NewsletterFALL 2011 / WINTER 2012

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INSIDE Outlook2 Partners Council/Staff/Conference Info

Between Iraq and A Hard Place

3 Cy Pres Donors and Awards

A Cy Pres by Any Other Name

4 Smart Meters NotVery Smart Move

5 Working Cars forWorking Families

Only One Bank Left

6 ThankYou to Contributors

7 A Note from the Executive Director

Modernizing the Mass. Exemption Laws

8 NCLC Releases 2011 Revised Editions

Bankruptcy Mortgage ProjectWebsite

Attorneys Flock to Boston in July

9 NCLCWelcomes New Staff

A UniqueWay to Support NCLC

7 WINTHROP SQUAREBOSTON, MA02110-1245617.542.8010www.NCLC.org

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N AT I O N A L C O N S U M E R L AW C E N T E R

Outlook

Inside Washingtonby Lauren Saunders, Managing Attorney in NCLC’s Washington office

continued on Page 10

continued on Page 11

The crown jewel of last year’sfinancial reform bill was the newConsumer Financial ProtectionBureau, which officially began workon July 21, 2011.We are all eager fornew measures to protect consumers

Losing one’s job and the incomeassociated with it is painful anddangerous for individuals and theirfamilies. NCLC’s recent survey andreport on prepaid cards for unem-ployment compensation, occurringon a state-by-state basis, details howmany of the 13 million Americanswho are unemployed are gettingstung with unnecessary and poorlydisclosed fees in the 40 states thatuse prepaid cards for unemploymentcompensation (UC). At the sametime, the best cards may benefit

from unfair practices involvingmortgages, overdraft fees, studentloans, and other products.

The most important short termwork, however, has been to build the

unbanked consumers and savestates money. As is the case withmany financial innovations, it is allin how they are put together, whothey benefit, and how they areoffered and regulated.

“Prepaid cards can help states elim-inate the costs of paper checks andhelp unbanked workers avoid checkcashing fees and the risks of carry-ing cash,” said Lauren Saunders,managing attorney of NCLC’sWashington, D.C. office and the

Making Prepaid Unemployment Compensation Cards Work:High Impact NCLC Survey, Report, and Action

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primary author of the report. “Yetprepaid card junk fees stack the deckagainst jobless Americans who needevery dollar during a financiallystressful time.”

Unemployment Compensation PrepaidCards: States Can Deal Workers aWinning Hand by Discarding Junk Feesanalyses the payment options, fees,and access to account informationavailable to workers in every statethat uses UC prepaid cards. It alsosurveys the laws that do (or do not)

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CFPB Taking Shape But Under Attack—Fighting to Keep It!

We have a fight on our hands,every bit as important as the fightto pass the Dodd-Frank bill lastyear. If you care about having awatchdog to look out for consumers,you need to speak up.We cannot letthe watchdog be turned into a lapdog.L A U R E N S A U N D E R S

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Outlook Fall 2011 /Winter 2012

Outlookis a biannual publication of theNational Consumer Law Centerintended to inform our supportersabout the Center’s advocacy andfundraising activities.For additional information or to beplaced on the Outlook e-mail listcontact us at:

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N C L CPARTNERS COUNCIL

Leadership for NCLC

ChairBryan KemnitzerRoy E. Barnes

Leonard A. BennettO. Randolph BraggRobert M. BramsonBernard E. BrownJames L. Brown

Elizabeth J. CabraserSheila CanavanMark A. Chavez

William H. CrowderMichael D. DonovanTimothy E. EbleCary L. Flitter

Robert S. GreenKathleen E. KeestWilliam M. KriegSteve D. LarsonRobert I. LaxSeth R. LesserArthur D. Levy

Michael P. MalakoffNiall P. McCarthyDaniel J. MulliganJohn T. MurrayDavid J. PhilippsJohn Roddy

Howard RothbloomJames C. Sturdevant

Janet R. Varnell

NATIONAL CONSUMER LAW CENTEROUTLOOK

7 WINTHROP SQUARE4TH FLOOR

BOSTON, MA 02110-1245www.NCLC.org

gtuckman@nclc.org

N C L C S TA F F

Legal EditorVivian AbrahamStaff AttorneyJeremiah BattleEditorial AsistantKim CalviDeputy Director of AdvocacyCarolyn CarterStaff Attorney (WashingtonOffice)Alys CohenStaff AttorneyArielle CohenAdministrative AssistantEleanna CruzStaff AttorneyCharles DelbaumDirector of Development andProject PlanningRichard DuBoisAssistant to Director of FinanceToni FisherPublisher’s AssistantShannon HalbrookStaff AttorneyCharles HarakDevelopment Events &Training CoordinatorJessica HiemenzDeputy DirectorRobert HobbsSenior Energy AnalystJohn HowatStaff AttorneyHon. Carol Kenner (retired)

Director of FinanceMargaret KohlerDirector of CommunicationsJan KruseOperations ManagerSvetlana LadanLegal EditorDenise LisioStaff AttorneyDeanne LooninDevelopment AssistantLauren MahoneyResearch AssistantJillian McLaughlinExecutive DirectorWillard P. OgburnOffice ManagerDebbie ParzialeStaff Attorney (WashingtonOffice)Andrew PizorStaff AttorneyJohn RaoDirector of LitigationStuart RossmanManaging Attorney(Washington Office)Lauren SaundersOf CounselMargot SaundersLegal EditorEric SecoyStaff AttorneyJon Sheldon

