Conservatives learning why we need CFPB...the hard way

[UNCjigga]

Conservatives have railed against the very idea of a Consumer Financial Protection Bureau (and it’s implementation) for over a decade. This is fact. They’ve used l sorts of arguments—structural arguments against how it’s uniquely insulated from the President (now settled in Seila Law decision) to arguments about the very nature of regulating banks. I could go on and on but you can just read these links:

Consumer protection: Why do Republicans hate the CFPB so much?

The Dodd-Frank financial reform bill turned 5 years old this week, and conservative Republicans, who didn't like the measure in the first place, predictably have been withering in their scorn.

www.latimes.com

Why Wall Street and Republicans hate the CFPB

There's a long, tense history between Republicans and the Consumer Financial Protection Agency.

money.cnn.com

Not surprising that the grifters who proclaim to be against Big Government taking your money will take up arms when a new agency takes $12 billion from the biggest grifters and gives it back to the people.

GOP voters have echoed what Republicans and talking heads on Fox have told them. CFPB bad! Elizabeth Warren socialist! Dismantle now!

But...then this happens:

Wells Fargo paused mortgage payments for some customers without asking

Lawyers say they've found cases in 11 states in which Wells Fargo has wrongly claimed borrowers asked to pause mortgage payments during the COVID-19 pandemic.

www.nbcnews.com

On April 29, without Harlow's knowledge or permission, Wells Fargo told the bankruptcy court overseeing his payment plan that he had asked the bank to pause his mortgage payments because he had been hurt by COVID-19. Harlow, 48, of Buchanan, Virginia, made no such request and had continued to forward the full amount owed on his mortgage to Wells Fargo, court documents show.
...
In mid-May, Harlow's attorneys learned of Wells Fargo's move and immediately objected to it in bankruptcy court. The bank's request put Harlow's court-approved bankruptcy repayment plan at risk.

"I was just astounded that this was going on behind my back," Harlow said. "I hope we can get this straight, because I do not want to lose my house."

Harlow's attorneys say he isn't alone. They have identified more than a dozen cases in Virginia, as well as cases in Alabama, Arizona, Florida, Kansas, Louisiana, Michigan, Missouri, New Jersey, North Carolina and Texas, where Wells Fargo has wrongly claimed that borrowers asked to pause their mortgage payments in forbearance plans. The lawyers have also found that the bank put through secondary requests for forbearance on behalf of homeowners who had asked to participate in the program initially but who no longer wanted to.
...
Erroneous forbearance filings in Chapter 13 bankruptcy cases can put borrowers' homes at risk of foreclosure and represent a fraud against the bankruptcy court, said Thad Bartholow, a lawyer at Kellett & Bartholow who has sued the bank on behalf of wronged borrowers. The erroneous filings can also hurt consumers' credit reports, which are relied upon by other lenders and prospective employers, and generate unneeded legal costs.
—
Now you might argue that these homeowners can just lawyer up and sue the banks, establish a class action suit, and the legal system will take care of it. But any fines and legal fees would just be a slap on the wrist for a bank, yet a significant expense for the average homeowner. CFPB goes beyond in actually pursuing jail time for bank executives. But after Trump and Mulvaney made the agency toothless, are we surprised that Wells Fargo is still pulling shit?

 

[Moonbeam]

As long as money is speech and corporations are people democracy will remain dead. The problems in America will take a revolution to fix, a revolution in conscious awareness of what is really happening, at least in my opinion.

 

[nakedfrog]

I don't need to read any articles to know why Republicans hate the CFPB, it's a pretty simple flowchart.
Glad my business with Wells Fargo is coming to an end.

 

[Grey_Beard]

We will need these CFPB protections more than ever. With the pending job losses, as the virus continues it toll on this country’s economy, foreclosures, bankruptcies and other kinds of issues with in the rental, real estate and mortgage markets will be a major issue moving forward. Rates will continue to be low until the employment number get back closer to full employment. This could be a decade until then. These next few months will tell us how bad things will get and how long it will rage to recover.

 

[fskimospy]

Add the unitary executive theory to the list of dangerous constitutional law arguments that need to be put on the scrap heap.

If all federal agencies operate solely at and by the president’s will then congress has no meaningful way to control the operation of the federal government. It’s a monarchy.

As for why Republicans hate the CFPB it’s twofold. One, black man bad. Two, it prevents wealthy corporations from preying on people.

