Mass.), seen here in 2016, said the new rule from the agency “will allow working families to hold big banks accountable when they’re cheated.” (Photo: New America/flickr/cc)

A new rule by a federal watchdog—hailed as having “paramount importance” for protecting consumers from Wall Street predators and curbing corporate abuses—is under direct attack by Republicans just days after being issued.

The rule from the successful and broadly-supported Consumer Financial Protection Bureau (CFPB) bans companies from using mandatory arbitration clauses, which makes consumers give up their right to file or join class-action lawsuits. In other words, it blocks “rip-off clauses” that are “a fine-print trick that banks and predatory lenders use to evade accountability and conceal illegal behavior,” as advocacy group Public Citizen put it, noting that they are also used by many corporations. Continue reading

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Debt Relief—Japanese-style—Could Work Here

Japan has found a way to write off its national debt without creating inflation. Why can’t we do that?

By . Published 7-3-2017 by YES! Magazine

Minatomirai 21, newly developed bayside district in Yokohama, Japan. Photo: Gleam [CC-BY-SA 3.0] via Wikimedia Commons

Let’s face it. The U.S. government is never going to pay back a $20 trillion federal debt. The taxpayers will just continue to pay interest on it, year after year.

A lot of interest.

If the Federal Reserve raises the Federal Funds Rate, which is the interest major banks charge each other for overnight loans, to 3.5 percent and sells its federal securities into the market, as it is proposing to do, the projected tab will be $830 billion annually by 2026. That’s nearly $1 trillion owed by the taxpayers every year, and that just covers interest. Continue reading

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UN Expert Touts Universal Basic Income as “Bold and Imaginative Solution’ to Poverty

“In today’s world of severe economic insecurity, creativity in social policy is necessary.”

By Andrea Germanos, staff writer for Common Dreams. Published 6-23-2017

U.N. special rapportuer Philip Alston says a “basic income offers a bold and imaginative solution to pressing problems that are about to become far more intractable as a result of the directions in which the global economy appears inexorably to be heading.” (Photo: Generation Grundeinkommen/flickr/cc)

Amplifying the call for a universal basic income, a United Nations expert has presented a report describing the idea as “a bold and imaginative solution” at a time of growing economic insecurity.

“People feel exposed, vulnerable, overwhelmed, and helpless and some are being systematically marginalized both economically and socially,” Philip Alston, U.N. Special Rapporteur on extreme poverty and human rights, told the Human Rights Council. “But the human rights community has barely engaged with this resulting phenomenon of deep economic insecurity,” he said. Continue reading

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How Much to Buy a Congressional Vote? New Research Seeks Answer

Looking at Democrats who stopped supporting banking rules, authors conclude: ‘Substantial numbers of legislators sell out the public interest in exchange for political money’

By Lauren McCauley, staff writer for Common Dreams. Published 5-3-2017

Campaign finance reform advocates protest outside the Capitol building in Washington D.C., 2011. (Photo: takomabibelot/cc/flickr

While it is conventional wisdom that money influences politics, researchers released a report Tuesday aiming to answer the longstanding question of exactly how much political spending it takes to sway a Congressional vote.

Fifty Shades of Green (pdf), published by the Roosevelt Institute, analyzes “the role political finance has played in securing the privileged positions of both high finance and big telecom” by examining how lawmakers evolved in supporting efforts to weaken the Dodd-Frank financial reform bill and net neutrality. Continue reading

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In Latest Populist Betrayal, Trump Executive Order Unchains Wall Street Greed

Orders signed Friday are ‘nothing more than special favors for the same Wall Street banks that crashed our economy in 2008 and put millions of Americans out of work’

By Deirdre Fulton, staff writer for Common Dreams. Published 4-21-2017

Photo: YouTube

In yet another Wall Street giveaway, President Donald Trump on Friday afternoon took executive action to chip away at Dodd-Frank financial regulations and roll back rules aimed at reducing corporate tax avoidance.

Lisa Gilbert, vice president of legislative affairs for watchdog group Public Citizen, described the orders signed Friday at the Treasury Department as “nothing more than special favors for the same Wall Street banks that crashed our economy in 2008 and put millions of Americans out of work.” Continue reading

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‘Payout Time’: Exxon Seeks Waiver From U.S. Sanctions to Drill in Russia

“Exxon applied for waiver from sanctions on Russia. Among departments who must approve: State Department, run by company’s ex-CEO”

By Nika Knight, staff writer for Common Dreams. Published 4-19-2017

Photo: Fox News screenshot/Twitter

Exxon is applying for a waiver from the U.S. Treasury Department to bypass U.S. sanctions against Russia and resume offshore drilling in the Black Sea with the Russian oil company Rosneft, the Wall Street Journal reported Wednesday.

Among those charged with deciding to grant the permit is Secretary of State Rex Tillerson, the former CEO of Exxon who previously oversaw the company’s Russia operations. Continue reading

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