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July 8, 2009 -- Connecticut Governor M. Jodi Rell today announced she has signed a bill that regulates credit card marketing on campus to college students and restricts debt collection actions that can be taken by credit card companies against parents.

“Students are already burdened with education loans by the time they leave college. They risk taking on even more financial pressure when they give in to the lure of credit cards made available to them right on campus,” Governor Rell said. “This bill will set strict parameters for credit card companies on when, where and how they can market to students.”    » read more »

Income-based repayment available starting July 1

July 1, 2009 -- Starting July 1, a new repayment option is available that makes monthly payments more affordable for Americans with heavy federal student loan burdens. The new Income-Based Repayment (IBR) plan protects borrowers by linking payments to income and family size. A related new program offers additional benefits to those working in public service jobs.

"We know many graduates are concerned about their ability to repay student loans in the current economic environment," said U.S. Secretary of Education Arne Duncan. "This new plan addresses the issue head on by giving them the option of a monthly payment tied to their income."    » read more »

June 20, 2009 -- WASHINGTON – In his weekly address, President Barack Obama explained the necessity of his proposed Consumer Financial Protection Agency. It is clear that one of the major causes of the current economic crisis was a breakdown of oversight leading to widespread abuses in the financial world.

The Consumer Financial Protection Agency will have the sole job of looking out for the financial interests of ordinary Americans by banning unfair practices and enforcing the rules. This is the type of reform that will attack the causes of the current crisis and prevent further crises from taking place.

The audio and video will be available at 6:00am Saturday, June 20, 2009 at www.whitehouse.gov.

Prepared Remarks of President Barack Obama
Weekly Address    » read more »

"A Step Forward for Rhode Islanders Caught in Credit Traps"

June 19, 2009 -- Washington, D.C. - President Obama's new plan to toughen federal regulation of financial products like mortgages, credit cards, and retirement accounts will help level the playing field for Rhode Islanders like Ryan Kamphuis, who saw his interest rate skyrocket when he paid one bill late after having been hospitalized for weeks, U.S. Senator Sheldon Whitehouse (D-RI) said today.    » read more »

June 18, 2009 -- Citing a story in this morning’s Washington Post, Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, today slammed financial industry groups who have expressed opposition to the Obama Administration’s proposal to create an independent consumer financial protection agency.

Dodd is an outspoken advocate for the creation of such an agency, and reiterated his strong support for the idea at today’s Banking Committee hearing where Treasury Secretary Timothy Geithner testified about the Administration’s proposal to modernize the framework of American financial regulation and supervision.    » read more »

Stabilizing Student Loan Market, Protecting Borrowers and Safeguarding

June 17, 2009 -- U.S. Secretary of Education Arne Duncan today announced that four companies were awarded contracts to service a portion of the approximately $550 billion outstanding federal student loan portfolio held by the Department. The selected contractors will also service loans originated by and sold to the Department in the future.

The award of these contracts provides the Department with the capacity necessary to support anticipated increases in the number of loans owned by the Department and ensures borrowers receive the assistance they need to effectively manage their federal student loan obligations.    » read more »

Proposes that Fed Adopt "Opt-In" Approach to Overdraft Fees, Preventing Companies from Charging Consumers Without Their Permission

June 9, 2009 -- Senator Chris Dodd (D-CT), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, urged the Federal Reserve to act as soon as possible to protect consumers from abusive overdraft fees. In a letter to Fed Chairman Ben Bernanke, Dodd called on the Fed to finalize a proposed rule that would curb the use of excessive and unfair fees when consumers overdraw their bank accounts.

Dodd further pressed the Fed to implement an “opt-in” approach to overdraft fees, which would ensure that banks would be prohibited from charging consumers an overdraft fee without their consent.    » read more »

Rhode Island Senator Discusses Legislation to Crack Down on High Interest Rates

June 8, 2009 -- Providence, R.I. - On the heels of sweeping credit card reform legislation recently passed by Congress and signed into law by President Obama, U.S. Senator Sheldon Whitehouse (D-RI) met today with Rhode Islanders affected by unfair credit card practices at the John Hope Settlement House in Providence. Whitehouse heard from consumers and small business owners about the impact of high interest rates and other tricks and traps on their families and businesses.    » read more »

June 8, 2009 -- CHICAGO – Senator Richard Durbin and Congresswoman Melissa Bean today urged Illinois small business owners facing credit problems to consider the U.S. Small Business Administration’s lending programs, and announced the imminent start of a new loan program to help businesses pay down their debt.

After meeting with local small businesses and officials from the SBA, Bean (IL-08) and Durbin (IL) said the small business provisions contained in the American Recovery and Reinvestment Act have had a measurable benefit to small businesses working to retain and create jobs during the economic slump.    » read more »

Stemming Foreclosures and Keeping Families in Their Homes

May 29, 2009 -- Foreclosures continue to drag down our economy, and Michigan has one of the worst foreclosure situations in the nation. To address this issue, Congress passed and President Obama recently signed into law the Helping Families Save Their Homes Act of 2009.

The act expands and improves the Help for Homeowners program, the Federal Housing Administration’s tools to protect homeowners, and various counseling and foreclosure prevention programs to provide access and assistance to more people. It will bring much-needed help to many homeowners who are trying desperately to save their homes.    » read more »

May 29, 2009 -- WASHINGTON, D.C. - U.S. Senator Kay R. Hagan (D-NC) released the following statement today in response to the US Small Business Administration's announcement that it plans to make new lines of floor plan credit available to auto dealers beginning July 1. In April, Hagan joined 22 Senators from both sides of the aisle in sending a letter to President Obama urging him to expand the availability of credit for America's automobile dealers.    » read more »

San Francisco — May 29, 2009 -- Sstatement from Wells Fargo & Company (NYSE: WFC) regarding Emerisque’s offer for Hartmarx Corp.:

The group of banks led by Wells Fargo as agent, which has provided credit to Hartmarx Corp., said today it opposes Emerisque’s offer to acquire Hartmarx, which has been in Chapter 11 since January 2009 and has been unable to repay more than $114 million that it owes the bank group.    » read more »

Guidelines for use with new federal Neighborhood Stabilization Program funds

May 27, 2009 -- Calabasas, Calif. - As part of its commitment to stabilize communities hardest hit by foreclosures, Bank of America Home Loans has announced new streamlined capabilities for municipalities to purchase properties from its real estate-owned (REO) portfolio.

The new guidelines are exclusively for local and state government departments receiving U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP) grants, to more easily and quickly acquire foreclosed properties for resale to home buyers or to address other community development needs.    » read more »

President Obama signs Credit Card Accountability, Responsibility, and Disclosure Act

May 22, 2009 --
WASHINGTON – Today, President Obama signs the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees.    » read more »

Washington, DC - 05/20/2009 - A full 82 percent of credit cards allow penalty interest rate hikes that could last indefinitely, giving responsible cardholders no right to return to the originally agreed upon interest rate, according to a new issue brief from The Pew Charitable Trusts’ Safe Credit Cards Project. A unique Senate proposal known as a “cure period” will help curb penalty interest charges that add billions to Americans’ credit card debt. Pew’s analysis also found:

* Americans are on track to pay credit card penalty interest charges of more than $7 billion annually.
* The median allowable penalty rate was 28 percent (double the average non-penalty rate), adding $500 in penalties per year to a typical cardholder’s account.    » read more »