Issue Position: Financial Services & Consumer Protection

Issue Position

Issue Position: Financial Services & Consumer Protection

Financial Services & Consumer Protection

The economic crisis that began devastating families and financial markets in 2007 and 2008 shows that personal responsibility in finances must be matched by responsibility and accountability on Wall Street. Our nation's financial system must always be a free market system, and the growth of the financial services industry in New Jersey along the Hudson River is a testament to the benefits that strong financial institutions can bring to our state. However, we have to ensure that effective accountability and consumer protections exist to prevent excessive risks that can wipe out family savings.

As a member of the Senate Banking, Housing and Urban Affairs Committee, I have always worked to ensure our financial system is both strong and fair for consumers. I have fought to end unfair, deceptive and fraudulent practices, including playing a leadership role on credit card reform legislation that President Obama signed into law in 2009. I also strongly supported the enactment of legislation to crack down on fraudulent mortgage practices.

The obvious failure of our financial regulators to sound the alarm about a looming foreclosure crisis or to stop the Madoff investment scheme shows the need for reform, and I have played an active role in that effort. I am the sponsor of legislation to hold Wall Street and its regulators accountable for their mistakes. We must monitor risks and promote reasonable regulation of Wall Street to protect consumers and prevent the next financial crisis.

Education is a key tool to help consumers protect themselves from predatory firms, and I have championed legislation to increase financial literacy. I will continue fighting to protect New Jersey families and ensure that consumers have the resources and information they need to be vigilant and alert in protecting themselves, whether it be from predatory lenders, identity theft, deceptive credit card practices, faulty products or unsafe food.

Highlights

* Credit card reform -- Author of major credit card reform legislation and lead collaborator on landmark 2009 reform enacted into law. Credit card reforms protect consumers from unilateral, unexpected interest rate increases; end the practice of unreasonable fees and penalties; and protect consumers under the age of 21, among other measures.

* Financial literacy -- Authored financial literacy law, enacted as part of the landmark Housing and Economic Recovery Act of 2008. The provision fosters better financial education among prospective homeowners and help identify the most successful methods for delivering counseling services. The amendment allows states to use their administrative expenses to improve their financial education and housing counseling services and authorizes pilot projects to help determine the most effective methods for providing housing counseling and financial education.

* Consumer product safety -- Author of Restoring Truth in Regulator Travel Act to prohibit officials at federal regulatory agencies from accepting travel paid for by the industries they are charged with regulating. Co-authored an amendment to Consumer Product Safety Commission reform legislation in 2008 that prohibits travel by CPSC officials paid for by the industries they regulate. This amendment was enacted into law.

* Foreign investment in the U.S. -- Author of provision enacted into law in 2007 that requires the Committee on Foreign Investments in the United States to notify U.S. Senators when a foreign investment in their state is under investigation. This issue gained attention in 2006 when a company owned by Dubai purchased commerical operations at major U.S. ports without red flags being raised in the federal government. Senator Menendez was a leading critic of that deal and helped lead the charge to reform the CFIUS review process.

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