The good folks at the Center for Responsible Lending have a new and informative “Newsbrief” out today. It ought to be required reading (and viewing) for all of the wimpy members of Congress who’ve been caving in to the big banks. Check it out below:
Fight Financial Myths with Facts
TRUE OR FALSE?
- The average fee for overdrawing on a debit card transaction is double the amount of the overdraft.
The average shortfall is only $17, but the average overdraft fee is $34.
- In recent years, the financial services industry has spent more on lobbying than the health care and defense industries.
In fact, during the past decade, financial services companies, including real estate lobbyists, have spent $2.3 billion to influence Congress—more than the health care, energy, agribiz and defense industries combined.
- Recent reforms passed by Congress have reined in the credit card companies.
Not even close to true.
Congress passed new credit card legislation last summer, giving credit card companies a year to comply. Since then, credit card companies have increased fees or rates 8 times, with more hikes likely to come.
- Federal regulators have taken the lead in addressing abuses on home loans.
The truth is that multiple federal regulators with authority to act stood by and did almost nothing while the states took the lead in fighting harmful lending practices. If Congress prevents states from making stronger lending rules as necessary, they will essentially remove the front-line defense against abusive lending.
A lot of misinformation is flying around Washington these days. To arm you with the facts, we offer two new resources:
Updated Fact Sheets: The Cost of Bad Lending, State by State
Newly updated and designed fact sheets lay out the cost of bad lending state by state. What are the delinquency and foreclosure rates in your state? The cost of bank overdraft fees? Does your state have payday lending, and, if so, what does it cost your families? Also, check out the share of subprime mortgages made by national banks that were allowed to ignore state lending laws.
New Video: The Value of Reasonable Lending Practices? Priceless
Our three-minute “Priceless” video includes a series of “fun facts” about loose lending practices in recent years, and makes it plain and simple why Americans need sensible financial reform.