Staff AccountantOlga ShmatkovaCustomer Service ManagerStacy SmithLegal EditorDorothy TanOf CounselDiane ThompsonPublications AssistantTed ThompsonDirector of Individual GivingGerald TuckmanOf CounselTara TwomeyStaff AttorneyJohn Van AlstStaff AttorneyGeoffry WalshStaff Attorney (WashingtonOffice)Olivia WeinAdministrative Assistant(Washington Office)Shirlon WilliamsStaff AttorneyOdette WilliamsonStaff AttorneyDarlene WongDirector of PublicationsDonna WongStaff AttorneyChi Chi WuStaff AttorneyPersis Yu

®

CHICAGO, ILLINOISNOVEMBER 3-6, 2011Complete information isavailable at www.NCLC.org

CONFERENCELITIGATION

CONSUMERRIGHTS

20th

and more!

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Fall 2011 /Winter 2012 Outlook 3

Cy Pres DONORSOctober 2010-August 2011We appreciate those who have supportedNCLC by directing cy pres to the Center.

Robert L.ArleoJohnW. BarrettNancy Barron (2)

O. Randolph Bragg (3)Edward A. Broderick (2)

Paul A. BrooksPamela A. CarJeffrey I. CartonMark A. ChavezJames J. Davis, Jr.Adam J. FishbeinJonathan HagnWilliam F. HornScott A. KamberLawrence Katz

Bryan Kemnitzer (3)Michael D. Kinkley (2)

Gary KleinJeffrey A. KonciusWilliam M. KriegRobert I. Lax

Lilys D. McCoy (2)Matthew P. McCue (2)RobertW.MurphyDavid Parisi

David J. PhilippsLance A. RaphaelCraig M. Shapiro (2)Robert Stempler

Alexander B.Trueblood (2)Joel O.Wooten

Donald A.Yarbrough

NCLC received an exciting letter fromOregon attorney David Sugerman thispast July. It said, “To my way of thinking,there is little sweeter than writing to you withour trust check to National Consumer LawCenter for $20,000.These unrestricted fundswere part of the fee award proposed in ourlong-running consumer class action againstComcast. The case arose out of illegal latefee assessments. My co-counsel, TimQuenelle, and I are pleased with the results.We know that NCLC will put the funds togood use.”

Oregon provides for cy pres awards onlywhere both parties agree. Comcastwould only agree to make charitablecontributions, totaling $75,000, toUnited Way and Oregon Food Bank.Tim and David had a broader view ofwhat organizations should benefit fromcy pres, those most able to benefit theclass represented in the case.

Since they were unable to direct the cypres funds to organizations representinglow income clients and consumers of allkinds, Sugerman and Quenelle decidedto dedicate $100,000 of its fees on thecase to the Campaign for Equal Justice,St. Andrews Legal Clinic, NCLC, andthe Public Justice Foundation.

A Cy Pres by Any Other Name . . .

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When asked why he and Quenelle wentbeyond the cy pres to donate from theirown fee, Sugerman answered that hewanted to have more impact than a good payday for a lot of hard work. He went on tosay, “These funds will have impact, a powerfuland profound effect.To be able to provide thisgift is a total joy, I only wish I could give more.”

In thanking David, JerryTuckman,Directorof Individual Giving for NCLC,mentionedthat the gift provided needed funds, butalso served to energize NCLC with theknowledge that its work is deemed necessaryand significant, providing a psychologicalboost at a time when funds are scarce andvictories evenmore hard-fought than before.

Sugerman responded, “I am pleased the giftgoes further than the dollars. I do not need theindividual acknowledgement but if publicizing itprovides a way of reaching out to generate other,similar gifts, I am all for it.As your work has hadso much significance to me and countless others,let my gift have more significance to NCLC.”

Please consider honoringDavid Sugerman’s

work and the work of NCLC though

your own contributions, both cy pres rec-

ommendations and individual gifts.Your

generosity will then come back to benefit

you in your work and the clients you serve.

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continued on Page 11

Darryl Henry retired from his 20-yearnaval career as a 1st Class Petty Officerwith both retirement and partial disabilitypension income. He needed additionalfunds to consolidate debt and to buy ahome. Financing the home was difficult,because he already had loans and hiscredit score did not make him eligiblefor a prime rate. He had seen numerousads in military publications placed byRetired Military Financial Services (akaStructured Investments, Co. or SICO),offering to give him a large cash advancein return for eight years of his pensionpayments. When he asked for moreinformation, Darryl was told that thearrangement was not a loan and that it

would not appear on his credit report.He decided to use the funds to pay offexisting loans in order to raise his creditscore and hopefully qualify for a lowerrate mortgage.

A Usurious Pension SchemeDarryl didn’t receive any Truth inLending disclosures—because the companyinsisted this was not a loan. If Darryl hadreceived disclosures, he would have seenthat this transaction was the equivalentof a loan with an APR of almost 30 per-cent! Not only is that rate much higherthan rates he could have gotten fromresponsible financial institutions, itexceeded the usury limit for legal loans

under the law of California (whereSICO is based).

NNCCLLCC TTeeaammss wwiitthh AAttttoorrnneeyy BBrraammssoonnUpon reading an NCLC report called InHarm’s Way—At Home: Consumer Scamsand the Direct Targeting of America's Militaryand VeteransMr. Henry contacted NCLCwho subsequently partnered with attorneyRob Bramson in bringing suit inCalifornia Superior Court (Santa Ana,Calif., Orange County) against SICO.

