Background:
Members of the House of Representatives will start floor debate on H.R. 4173 The Wall Street Reform and Consumer Financial Protection Agency Act this THURSDAY or FRIDAY December 10-11th!

The Consumer Financial Protection Agency (CFPA) will do the following:
•    Ensure that credit and payment products do not have predatory or deceptive features that can harm consumers or lock them into unaffordable loans, such as pre-payment penalties, unjustified fees and hair-trigger interest rate increases.
•    Prohibit or limit dangerous or unsuitable financial products, product features or practices.
•    Conduct ongoing research and investigation into credit industry products and services.
•    Provide consumers with high-quality information about how to avoid abusive lending or credit problems.
•    Rein in deceptive marketing practices and require improved disclosure of terms.
•    Prohibit financial institutions from shopping around at the state or federal level for a regulator that will keep oversight to a minimum.
•    Set high federal minimum standards for credit products, so that only competition to increase consumer protections would exist.
MCRC and other consumer groups are also urging that the bill be strengthened by:
•    Giving the CFPA oversight of auto dealers when they sell or advertise car loans.
•    Ensure that CFPA rules are a “floor” for consumer protection so that Maryland and other states can enact and enforce stronger local protections for its citizens.
•    Permit bankruptcy judges to lower the amount of principal that financially distressed home-owners owe on the mortgage for their principal residence.

Call your member of Congress and urge support of a strong pro-consumer and pro-investor bill.

•    Frank Kratovil, 1st District
Phone: 202-225-5311

•    Dutch Ruppersberger, 2nd District
Phone: 202-225-3061

•    John Sarbanes, 3rd District
Phone: 202-225-4016

•    Donna Edwards, 4th District
Phone: 202-225-8699

•    Steny Hoyer, 5th District
Phone: 202-225-4131

•    Roscoe Bartlett, Maryland, 6th District
Phone: 202-225-2721

•    Elijah Cummings, 7th District
Phone: 202-225-4741

•    Chris Van Hollen, 8th District
Phone: 202-225-5341

Sample Call:
When you call, you will get the front desk staff for your Representative. Ask to speak to the staff member handling consumer protection issues. If they are not available, speak to the staff member at the front desk.

Sample Script:

Hello, I am a constituent in Representative ______ district. I am calling to urge Representative ____________ to support H.R. 4173 The Wall Street Reform and Consumer Financial Protection Agency Act.
I also urge Representative ___________ to support the following amendments to the bill:
•    Give the CFPA oversight over car dealers and car loans;
•    Ensure that CFPA is the “floor” for consumer protection so that Maryland can enact and enforce strong state laws to protect citizens.
•    Permit bankruptcy judges to lower the amount of principal that distressed homeowners owe on the mortgage for their primary residence.

As Marylanders continue to lose jobs and homes in this recession, it is vital that we establish a new agency to protect consumers and promote fairness in the marketplace.

Will Representative ____________ support H.R. 4173?
If yes: Thank you so much. I appreciate it and will be watching the vote.
If no: Why not? Is Representative ________receiving many calls on this issue? Which way are the calls going? I urge the Representative to change her/his mind and will be watching the vote.

Will Representative ___________ support the amendments to strengthen the bill?
If yes: Thank you so much. I appreciate it and will be watching the vote.
If no: Why not? Does the Representative have concerns over certain reforms? Does s/he need more information about the amendments?
Thank you and I do urge Representative ____________ to support these amendments. I will be watching the vote.

Please email Marceline at marceline@mdconsumers.org after you have made your call and let us know how it went.

Experts will Help Constituents Prevent Foreclosure, Detect Scams, Investigate Refinancing Options, and Get a Home Buyer Tax Credit

Congressman C.A. Dutch Ruppersberger (D-MD) will host a Congressional Forum on “Opportunities for Home Ownership.” Maryland has the 9th highest foreclosure rate in the country, according to Realty Trac Inc., a California-based research firm. The homes of more than 6,600 families in Maryland went into foreclosure in October 2009 alone. Thousands more Marylanders face mortgage scams. Many others are considering refinancing or purchasing a new home.

Congressman Ruppersberger will be joined by housing experts from the federal, state, and local government to help constituents:
• Prevent foreclosure
• Detect scams in mortgage lending
• Investigate refinancing options
• Get a home buyers tax credit

“Even in these tough economic times, the American dream of buying a home may be in reach. There is also help available for those facing foreclosure, struggling to keep that dream alive. Please join me for this important forum, where you can gather valuable information about opportunities for home ownership,” said Congressman C.A. Dutch Ruppersberger (D-MD).

WHO: Congressman C.A. Dutch Ruppersberger (D-MD)
Mr. James Kelly, the U.S. Department of Housing and Urban Development
Mr. Rob Strupp, the Community Law Center
Ms. Yvette Foreman, the Baltimore County Community Conservation Office

WHAT: Ruppersberger to Host Home Ownership Forum

WHEN: 7:00 p.m., Tuesday, December 8, 2009

WHERE: Dundalk High School
1901 Delvale Avenue
Baltimore, Maryland 21222

Beulah Addison was a resident and patient at a nursing home run by FutureCare Lochearn (“FCL”). Among other abuses, FCL brought into her room an individual pushing a foreclosure rescue scam: she thought she was agreeing to “save” her house from foreclosure, but, in reality, the transaction would have resulted in her paying the “rescue company” enormous fees and selling her house for more than $75,000 below its value, leaving her with nothing at all. When this scam was challenged in litigation, FCL attempted to force Ms. Addison into arbitration.

The trial court denied FCL’s motion to compel arbitration, holding that her claims did not fit within the scope of the language of the arbitration clause. FCL appealed. Public Justice and our co-counsel argued, among other things, that the trial court’s ruling was not a final, appealable order. The Maryland Court of Appeals agreed, and dismissed FCL’s appeal. As a result, Ms. Addison’s case can now proceed to trial and hold FCL accountable for its wrongdoing.

This is an important victory for Maryland consumers. When trial courts reject companies’ efforts to force cases into arbitration, plaintiffs can proceed immediately to trial. They will not have to endure lengthy appeals. Congratulations and thanks to Public Justice’s Paul Bland (who argued the case in the Maryland Court of Appeals), Claire Prestel and Melanie Hirsch (who were the principal authors of the briefs), and our co-counsel, [MCRC board member] Phillip Robinson of Civil Justice in Baltimore and Julianne Chappell of Washington, D.C. Congratulations and thanks to you, too, for helping make this victory possible. With your help, our Access to Justice Campaign and Mandatory Arbitration Abuse Prevention Project will keep fighting for access to justice for all.

Arthur Bryant

Executive Director

Public Justice and the Public Justice Foundation

“The actions regarding this dealership demonstrate teamwork between state and local regulatory agencies,” said OCP Director Eric Friedman. “However, we remain concerned there are other consumers out there who have not received titles or registrations to vehicles they purchased from Rockville Auto Sales. With the dealership’s cooperation, we are working with MVA to assist these consumers.” — read more

Among other criteria, cardholders are seeing limits reduced because of where they live, where they shop and who holds their mortgage. — read more