In 2009, I began working for several financial sites – mostly keeping up with their blogs and some white papers. It wasn’t too long before the 2009 CARD Act was signed into law and within a year after that, so was Dodd-Frank Act. I had to immerse myself in a crash course as to what these laws meant for consumers. Both were straight out of the Obama Administration.
It wouldn’t take long to realize the Consumer Financial Protection Bureau, which was founded under Dodd-Frank, was a different regulatory agency. Under the guidance of Director Richard Cordray, many Americans saw there were government agencies that really had no ulterior motives. Let me say this: most of those who drive the financial sector machine in this country are reliable, honest and truly work to do good each day. It’s the ones who don’t, the ones who can’t see past the dollar signs, who cause so many problems.
This week, less than a month into his term, President Trump has effectively unraveled every protection Americans had against everything from “too big to fail” banks (JP Morgan Chase, Citigroup, Wells Fargo and Bank of America), predatory college loans, insane interest rates on mortgages, and much more. By repealing Dodd-Frank, he’s also eliminating all of those financial protections the average American relies on. By the way, it’s important to note, this was the solution to ensure we would never see another mortgage meltdown that we saw in 2008 with the record number of foreclosures for millions of American families.
Here’s what you might not know:
February 5, when asked by a reporter what his intentions were, President Trump said “We expect to be cutting a lot out of Dodd-Frank.” He said this during a White House meeting with big business leaders and bank presidents, including JPMorgan Chase CEO Jamie Dimon. That’s a problem.
It’s interesting that the president would say something like this during a meeting with Dimon and his counterparts, mostly because of the headache CFPB has been for many of these CEOs – and most certainly JPMorgan’s leader. Here are just a few of the clashes JPMorgan Chase has had with CFPB.
SEP 19, 2013
JAN 22, 2015
JUL 08, 2015
CFPB isn’t reserved just for the banks. It has also focused on predatory lending on everything from payday loans to mortgages to aggressive collection actions:
CFPB Takes Action Against Two Law Firms for Misrepresenting Attorney Involvement to Collect on Medical Debts This one ordered medical debt collection law firms to refund $577,135 to consumers.
JAN 09, 2017
FEB 10, 2015
JUL 10, 2014
This agency has sought to protect consumers on all things financial, including student loans and the aggressive manner in which collection agencies collect debts. Imagine your parents filing for social security and being told they couldn’t until YOUR student loans from thirty years ago were paid back. That’s what this agency does – takes these kinds of disturbing companies down. Well, maybe not so much now.
The reality is Trump had an opportunity to fix what wasn’t working with Dodd-Frank. In all honestly, the accounting and different regulations are confusing. I’m sure there are analysts who can dissect the law far better than I could begin to understand. I’ll leave that to them. In terms of the every day family with typical challenges and not knowing who to trust in the financial sector, this is a real disappointment – even if no one realizes it right away. Mark my words – you’ll soon see the next time you apply for a college loan or a mortgage and feel like a loan officer is playing fast and loose on your unfamiliarity of contracts or if an unethical debt collector begins seeking you out on social media.