Many of Mr. Henry’s pertinent documentswith SICO claimed that the transactionwas not to be considered a loan. The

Between IRAQ and A Hard Place—An NCLC Litigation Story

Prepaid utility serviceis disproportionatelyconcentrated amonglow-income utilitycustomers. The serviceis sometimes moreexpensive than standard, credit-basedservice, and usuallyincludes a grab bag ofextra fees and chargesfor making payments.JOHN HOWAT

Outlook Fall 2011 /Winter 2012 F4

Have you heard about smart meters?They are all the rage. They enable utilitycompanies to remotely monitor usage,saving them time and money, and will alsoenable them to remotely disconnect cus-tomers’ utility service. NCLC doesn’t thinkthey are a very smart idea, as presentlyused, and has focused its resources andexpertise on suggesting how consumerscan be protected and these meters canwork for them as well as utility companies.

Tens of millions of new smart meters arebeing prepared for use. They are currentlyin use or will be broadly deployed by 2015in Oregon, California, Idaho, Nevada,Arizona, Oklahoma, Texas, Iowa,Wisconsin, Michigan, Ohio, Alabama,Georgia, Florida, Pennsylvania, NewJersey, Maryland, District of Columbia,Virginia, Vermont, Maine, and Connecticut.

Most utilities bill after you have used theservice. They send you a bill based onusage which has already taken place(although on some occasions they estimateand adjust at a later time when the actualmeter has been read). However, manyutilities are now interested in using smartmeters to implement prepaid electricservice, where customers must pay inadvance and where service is immediatelyand remotely disconnected as billingcredits are exhausted. Wherever it is used,prepaid utility service is disproportion-ately concentrated among low-incomeutility customers. The service is sometimesmore expensive than standard, credit-basedservice, and usually includes a grab bagof extra fees and charges for making pay-ments. Customers using prepaid utilitiestend to make frequent, small payments,and experience service disconnectionsmore frequently than customers takingcredit-based service. This troublingdevelopment requires close attention.

What is NCLC doing and how shouldyou respond if confronted by smart

meters? NCLC is part of a network ofadvocates working on smart meter andprepayment issues. Where there is somegood support, like in California andIowa, advocates recommend a “just sayno” position, an outright rejection.Where approvals are already in place, werecommend a set of conditions whichmitigate some of the negative effects ofsmart meters, prepayment and remotedisconnection of necessary utility service.Without meter readers and paper bills,the utility’s costs are reduced, so rates forprepayment should also be dramaticallyreduced. “Friendly credit” should beoffered instead of shut-offs, and customersshould have access to reasonable paymentplans or “arrearage management” programsas alternatives to unwelcome loss ofservice. Remote disconnections shouldbe prohibited in cases where there areissues of health and safety, disability,children in the house, or severe weatherconditions. Per-payment fees levied by

Smart Meters Not Very Smart Move for Consumers

John Howat, Senior Energy Analyst

the utilities should be prevented so thatpeople who need to make multiple pay-ments during a month are not hit withcostly fees each time they pay.

In a recent letter, Jerry McKim, BureauChief of the State of Iowa’s Bureau ofEnergy Assistance thanked NCLC forallowing John Howat to attend and par-ticipate in a prepaid meter workshopheld by the Iowa Utilities Board. InJerry’s words, John was “the undisputedexpert” among all attendees and washelpful in efforts to beat back an attemptby the Iowa Association of ElectricCooperatives to seek permission fromregulators to begin using prepaid metersafter having lost in an attempt to havethe state legislature pass a bill would have“redefined disconnection of service as avoluntary termination in order to avoidcritical health and safety consumerprotections.” The prepay meter debatecontinues. Jerry concludes that “Due toJohn’s attendance, the rights of lowincome Iowans were strengthened andaffirmed”.

This area is evolving and is being closelyfollowed by NCLC’s energy, utilities, andtelecommunications staff, including JohnHowat, Olivia Wein, Charlie Harak, andDarlene Wong. For more information,visit www.nclc.org.

(

Fall 2011 /Winter 2012 Outlook 5

A safe and reliable car is essential to thesuccess of most working families. Childcare, jobs, groceries, medical appoint-ments, and so many other everyday tasksare often out of reach for families withouta car.Yet buying, financing, and keepinga reliable car is fraught with dangers foreveryone and simply not possible forsome families.

Working Cars for Working Families is agroup of organizations united to ensurethat working families can get, keep, anduse a reliable used car at fair terms. It is acoalition of varied organizations, allrecognizing the importance of a car tothe success of families. Collectively andindividually the group strives to improvepublic policy, industry practices, andconsumer understanding. It works invariety of areas such as:• Improving consumer protection tostop abuses in car sales and finance andbring fairness and transparency to themarketplace.

Working Cars for Working Families—NCLC Advocacy Keeps Program Rolling

• Promoting non-profits that providestruggling families with cars or financingor both at subsidized rates.• Improving data collection and analysisto better understand the benefits of andchallenges to car ownership for workingfamilies.

Working Cars for Working Families isfighting to ensure that families get a fairdeal when buying and financing a carand that the lack of a car does not standin the way of families’ ability to becomeeconomically successful. It pursues policyreform to bring transparency and fairnessto the markets for used cars and carfinance. It also promotes policy andpractice solutions to help non-profitownership programs that help strugglingfamilies get a car.

