Debt Deception?

Combating auto fraud: Thoughts from an auto dealer

By Emma Schwartz and Jasmine Norwood

Jack Fitzgerald is an auto dealer but he's also a critic of his industry. We speak with him about some of the scams in the industry -- and what he thinks should change.

Debt Deception?

The floor of the North American International Auto Show is shown in Detroit on Jan. 11, 2011.  Paul Sancya/The Associated Press

Buyer beware

By David Heath

Financial reform was supposed to protect consumers from dishonest lending practices. But Congress refused to impose the new rules on the most distrusted business group in America: car dealers.

Debt Deception?

A lesson learned

By Jasmine Norwood

A conversation with Antuane Barnes who allegedly fell victim to an auto fraud scam.

Debt Deception?

Florida Rep. Vern Buchanan, shown here in a parade in his home district, is among a half-dozen lawmakers in the U.S. House of Representatives who now own an auto dealership or have in the recent past.  Photo from Rep. Buchanan's website

With 6 car dealers in Congress, industry revs up horsepower on Capitol Hill

By Kimberly Leonard

Car dealers are the ultimate grassroots organization with plenty of money for lobbying and political contributions, so few were surprised last summer when Congress approved a financial reform bill that specifically exempted auto dealers’ financing from regulation.

The newly sworn-in Congress has six members — all Republicans — who currently own auto dealerships or have in the recent past. That is double the number of car dealers who served in the last Congress and troubles consumer groups who worry that the industry already wields tremendous power over government policy.

“They posture as being the party of Main Street, but a lot of them have ties to dealership chains that are publicly traded on Wall Street,”said Rosemary Shahan, president of Consumers for Auto Reliability and Safety (CARS).

Incumbents include Vern Buchanan of Florida, John Campbell of California and Bill Shuster of Pennsylvania. Freshmen members are Mike Kelly of Pennsylvania, Scott Rigell of Virginia, and Jim Renacci from Ohio.

No members of the U.S. Senate are current or former car dealers.

The lawmakers say their business-minded approach to government is an asset in crafting policy to help small and medium-sized businesses grow and create jobs.

“Much of what we do, if not everything we do, affects the business community — and they are the job creators,” Shuster told the Center. "Being an auto dealer gives you experience you can bring right to Congress. You have a sales background that you can use to convince other members and convince the community. You also have the experience of customer service."

Debt Deception?

Maryland challenges online payday lender owned by tribal member

By Amy Biegelsen

Western Sky Financial’s website features a logo with three teepees and a toll-free number for customers to apply for an overnight loan. A notice at the bottom of the page says that the company is “owned wholly by an individual Tribal Member of the Cheyenne River Sioux Tribe.”

Disabled Borrowers

After a disabled borrower’s six-year ordeal, bureaucracy finally forgives student loan

By Sasha Chavkin

After six years battling to persuade the Education Department that she was too disabled to work again, the government finally has forgiven the student debt of disabled former police officer Tina Brooks. She was featured in a Feb. 13 story about the government’s broken program for forgiving the federal student loans of borrowers who become seriously disabled.

Disabled Borrowers

Education Department promises a fix to troubled disability review program

By Sasha Chavkin

After an investigation by ProPublica and the Center for Public Integrity last week found that the Department of Education’s bureaucratic program for forgiving the federal student loans of disabled borrowers has kept many disabled applicants in debt, the department said this week that it will overhaul the troubled program.

Disabled Borrowers

A pulmonary embolism left Scott Creighton, of Tampa, Fla., unable to continue working full time. His efforts to get his student-loan debt forgiven were turned away by a debt collector acting on behalf of the Education Department, despite a federal law entitling disabled borrowers to that step.  Brian Blanco

Federal red tape traps disabled borrowers with student loan debt

Borrowers who become severely disabled can get federal student loans forgiven, but the program for deciding whether they qualify is a dysfunctional, bureaucratic maze.

Debt Deception?

Fights over tribal payday lenders show challenges of financial reform

By Michael Hudson and David Heath

High-interest payday lenders are teaming up with Native Americans to shield their online businesses from lawsuits and consumer-lending regulations by claiming tribal-nation sovereignty.

Debt Deception?

President Obama appointed Elizabeth Warren a special adviser in September 2010 to help create the Consumer Financial Protection Bureau.  Susan Walsh/The Associated Press

Broad reach of new consumer financial agency may fall short in some areas

By David Heath

The Consumer Financial Protection Bureau that opens on July 21 faces Republican lawmakers who want to chip away at its power, companies that are already looking for ways to escape regulation, and loopholes inserted by Congress to protect influential businesses.

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