Bankruptcy Expert Elizabeth Warren Enmeshed in Political Tug of War
Posted by | Posted in Credit Report | Posted on 11-08-2010
There is a federal agency to protect consumers of rancid spinach and juicing baseball players. There is a federal agency to protect consumers from streams filled with three-headed fish. As of July 21, there is a long-awaited federal bureau to warn the average consumer of things like bad mortgages and credit scams. It is the adversary on the horizon to payday loan companies, shady mortgage lenders, and internet scams such as the “free” subscription-only credit report websites that were recently flagged by the FTC. President Obama signed a bill passed by Congress to officially set up the Consumer Financial Protection Bureau.
The bureau’s creator, bankruptcy expert Elizabeth Warren, may or may not have a future as the leader of her own domain. Why? Her adversaries have her pegged as just another right-leaning Harvard law professor, and therefore a built-in Obama wingwoman. Even her staunch Democratic supporters second-guess her appeal to “reach across the aisle”, especially as President Obama’s approval ratings dip. Some of Warren’s biggest skeptics come from inside the White House, who believe she is too outspoken and presents too much of a Joe Biden-esque wild card when it comes to delicate negotiation with banks.
The U.S. Chamber of Commerce is not a fan of the bureau, having funded a million dollar campaign declaring it an enemy of the banking industry. Incidentally, the U.S. Chamber of Commerce advocates to consumers that bankruptcy should be considered the “absolute last resort”, but more for the sake of the banks who have to cover up the canceled debt than for the sake of the average consumer. Other critics simply wonder just how much can the academic author of over a hundred scholarly articles really democratize, or see eye to eye with the average consumer. The bankruptcy expert’s biggest supporters, however, feel that as the first Harvard professor to ever win two teaching awards, Elizabeth Warren is the perfect candidate to demand and enforce more consumer-friendly transparency.
Especially with an expert on bankruptcy laws at the helm, the Consumer Protection Financial Bureau could be a way to extend the consumer-friendly principles of 2005’s Bankruptcy Abuse Prevention and Consumer Protection Act. Any potential change to bankruptcy as we know it and new banking regulations would probably not take place for over a year while the bureau is set up and staff is appointed.
While the government thinks up new ways to aid the struggling consumer, bankruptcy is still the most reliable escape out of insurmountable debt. It is the most effective way to save a home and overcome the credit trap. For a free consultation, contact the office of Legal Helpers toll-free at 1-800-260-1402. We will guide you about taking the first step towards serious debt relief.
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