NCLC is grateful for the generousfunding provided by the Annie E. CaseyFoundation in support of Working CarsforWorking Families.The project is also

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funded through your unrestricted giftsto NCLC and directed by attorney JohnVanAlst. It is also staffed by NCLC attor-neys Carolyn Carter and Jon Sheldon.

The program and the website outlinethe need for:

• Promoting improved public policy

• Regulating sales and financing

• Eliminating the sale of dangerousand unreliable vehicles

• Curbing arbitrary and dangerousrepossession

• Strengthening car ownershipprograms

M

JohnVan Alst, Staff Attorney

NCLC Pushes RALs to the Brink of Extinction: Only One Bank LeftNCLC and other consumer groupscheered a recent announcement byH&R Block, the largest tax preparationchain in the country, that it will not offerrefund anticipation loans in 2012.

“H&R Block did the right thing bydeciding to ‘just say no’ to RALs,” saidAttorney Chi ChiWu,NCLC’s expert onRAL lending. “We have criticized theseloans as high cost and risky for over adecade, and we are pleased that Blockhas actively decided not to offer them.”

After ten years of advocacy, NCLC andits partners have achieved a tremendousvictory by nearly eliminating RAL lendingas we know it. Only one bank has said it

will make RALs in 2012, and that bankis under fire from its federal regulator.

“While an occasional payday or fringelender may make a tax-time loan, the saleof RALs as an industry-wide practice bythousands of preparers is almost over,” saidWu. “RALs will no longer drain the taxrefunds of millions of mostly low-incometaxpayers, nor will RALs skim hundredsof millions in Earned IncomeTax Creditdollars from the most vulnerable workersin our economy.”

NCLC’s work protecting low-incomefamilies against RALs has been madepossible by the generous and longstandingsupport of theAnnie E.Casey Foundationand through your individual unrestrictedcontributions which NCLC has allocatedto this project.

Outlook Fall 2011 /Winter 2012 F6

J.Thomas BlackBrian L. BogerO. Randolph BraggTerry B BrauerAlana BrennerJim BreslauerBrian L. BrombergRandall H. BrookAshley BrooksJohn G. BrooksKaren E BrownLauren E. BrownLorray S. C. BrownMatthew BrownfieldJim CampenEllen C. CarlsonMary P. CartwrightMichael ChildersDaniel E. ClaggettTheodore ClattenburgRobert P. CoccoAndrew CogdellHarvey and Naomi CohenNina L. CoilRebekah Cook-MackKaren CordryPeter R. CuriaJohn J. CurtinPaul Patrick DaleyDavid DawsonDaniel G. DeneenIshbel DickensRobert DitzionLorca DivaleThomas DomonoskeKaren Smith DrewPeter DrymalskiCourtney DurhamMarley Ford EigerDavid L. EntinRichard ErdmanJanet FaganBenjamin H FarrowCheryl D. FeuermanJohn C. FirminJames B. FishmanJames FlugNeil J. FogartyMary C. FonsJean Ann Fox

Sustaining Gifts$20,000+David F. Sugerman

Leadership Circle$5,000-19,999Robert M. BramsonMark A. ChavezConsumer AdvocacyCenter, PCTimothy E. EbleDaniel A. EdelmanKeith J. KeoghSteve D. LarsonMichael P. MalakoffDavid J. PhilippsMary E. PhilippsJames SheddenThomas A.TarterJanet R.Varnell

Benefactors$2,500-4,999Cary L. FlitterSeth R. LesserRobertW.Murphy

Advocates$1000-2499Daniel S. BlinnWhitney C. BuchananAlexander BurkeAnthony B. ChingMichael D. DonovanVictor FarahCliff HorwitzDale K. IrwinMichael D. KinkleyJonathan L. KravetzArthur D. LevyIrwin TraussWilliamT.Vukowich

Good Friends$1-999Irv AckelsbergNorman BalassianoDarrinW BelousekJennifer S. BidwellDavid F. Black

Oda C. FriedheimGeorge GaberlavageClarissa GaffJohn D. GiglioMitchell D. GlinerRobin L. GodfreyPhil GoldsmithDennis GoldsteinTara L. GoodwinNorman A. GoogelJohn H. GoolsbyMichael M. GreenfieldRobert Neil GrossbartW. Howard GunnMary Ruth HallRollie R. HansonGeorge HarakIrma HardinRobert M. HartDorothy HerreraSettlageSuzan HesterGail HillebrandRobert HobbsGeorge HollerMichael G. HowardMelissa A. HuelsmanAdrienne HurtCheryl L. HystadDori Rose IndaPaulW. JohnsonMark T. JohnsonKatherine J. JonesJoseph JonesDana KarniKirsten E. KeefeKathleen E. KeestJohn R. KellerEllen Holland KellerSusan N. KellySusan KephartEdward KerleyNovlette R KiddRonald J. KimEugene KimmelmanMichelle KuPeter KuzmaAnnie LainerJerome S. LametNorman K. K. Lau

Thank You!We appreciate contributions from the generous donors listed below who have provided much welcomedsupport for NCLC advocacy and programs. NCLC is stronger and more effective with your help.

This list is compiled each year between Consumer Rights Litigation Conferences. If you have beenleft off the list unintentionally, or there appears to be an error, please contact JerryTuckman at NCLC(gtuckman@nclc.org).

