Opinion: With Consumer Financial Protection Bureau in Limbo, New Yorkers Need a New Financial Partner

The absence of federal oversight doesn t mean the city is powerless rather it should be a turning point With the cost of living continuing to rise New York requirements a homegrown partner whose model is rooted in their success not in taking advantage NYC Council William Alatriste With New York City s affordability dilemma growing more dire by the day the Consumer Financial Protection Bureau CFPB has been a lifeline the majority took for granted shielding consumers and businesses from fraud abuse and any unfair banking practices in a city where minimal have a cent left to spare Now with the agency on the line consumers and businesses alike face heightened financial vulnerability when they need protection the the bulk raising the critical question of who will step in to fill the federal watchdog s shoes and safeguard everyday Americans and their bank accounts from exploitation The impact may not be immediate in fact majority people might not fully understand the role of the CFPB However predatory practices often slip under the radar building up over time whether through misleading charges or hidden interest rates leading to irreparable damage before anyone realizes it Just earlier this year New York Attorney General Letitia James secured a billion judgment against capital lenders discovered to have been misleading small businesses about the nature of their cash advances for years charging interest rates as high as percent And in the Federal Commerce Commission communicated a nearly percent increase in fraud complaints since the prior year with losses surpassing billion largely driven by a rise in digital scams phishing attacks and unregulated digital lending and fintech The staggering figure underscores the critical need for safeguards as new threats continue to emerge In New York in particular where countless individuals live paycheck to paycheck the stakes are sky-high With consumer debt trending upwards due to credit and auto loans especially among younger borrowers New Yorkers can t afford to be complacent about their finances Finding trusted institutions that have their best interests at heart such as their local nonprofit credit union or a reliable personal advisor can offer reassurance These partners are driven by their customers long-term success and financial instruction not just quarterly profits In Municipal Credit Union hosted a financial literacy workshop series that reached over New Yorkers It was our way of building on the work we do with our members because like several other credit unions we see our members as co-owners in our organization and their success mirrors our own The alternative doesn t bode well not just for individual consumers but for New York s economic activity as a whole With credit card debt and home interest rates soaring leaving both consumers and businesses with little to no financial cushion the entire city is at danger of a important downturn The situation eerily mirrors before the CFPB opened its doors when the country entered a great recession due to predatory lending practices that left millions in foreclosure If New Yorkers don t leave their finances in the right hands we could find ourselves on the brink of a similar economic collapse stalling the region s rise and stability for years to come The landscape is evolving but so are New Yorkers The absence of federal oversight doesn t mean the city is powerless rather it should be a turning point With the cost of living continuing to rise New York requirements a homegrown partner whose model is rooted in their success not in taking advantage Traditional banks aren t going anywhere but New Yorkers can still take charge of their financial futures by choosing institutions that truly have their best interests at heart and consistently have their backs Kyle Markland is the CEO of Municipal Credit Union in New York City The post Opinion With Consumer Financial Protection Bureau in Limbo New Yorkers Need a New Financial Partner appeared first on City Limits