Commissioner Hampton Welcomes NASAA During 2007 Public Policy Conference
On behalf of the host city and Mayor Adrian M. Fenty, Commissioner Thomas E. Hampton welcomed attendees to Washington, DC, for the 22nd annual North American Securities Administrators Association (NASAA) Spring Conference’s 2007 Public Policy Forum. Commissioner Hampton acknowledged Councilmember Mary Cheh, chair of the Committee on Public Service and Consumer Affairs, which oversees DISB. He stated that the Fenty administration places high priority on consumer protection, particularly for low-income individuals, families and seniors. He acknowledged that financial literacy is critical to District residents’ ability to participate in the great economic development opportunities the District has to offer while applauding NASAA’s leadership in promoting financial literacy. He also committed to having a first-rate investor protection program, and recognized that DISB must be at the forefront of modern regulation and work closely and effectively with regulators in other states and other nations to protect the public.
DISB Collaborates With the Washington, DC, Economic Partnership
Commissioner Hampton and staff met with executives of the Washington, DC, Economic Partnership (WDCEP) to explore strategies for leveraging each other’s resources to advance the District’s economic development priorities. Among areas of interest are promoting “Insure U for Small Business,” a national insurance educational campaign for small business developed by the National Association of Insurance Commissioners, attracting more banks to underserved communities, and promoting Washington, DC, as an attractive location for financial-service businesses, especially captive insurance companies.
DISB and WDCEP will host a seminar to roll out “Insure U for Small Business” (www.insureUonline.org/smallbusiness) on July 19. Visit disb.dc.gov for details.
Enforcement Action Taken Against DISB-Licensed Money Transmitter
The DISB Hearing Officer entered a default judgment and order of revocation of a money transmitter’s license and penalty in the amount of $7,450 recently. The enforcement action is the result of a 2005 on-site examination that revealed an array of violations against the Money Transmitter’s Act, violations against the District business registration including maintaining corporate good standing, anti-money laundering program violations, accounting books and record irregularities, and the business owner failing to appear for a scheduled hearing and agreeing to turn in his license.
DISB Offers Information and Assistance to Businesses and Residents Affected by Fires
In early May, DISB offered assistance to District residents and businesses affected by fires that destroyed two historic landmarks, Eastern Market and Georgetown Neighborhood Library, as well as 12 homes. The agency offered assistance in filing claims with insurance providers and helping those affected understand their rights as policyholders. DISB coordinated its response through a mayoral liaison with the merchants and issued a press release that provided information to the affected businesses and residents. It also included information on the national consumer-education insurance campaign, Insure U, which explains the most common types of insurance for individuals and small businesses in an easy-to-understand style and format.
DISB to Work With Other Government Agencies on Consumer Protection Initiatives
DISB will work with DC Attorney General Linda Singer who has announced a series of consumer protection initiatives by the Office of the Attorney General to address many of the problems highlighted in the report, “The High Cost of Being Poor in the District of Columbia: Financial Products and Services.” The report was prepared with the help of the Center for Responsible Lending and the Urban Institute. It focuses on the disadvantages that poor consumers in the District face in obtaining financial products and services, including check cashing, short-term loans and mortgage financing.
The Attorney General, along with DISB, the Council of the District of Columbia, the Department of Consumer and Regulatory Affairs, Legal Counsel for the Elderly, and the Urban Institute, will convene a series of town hall meetings to learn about these challenges and identify additional services needed by residents who use financial and retail services intended primarily for low-income consumers. The agencies will explore legislation to address payday loans, price disclosures by money transmitters, a cap on check-cashing fees, foreclosure rescue scams and standard price disclosures by rent-to-own furniture, among others. Attorney General Singer is exploring the possibility of creating a working group of investigators from DISB, attorneys from her office and the Federal Trade Commission to prosecute predatory mortgage lending; investigating and prosecuting foreclosure rescue scams; and developing and disseminating consumer education that addresses basic money management issues.