Therese M. LawlessDavid A. LeenRoberta LevitonMark H. LeymasterBruce LippmannGregg LombardiJovanna LongoChristine LuzzieSue LyonStewart MacaulayJack MalickiPaul MannesDonald MarritzMandi Lee MatlockScott MaurerThomas A. MayesMargaret MayoraDancy McKinney-ParkerKeith P. MerrittLisa M. MezzettiMichael A. MullettRobert A. MyersYugo NakaiGary H. NashFred A. NeilMichael O. NelsonDirk NeyhartChristopher Colt NorthJonah OrlofskySheila M. O'SullivanTamara ParkerLowell C. PaulAbel L. PierreJames M. PietzDaleW. PittmanRaphael PodolskyAndrew S PollisSarah PorissKatherine M. PorterRichard K. PresentMary Dee PridgenMichael J. QuirkRaun RasmussenMark R. ReedyAnne Marie ReganGeneva ReidElizabeth RenuartCharles N. RileyAllan G. RodgersCharles Roedersheimer

FlorenceW. RoismanPhyllis RoweRichard J. RubinScott J. RubinRobert SableRavinder SahotaCathy A. SchoenStacey SchreftMarshall S. ShapoElizabeth P. ShayXavier ShellmanJonathan ShubNorman I. SilberDolores Silva SmithJohn A. SpanogleSamuel L. SpearThomas H. StantonAndrea Bopp StarkKevin SteinMark H. SteinbachKatie StuartJames C. SturdevantStephen L. SwannEric B.TannerSteven A.TaterkaKathryn L TaylorWilliamT.TerrellRobert TreinenJohn N. UkegbuJamesVande BunteAlanVersonGeoffryWalshRoger D.WattsThomasW.WeeksRonald D.WeissAlan M.WhiteDiana C.WhiteTraceyWhitleyJamesWilcoxHarold L.WilliamsLauren E.WillisMartin E.WolfBrianWolfmanChristine A.WolkMartinWoodwardBeverlyYangJamesYoungerman

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Fall 2011 /Winter 2012 Outlook 7

Dear Colleagues,As you’ll see from thepages of this editionof Outlook, NCLC ismade up of a group

of committed attorneys who seek tolevel the playing field for low-incomeconsumers.We use our expertise to litigateimpact cases, testify before rule-makingbodies, publish special reports, andmore. Since your practice is essential towhat we seek, we support you withmanuals, trainings, list serves, as expertwitnesses and advisors, and in manyother ways.

We get lots of letters from attorneysthanking us for our work.Often they aredramatic, but they do not need to bedramatic to be meaningful. After lastspring’s Fair Debt Collection PracticesConference we received two such letters.The first, which was addressed toDeputy Director Bob Hobbs, said“Starting my own law firm is a dauntingtask, but you offered me great advice . . .”and continued “It’s good to know thateven in a competitive field, there are stillpeople like you willing to offer a helpinghand.” The other note, directly to me,first thanked us for a scholarship and thennoted how the conference informationwas used on the first day back at work.“Ihave been assisting a low-income disabledcouple taken advantage of when theywere sold on a scheme to make improve-ments to their home—improvementswhich were never finished and added novalue to the property.Debt collectors arenow seeking payment for the work.Theconference has improved my ability toprovide services to these and otherdeserving clients.”

I know we have helped other attorneysand their practices over the years andhope we have helped you in ways largeand small.The unmitigated greed fuelingabusive financial practices and theopportunities we have (and challengeswe face) to change today’s marketplaceare enormous.We continue to collaboratewith other organizations and attorneys

A NOTE

FROM THE

EXECUTIVE

DIRECTOR

WhoWe Are,WhatWe Do, andHowYou Can Help Us

working for economic justice to stemabuses and create a more just environmentfor all.

Elsewhere in this newsletter we list andthank those who have provided cy presawards and those who have providedindividual gifts of various kinds.We arenot building any endowments here atNCLC.We need these funds to carry outour most pressing advocacy.

Thanks to those who have given. Pleaseconsider giving more because, in achanging legal and policy landscape, ourneeds are even greater now. If your nameis not on the list, please think about whyyou haven’t given and consider giving asgenerously you can in the interest ofyour clients and the population we allserve. There is information in thenewsletter on how you can give to usand support our work.

Thank you for being a part of what weall do.We should all be very proud ofour work.

WILLARD P. OGBURN

As a result of persistent and effectiveadvocacy by NCLC, Massachusetts hasamended its exemptions laws to betterprotect the family car and other necessities.Previously,Massachusetts had among theworst protections imaginable.NCLC haslong supported efforts improvingexemptions laws across the country.

This Massachusetts law sets out whatproperty debtors are able to protect fromunsecured judgment creditors. From anarticle in the Boston Globe (1/8/11):

The new law updates decades-old propertyexemptions, allowing consumers to keep a carworth up to $7,500 out of reach of collectors,up from $700 in the past. Owners who are60 or older or disabled will get a $15,000 carexemption. Consumers also may hold on to$2,500 in a bank account, five times the cur-rent level.

“This new law will protect thousands ofstruggling Massachusetts residents, and allowthem to house, feed, and support their familiesand continue to work as they struggle to paydebts and get back on their feet after an economicsetback,” said Robert J. Hobbs, deputy directorof the National Consumer Law Center).

NCLC’s advocacy for the new law couldnot have taken place without the generousand unrestricted support of NCLC’sindividual and cy pres donors.

