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It is widely known that a primary cause of the current financial crisis was abusive lending, particularly the widespread practice of selling subprime mortgages to people who couldn’t afford them. While the financial crisis is global in scope, Ohio is one of its flashpoints. The solution is to enact a strong federal Consumer Financial Protection Agency that reinstates federal law as a floor not a ceiling of protection and has as its primary responsibility the enforcement of consumer protection laws. |
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Credit card lending is enormously profitable. According to annual Federal Reserve Board of Governors’ (FRB) Reports to Congress, it is the most profitable form of banking. But the credit card industry is saturated. The average adult had nearly five credit cards in 2006 and the average household received 5.7 credit card solicitations monthly in 2004, according to the 2007 FRB report.1 Banks seeking even greater profits from credit cards have several options: |
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