Times move fast in Washington – that is, when it comes to reporting new controversies – not progress. If you can remember back to last weekend – the hot topic was that Richard Cordray resigned as the Deputy Director of the Consumer Financial Protection Bureau (CFPB) and then a conflict ensued because he appointed his Assistant Director as being the person in charge and the President appointed White House Budget Director Mick Mulvaney as the new interim head.
At least for now, this issue is settled and Mulvaney is in charge – as ruled by the District Court in Washington DC. Thus, the agency whose goal is to protect consumers against the abuse of the financial industry is not headed by a person who believes the agency has abused its power by hampering the financial markets with overzealous enforcement and as a result, credit has been too tight for consumers. Sounds wise – doesn’t it? Well if you knew nothing about the consumer market in the US the last 5 years, you might give this statement some credence. Truth be told, there is ample credit in the marketplace – in fact, arguably too much – subprime auto lending has caused increased defaults in many markets and high interest credit card debt now exceeds the levels of 2008 before the Great Recession. Housing is doing well, and mortgage defaults are down. So, what has been hampered? If you remember what caused the financial collapse in 2008 – it was subprime lending – something that occurs when the financial markets run free as the wind. There is little point, however, in continuing to vent. The reality is that the CFPB – under Mulvaney and any Trump appointee will be a puppet of the financial industry and therefore there will no longer be a CFPB looking out for the consumer.
So, what do we do now? The answer is – we have to be our own Consumer Protectors! You and I – we have to look out for ourselves and not allow the financial industry to trap us into foolish practices that leave us saddled with debt at high interest. If you don’t have any credit card debt – it’s easy. Don’t allow yourself to make the mistake of carrying credit card balances. On your checking account, be sure to keep an adequate secret balance or have a savings account tied to it so that overdrafts don’t occur – and that way you don’t get stuck paying ridiculous fees. If you have debt – you need to get rid of it. You can do that by learning your options to make the credit card debt and hospital bills go away. We can’t be your CFPB, but we can be your “TAHB” – “Take a Hike Banks” and make the debt go away. If you want to learn how – my best suggestion is you attend our FREE SEMINAR coming up this Wednesday evening, “2018 Is Your Year to be Debt Free.“
Have a great weekend,