Aaron, Oakland's ordinance was taken down because the California
Supreme Court invalidated it, and all other local anti-predatory
lending ordinances in the state.
See http://www.newrules.org/preempt/#anchor8
Michael Thompson, we have lots of law that protect individuals from
themselves (e.g. drug possession and use, seat belts). We choose to
enact such laws when it is helpful to the community for individuals to
make one choice over another (to do drugs or not, to use a seat belt or
not). We also have laws to minimize the risk that opportunists will
take advantage of people whose situations make them vulnerable (minors,
the elderly). Do you object to all these laws, or just the ones that
interfere with corporations making money?
Michael also asks if there is evidence of Wells Fargo engaging in
predatory lending. This is from a shareholder resolution put forth by
Responsible Wealth in April 2005:
� In 2003, California regulators filed suit against Wells Fargo
Financial California seeking approximately $38 million in penalties for
failing to meet state disclosure standards when mailing draft loans
(also known as "live checks") to prospective borrowers. After Wells
Fargo represented that it had corrected the problem, regulators alleged
that they found evidence of continued violation and brought "willful
disregard" charges in the matter, which is still pending.
� In April 2004, the Maryland Commission on Human Relations subpoenaed
Wells Fargo documents in an investigation of predatory lending and fair
lending complaints. In June the Louisiana Attorney General issued a
civil investigative demand following numerous consumer complaints about
Wells Fargo's lending practices
� In June 2004, a class action lawsuit was filed against Wells Fargo in
Illinois alleging that the company charged fees on loans of up to 11%,
well above the 3% state limit on fees for high rate loans. The same
month a representative action was filed in California alleging broad
unfair and deceptive lending practices.
� In September 2004, the 2nd U.S. Circuit Court of Appeals in New York,
found Wells Fargo in violation of federal law prohibiting mark-ups on
fees for such things as credit reports, title work and flood plain
certifications. �
Wells Fargo lags other major industry players in developing policies
protecting borrowers and shareholders from predatory lending abuses.
For example, unlike Citigroup and others, Wells Fargo has no clear and
public commitment that customers will be charged similar rates no
matter which part of the company they do business with. Wells Fargo has
not established policies requiring that �mortgage refinancings provide
net benefits to borrowers, as is the current industry best practice.
[end quote]
A greater problem than predatory lending by national banks themselves
is "charter leasing" by national banks to store front payday lenders.
Nathan Hunstad taps into the important idea here about lending and
community good. These laws might not be necessary except that national
banks are far removed from the consequences of their policies.
Individual responsibility is good, yes, but businesses have a
responsibility to the community. National banks have no community.
We've written about this at the Institute for Local Self-Reliance
(proud members of the "cult of localism"),
see http://www.newrules.org/drdave/17-banking.html,
and Rogue Agencies Gut State Banking Laws at
http://www.newrules.org/journal/nrfall01.htm
Becca Vargo Daggett
SewardREMINDERS:
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