Modernizing theMassachusetts Exemption

Laws

Willard P. Ogburn,NCLC Executive Director

It’s Easy to

Donate to NCLC

Point, Click,

Contribute

www.nclc.org

Outlook Fall 2011 /Winter 2012 F8

NCLC welcomed 165 attorneys to theBoston area for our first-ever MortgageConference, July 14-15,Handling MortgageCases from A to Z:Training and Hands-OnWorkshops for Litigators at All Levels.Participants were able to choose from over20 substantive courses that covered hottopics such as HAMP litigation, How toRepresent Borrowers in Foreclosure

Attorneys Flock to Boston in JulyNCLCʼs First Mortgage Litigation Conference a Success

Fair Debt Collection (7th ed. Aug. 2011)(two volumes, 1300 pp.). Cited threetimes recently by the U.S. SupremeCourt, this definitive FDCPA treatise isthe primary reference in the field ondebt collection harassment. Containsgreatly increased analysis of the explosionof FDCPA appellate decisions and coverspunitive damages, state claims againstcreditors, unauthorized practice of law,credit counseling, and debt settlement.

Collection Actions (2d ed.Aug. 2011) (594pp.) expands this unique work on howto represent consumers being sued ondebt—debt buyer lawsuits for credit carddebt, medical collections, wage and bankaccount garnishments, proof of standingto collect, and much more.

NCLC in August also released six othernew updates:• Foreclosures 2011 Supplement• Cost of Credit 2011 Supplement• Consumer Class Actions 2011

Supplement• Consumer Banking and Payments

Law 2011 Supplement• Credit Discrimination 2011 Supplement• ConsumerWarranty Law 2011

Supplement

All titles include free companion websitesto download, print, and edit pleadings,agency interpretations, case summaries,and more. For more information, or toorder, visit www.nclc.org/shop or call617-542-9495.

Mediation,Truth-in-Lending and RESPA,and Standing and Documentation issues.

Thanks to a generous grant from theConsumer Protection and EducationFund of the Attorneys General, 35 legalservices attorneys were awarded scholar-ships that allowed them to attend thisimportant conference.

NCLC created this online resource forcourts, trustees, attorneys, mortgageservicers, academics, and consumers inthe bankruptcy community. It organizesand provides access to more than 500local rules, forms, general orders, andcourt opinions addressing a variety ofmortgage issues in consumer bankruptcycases across the United States. This free“one-stop shop” collection can be aresource for those interested in adoptingnew programs and local rules to assistconsumers, their attorneys, and mortgagecreditors in addressing mortgage claimsand seeking alternatives to foreclosure.Many of the website’s documents are noteasily accessible using traditional legalresearch tools. The website was fundedin part by a grant from the Endowmentfor Education of the NationalConference of Bankruptcy Judges,* aswell as from your contributions.

The website is organized by topic: LossMitigation and Mediation, Cure PlanRequirements, Stay Relief Requirements,Lien Stripping, and Chapter 13 Plans. Itis searchable by state, subject, courtlocation (district and circuit), or documenttype.Visitors can also click on a map topull up all relevant information for aparticular state. Visitors can view anddownload all referenced documents.

New—Bankruptcy Mortgage Project Website

The National Consumer Law Centerwill periodically update the website.Weencourage individuals to review thedocuments in their district and informus of any omissions. Additional docu-ments identified through this processwill be added to the website. Feedbackon the website is also welcome. Pleasecontact NCLC Attorney John Rao atjrao@nclc.org.

John Rao, Staff Attorney

J

NCLC Releases New2011 Revised Editions

*In funding the grant, the Endowment does not

endorse nor express any opinion about the

methodology utilized, or any conclusions,

opinions, or results contained in any report,

article, book, or other writing based on the

research funded by the Endowment.

NNCCLLCC WWEELLCCOOMMEESS NNEEWW SSTTAAFFFF

Fall 2011 / Winter 2012 Outlook 9

NCLC is pleased to welcome new staffwho will use their important experiences,exceptional talents, and commitment toeconomic justice to further our work.

Jeremiah “Jerry” Battle is a staff attorneyat NCLC and works on foreclosure pre-vention and predatory consumer loanissues as well as our Working Cars forWorking Families initiative. Previously,Jerry was a staff attorney with NortheastNew Jersey Legal Services where hefocused on predatory lending actionsagainst mortgage lenders and publicbenefits cases affecting low income clients.Jerry has also served as a ManagingAttorney with New Jersey Protectionand Advocacy, Inc. (now Disability RightsNew Jersey) where he concentrated ondisability rights issues. He is a graduateof Rutgers School of Law-Newark, anda graduate, with high honors, ofLivingston College-Rutgers University.

Persis Yu is a staff attorney at NCLCand works on the Student LoanBorrower Assistance Project and onother consumer advocacy issues. Prior tojoining NCLC, Persis was Hanna S.Cohn Equal Justice Fellow at EmpireJustice Center in Rochester, New York.Her fellowship project focused on creditreporting issues facing low-incomeconsumers, specifically in the areas of

accuracy, housing and employment.Persis is a graduate of Seattle UniversitySchool of Law, and holds a Masters ofSocial Work from the University ofWashington, and a Bachelor of Arts fromMount Holyoke College.

Gerald M. “Jerry” Tuckman joinedNCLC as Director of Individual Giving.Jerry has worked with a number ofacademic, medical, and non-profit insti-tutions in matching donor interests withinstitutional needs. Prior to his fund-raisingwork, he used his social work degree(community organizing) in support of var-ious housing and community economicdevelopment activities throughout theCommonwealth of Massachusetts. Jerryassists the Development Department invarious fund raising and donor-centeredactivities designed to keep supporters awareof, and engaged in, the activities of NCLC.

