Why we Need a CFPA in Five Words; The Credit Market is Broken

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I hear story after story from homeowners who feel that their pleas for help fall on deaf ears. Many have filed complaints with their State Attorney General's office, various federal and state agencies, and of course their mortgage servicing company itself--but not one of the people writing to me reports receiving any satisfaction or relief. 

Consumers continue to report that they are overwhelmed and bewildered when learning there is nobody willing to help them right a corporate wrong.

Do any of these all-too-common complaints sound familiar?

• I was never late on payments, yet I discovered they tacked on late fees.

• I had my own insurance yet they charged me for force placed insurance.

• They told me to skip payments in order to qualify for a loan modification, but instead of help I got a notice of foreclosure.

• They have ruined my credit score by lowering my available credit and jacking up my interest rates.

• I made my payments on time but they returned the check to me claiming I didn't pay in full--due to unknown "fees."

• I always thought there was an agency to to turn to and find help.  I guess I was wrong.

• They didn't pay my taxes on time and now I am forced to pay a higher rate.

• They've destroyed my credit. Now I am stuck and can't refinance.

Another common complaint surrounds the "attitude as opposed to gratitude" borrowers get when requesting loan modifications and/or partial debt forgiveness or reduced interest rates to get back on their feet.

Even though the banks themselves turned to the government and taxpayers for billions in bailout funds, they are unwilling to return that favor by helping their customers (or our economy) get back on their feet after suffering a job loss or major illness. This doesn't sit well with consumers who often pose another recurring question; "Why won't these banks forgive some fines and penalties, lower the interest rates and help us rebuild -as we did them?"

Why we need a CFPA in Five words; The credit market is broken.

The CFPA would be a single federal agency whose mission would be to protect consumers from dangerous financial products and practices.  This would include credit cards, mortgages, debit cards, all consumer loans, payment systems, bank accounts, and more.

As we begin a new year and a new decade, AFFIL offers an overview of what has been accomplished and the challenges that we'll face in 2010 and beyond. More

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A memoir exposing the steep price consumers pay when facing mortgage servicing errors, inaccurate credit reporting, illegal debt collection practices, identity theft and weak consumer protection laws. THE BOOK » DENISE'S STORY »