 

[dawp]

wells fargo got itself in trouble before doing something similar.

 

[Moonbeam]

wells fargo got itself in trouble before doing something similar.

Trump is a clarion call for all rats to roudly pmanifest their lack of character. America is psychopath heaven for corporate executives. Set the max salary at 50 to one and watch caring leadership emerge. Unbridled capitalism is an invitation for rape and pillaging for those who think only of self.

 

[hal2kilo]

Conservatives have railed against the very idea of a Consumer Financial Protection Bureau (and it’s implementation) for over a decade. This is fact. They’ve used l sorts of arguments—structural arguments against how it’s uniquely insulated from the President (now settled in Seila Law decision) to arguments about the very nature of regulating banks. I could go on and on but you can just read these links:

Consumer protection: Why do Republicans hate the CFPB so much?

The Dodd-Frank financial reform bill turned 5 years old this week, and conservative Republicans, who didn't like the measure in the first place, predictably have been withering in their scorn.

www.latimes.com

Why Wall Street and Republicans hate the CFPB

There's a long, tense history between Republicans and the Consumer Financial Protection Agency.

money.cnn.com

Not surprising that the grifters who proclaim to be against Big Government taking your money will take up arms when a new agency takes $12 billion from the biggest grifters and gives it back to the people.

GOP voters have echoed what Republicans and talking heads on Fox have told them. CFPB bad! Elizabeth Warren socialist! Dismantle now!

But...then this happens:

Wells Fargo paused mortgage payments for some customers without asking

Lawyers say they've found cases in 11 states in which Wells Fargo has wrongly claimed borrowers asked to pause mortgage payments during the COVID-19 pandemic.

www.nbcnews.com

On April 29, without Harlow's knowledge or permission, Wells Fargo told the bankruptcy court overseeing his payment plan that he had asked the bank to pause his mortgage payments because he had been hurt by COVID-19. Harlow, 48, of Buchanan, Virginia, made no such request and had continued to forward the full amount owed on his mortgage to Wells Fargo, court documents show.
...
In mid-May, Harlow's attorneys learned of Wells Fargo's move and immediately objected to it in bankruptcy court. The bank's request put Harlow's court-approved bankruptcy repayment plan at risk.

"I was just astounded that this was going on behind my back," Harlow said. "I hope we can get this straight, because I do not want to lose my house."

Harlow's attorneys say he isn't alone. They have identified more than a dozen cases in Virginia, as well as cases in Alabama, Arizona, Florida, Kansas, Louisiana, Michigan, Missouri, New Jersey, North Carolina and Texas, where Wells Fargo has wrongly claimed that borrowers asked to pause their mortgage payments in forbearance plans. The lawyers have also found that the bank put through secondary requests for forbearance on behalf of homeowners who had asked to participate in the program initially but who no longer wanted to.
...
Erroneous forbearance filings in Chapter 13 bankruptcy cases can put borrowers' homes at risk of foreclosure and represent a fraud against the bankruptcy court, said Thad Bartholow, a lawyer at Kellett & Bartholow who has sued the bank on behalf of wronged borrowers. The erroneous filings can also hurt consumers' credit reports, which are relied upon by other lenders and prospective employers, and generate unneeded legal costs.
—
Now you might argue that these homeowners can just lawyer up and sue the banks, establish a class action suit, and the legal system will take care of it. But any fines and legal fees would just be a slap on the wrist for a bank, yet a significant expense for the average homeowner. CFPB goes beyond in actually pursuing jail time for bank executives. But after Trump and Mulvaney made the agency toothless, are we surprised that Wells Fargo is still pulling shit?

Well Fargo should have been closed down years ago, when they were opening credit card accounts right and left without the knowledge of the person. I guess as long as you are a corporation you can get away with just about anything as long as you come up with some "mitigation plan".

 

[tweaker2]

I guess the implied and/or direct threats of pulling donations from folks who are in heated election campaigns and giving it to the competition have a chilling effect on candidates, especially so for the Repubs running for office given how they rely on the very wealthy and big business donations so much more than the Dems.

 

[UNCjigga]

Well Fargo should have been closed down years ago, when they were opening credit card accounts right and left without the knowledge of the person. I guess as long as you are a corporation you can get away with just about anything as long as you come up with some "mitigation plan".

I was actually mildly surprised when Trump’s hollowed CFPB imposed a $1 billion fine on Wells—but they haven’t really been enforcing the consent order and I don’t expect them to start now.