(Left to right) Jerry Battle, Persis Yu and Jerry Tuckman.

A number of months ago, we sharedsome good news with you. We wereplaced on a list of nonprofit groups thatwill receive funds from CREDO Mobilein 2011.

How much we receive depends on you.

CREDO is an activist network and aprovider of mobile and long distancephone services linked to Working Assets.They donate a portion of their profits toa wide range of nonprofit groups. Lastyear, they donated $2.7 million—morethan $67 million since 1985.

Each year, they ask fellow activists tovote on the percentage of those fundsthat each group should get. This is whereyou come in. The more votes we receive,the greater our share of funding.

As you know, our mission and our passionis protecting consumers. In that spirit, wewish to make you aware of this opportu-nity to support our work and hope youact on this if you are comfortable doingso. While we appreciate this opportunity,we do not endorse CREDO or anyother group.

Voting is easy and free. If you wish tosupport us in this way, go towww.credomobile.com/vote and followthe instructions to vote for us. You canvote whether you're a CREDO customeror not.

Thank you for helping us with ourwork!

NCLC 24-7www.NCLC.org

NCLC is working with a website design team to substantially improve and streamline themortgage and foreclosure section of our website. The revised section will be reorganized andmade easier to navigate. Each section will contain a wealth of information, including links to:

• policy analysis and testimony;

• summaries of key state and federal programs;

• training and conference information;

• links to books, articles, and other valuable resources. Look for the new and improved webpages before the end of this year!

COMING SOON!NCLC Is Expanding Foreclosure and Mortgage Web Section

A Unique Way to Support NCLC

in 2011

Outlook Fall 2011 /Winter 2012 F10 3

make this a truly public agency, one thatinteracts with, listens to, and is accountableto the American public.

The “Know BeforeYou Owe” project torewrite the basic mortgage and settlementcosts disclosure form is one example ofthis effort.The CFPB has been using aninteractive website that really engagespeople about what they like, dislike, andwant out of a new mortgage shoppingform. The idea is not to create justanother legal disclosure, but to designone that truly empowers consumers tofind the best deal.

Another example of thoughtful designof the CFPB is the building of the super-vision staff. The power to get inside ofthe books of both banks and non-bankcompanies to see what is going on andto detect risks early is an importantCFPB tool. But at other agencies, banksupervisors who examined the samebank year in and year out sometimesdeveloped too cozy a relationship withthe bank they examined.

Warren made a few early decisions tocombat this problem. While the CFPBneeded some experienced examiners, theBureau has also welcomed a lot of newrecruits and is working to build a cultureof consumer protection. Examiners willbe cross-trained to supervise both banksand nonbank industries like paydaylenders, so that examiners can movearound, get fresh challenges, examinenew industries from another perspective,and not be tied to the social network ofa company town. I met some of the newexaminers at the celebration of theCFPB’s launch date this past July 21st.Even the experienced examiners wereexcited at the new training they werebeing given,including“people skills”to helpcommunications and problem solving.

With all of this exciting work going on,you would think that even skepticswould withhold judgment and wait tojudge the CFPB by its work. But the inkwas not even dry on the financial reform

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agency itself. It has been exciting towatch the CFPB take shape as the firstfederal agency with the primary missionof protecting consumers in the financialworld. NCLC has been in the forefrontof strong efforts to get the agency off onthe right track. It has devoted a great dealof time to issuing papers and commentingon CFPB proposals while cultivatingstrong staff-to-staff relationships.

I am also fearful for the CFPB’s future.The Bureau is under serious attack fromindustry lobbyists, and it is astonishinghow short memories are.

Harvard Law Professor ElizabethWarrenled the effort for the first year to buildthe CFPB from the ground up withNCLC devoting much time and effortto helping in that regard. Last summershe passed the torch to her deputy, RajDate, who is in charge of the CFPBwhile former Ohio Attorney GeneralRichard Cordray awaits confirmation asthe first Director.

Warren and Date have done a remarkablejob of creating a new agency virtuallyfrom scratch. Although some employeeshave come from other agencies that hadbeen criticized in the past, they are aself-selected group excited at the newchallenge. Staff new to the governmentcome from all walks of life, including thefinancial industry, the consumer advocacyworld, and others who have no back-ground in consumer financial issues.Themore of the CFPB staff I meet, whatevertheir background, the more I amimpressed by the esprit de corps, thestrong sense of mission, and the wealthof diversity of talents that they bring toconsumer protection

Warren emphasized to me that she wascommitted to creating the “first 21stcentury agency”, one that will takeadvantage of new technologies and lessonsfrom the past.The overriding goal is to

Inside Washington.....continued from Page 1

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bill before the lobbyists who fought theagency’s creation began planning roundtwo.With a more hostile Congress afterthe 2010 elections,we are now rehashingthe same debates that we had last year.

A few months ago, 44 senators signed aletter refusing to confirm anyone todirect the CFPB unless Congress makesa number of changes to weaken theagency’s independence. Instead of focusingattention on the failures of Wall Streetand the foreclosure crisis, some membersof Congress are intent on finding everypossible vehicle to strangle the CFPB inthe crib.

The lobbyists are hoping that the publicis not looking, that they can kill theCFPB with a thousand cuts.Millions arebeing poured into lobbying efforts inDC, while consumers are distracted bythe struggle to hold onto their homes.

