Sen. Elizabeth Warren has firmly stated she will not run for President in the 2016 general election. However, she is still vying to keep her U.S. Senate seat, and she is continuing her staunch advocacy for consumer protections.
Among these efforts is to preserve the agency she helped start – the Consumer Financial Protection Bureau, which numerous Republican party candidates have vowed to dismantle. She has put forth a petition, asking the public to help protect the agency from attempts to weaken or even kill it.
In her call to action, she notes government agencies offer protections of all kinds. They ensure toys aren’t made with lead paint, that medicine isn’t tainted with poisons and that cars aren’t manufactured without functioning brakes. There is even an agency that protects against exploding toasters.
And yet, when the economy crashed in 2008, there was no agency with the task of protecting the public from toxic mortgages. These were mortgages that were highly overvalued and pushed on consumers who then had to deal with the fallout – which far too often meant foreclosure and financial ruin.
South Florida still has one of the highest rates of housing foreclosure, and Miami foreclosure defense attorneys continue to defend homeowners against unfair practices of banks.
Since the economic crisis, the government responded with the establishment of the CFPB through the Dodd-Frank Wall Street reform law. Since it was formed in July 2011, the agency has returned $10 billion to people who were cheated on mortgages, credit cards and other financial products, such as bank overdraft fees. In some cases, financing units were charging millions of dollars in higher interest to minority borrowers, and the agency has helped to address that.
Yet the GOP is still fighting hard to axe the agency.
Recently, Sen. Ted Cruz (R-Texas), a candidate for the presidency, called for abolishing the watchdog agency. He and Texas Rep. John Ratcliff (R) have introduced a bill that would eliminate the agency, saying it “invites regulatory excess and abuse” and saying it does little to protect consumers and stunts economic growth.
But the banks aren’t hurting, and consumers are now hurting a little less because of the CFPB’s actions.
Of course, Republicans have fought the agency from the start, saying it wields too much power and is unnecessary. Now, 46 lawmakers have signed on in support of the bill.
But Warren has vowed to put up a fight in her new Senate term. She noted before the CFPB reforms and regulations, anyone could get a “free” credit card without being informed of the enormous risk they were taking. The game, Warren said, was “rigged” from the start, with banks making huge profits off the most vulnerable populations.
The fall out over the mortgage industry even further underscored the need for more regulation. And in fact, Warren is calling for an expansion to the Dodd-Frank Act to bolster consumer protections.
If you’re battling debt collection in Miami or the surrounding areas contact Jacobs|Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991. Also, don’t miss Miami Foreclosure Attorney Bruce Jacobs on 880AM/the Biz, every Tuesday at 6 p.m. on “Debt Warriors with Bruce Jacobs and Court Keeley,” discussing foreclosure topics that matter to YOU.
Tell the 2016 Presidential candidates: Pledge to stop the revolving door between Washington and Wall Street., 2015, Elizabeth Warren for Senate
Protect the Consumer Financial Protection Bureau, 2015, Elizabeth Warren for Senate
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Study: Banker Ethics Sharply Decline, June 15, 2015, Miami Consumer Rights Lawyer Blog