Comments of National Consumer Law Center (on behalf of its Low Income Clients), Consumers For Auto Reliability And Safety, National Association of Consumer Advocates, and Center for Responsible Lending on Federal Trade Commission Magnuson-Moss Warranty Act Review, 16 CFR Part 700, P11406, 76 Fed. Reg. 52596 (Aug. 23, 2011) Submitted Oct. 24, 2011.
H.R. 1121 would threaten the ability of the newly-enacted Consumer Financial Protection Bureau (CFPB) to protect consumers from predatory and abusive financial practices. The bill, which would fundamentally change the structure of the CFPB from a single, accountable director to a weak five-person commission, would derail the consumer protections enacted under the Dodd-Frank act (P.L. 111-203).
We urge Congress to reject this bill and keep the single director in place.
Daily, consumers throughout America receive collection letters claiming that s/he owes thousands of dollars on a delinquent credit card debt. Time and again, I and my fellow consumer advocates hear from clients who tell stories that mimic the facts described by the Court in Discover Bank v. Owens. In that case, an Ohio court found that Ms. Owens, an elderly woman who depended on a monthly Social Security Disability (“SSD”) check, had more than repaid the principal balance plus interest that she had borrowed on a Discover credit card.
We the undersigned consumer, civil rights and labor organizations write to commend you for introducing the Credit Card Reform Act. As the U.S. economy balances precariously on the brink of recession, this important legislation will protect financially vulnerable families from many harmful practices that credit card companies use to unjustifiably increase fees and interest rates.