We have a fight on our hands, every bitas important as the fight to pass theDodd-Frank bill last year. And we can’tdo it alone. At the end of the day, thevotes and the voices of those who sendtheir Senators and representatives toWashington are more important thanany lobbyist contribution. If you careabout having a watchdog to look out forconsumers, you need to speak up. Wecannot let the watchdog be turned intoa lapdog.

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protect workers and offers recommendationsfor how states can design a card thatworkswellfor both the state and its unemployedworkers.

The report calls out unreasonable $10 to$20 overdraft fees that U.S. Bank has onprepaid cards in five states:Arkansas, Idaho,Nebraska, Ohio, and Oregon. No otherbank’s UC prepaid card charges overdraftfees, which the U.S.Department of Laborhas found are “inconsistent with federallaw.”And theTennessee card (issued by JPMorgan Chase) earned the dubious dis-tinction of having the most junk fees,including ATM, PIN debit, denied trans-action, and balance inquiry fees.

Which states handle these cards in the bestinterest of its citizens? California and NewJersey currently have the best UC cards (bothissued by Bank ofAmerica).Even these stateprograms could improve if the feesweremoreclearly and prominently displayed on web-sites. California could further strengthenits prepaid cards if it offered direct deposit.

The report urged the new U.S.ConsumerFinancial Protection Bureau,which startedwork this summer, and Labor Departmentto work together to ban overdraft fees andother unfair fees and to improve transparency

Making prepaid cards work...continued from Page 1

and competition by posting all fee schedulesin one place so that states and consumerscan compare who has the best hand.

NCLC cautions states not to see prepaidcards as the only answer to payment ofunemployment compensation. Workerswith bank accounts should first be offeredthe choice of direct deposit, a solutionwhich does not entail fees. Unfortunately,they do not have that option in six states:California, Indiana, Kansas, Maryland,Nevada, and Wyoming. Some states aretaking notice and negotiating better termswith card providers to eliminate junk fees.

“It took months of research to obtain thisinformation, so now that we’ve laid thecards on the table, it should help states tocut a better prepaid card deal,” saidSaunders. “This issue also reinforces theneed for the new Consumer FinancialProtection Bureau,which will help safeguardconsumers from unfair fees on prepaid cards,credit cards and other financial products.”

This Prepaid Card report is a part of agood deal of research NCLC has doneon banking and payment systems,including prepaid debit cards.

Download the full report and a state-by-state highlights chart at www.nclc.org.

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IRAQ and a Hard Place...continued from Page 3

plaintiffs’ attorneys argued, essentially, thatif it looks like a loan, and charges interestlike a loan, then it is a loan no matter whatit is called. Furthermore, they argued that,alternatively or in addition to constitutinga loan, the transaction was an assignmentof a military pension prohibited byDepartment of Defense (retirement income)and Veteran’s Administration (disabilityincome) statutory and regulatory provisionsthat onemay not assignmilitary pay (includ-ing retirement and disability pensions).

Court Rules for VeteransThe Superior Court ruled that the subjectpensions transactions were illegal assignmentsthat violated federal law,enjoined the practiceand awarded the remaining plaintiffs’ classnearly $3 million in restitution under theCalifornia Consumer Protection Statute.

Unfortunately for the plaintiffs, SICOappears to be judgment proof.Though theplaintiffs lost a claim that the company’sprincipals were acting outside of their cor-porate authority,the judgehas allowed the caseto continue to move forward in an effort toassess the judgment against the principals bypiercing the corporate veil.Stuart Rossman,Charles Delbaum,andArielle Cohen tookpart in the litigation on behalf of NCLC.

Nonprofit Org.US POSTAGE PAID

Boston, MAPermit No. 57091

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NATIONAL CONSUMER LAW CENTER7 WINTHROP SQUARE, 4TH FLOOR

BOSTON, MA 02110-1245

The National Consumer Law Center is

the nation’s consumer law expert,

helping consumers, advocates and public

policymakers use powerful and complex

consumer laws on behalf of vulnerable

Americans. In doing so we have built—

and are at the center of—

a growing community of advocates with

a commitment to consumer justice.

We protect, promote and interpret the

statutes these advocates use in their

practices, knowing that as more

attorneys understand the complexities of

consumer law we increase access to

consumer justice and move toward our

goal of economic justice for all. Deanne Loonin, NCLC Staff

p

According to a report by NCLC, manyfor-profit (or proprietary) schools havebegun making costly private studentloans, knowing in many cases thatmore than half of these loans will neverbe repaid.

Piling It On: The Growth of ProprietarySchool Loans and the Consequences forStudents shows the urgent need to regulatelending by for-profit schools and providerelief for vulnerable borrowers, many ofwhom attend for-profit schools that failto deliver quality educations as promised.

“Institutional loan programs are aimedat attracting investors and keeping thefederal aid pipeline flowing.” saidDeanne Loonin, Director of NCLC’sStudent Loan Borrower AssistanceProject and author of the report. “Butstudents are often harmed by such lending.”

“Each failed loan represents an individualwho cannot repay a debt and who maybe facing aggressive collection tacticsand damaged credit ratings,” Looninsaid. “Piling more debt on studentsalready buried in federal and thirdparty private loans is hardly in the best

NCLC Exposes Cynical Push BehindFor-Profit School Loans

Schools Fail to Deliver Quality Educations,More than Half of Loans Never Repaid

CEach failed loan represents anindividual who cannot repay adebt and who may be facingaggressive collection tactics anddamaged credit ratings.D E A N N E L O O N I N

interests of students, even if it serves acompany’s bottom line.”

To download a copy of the full report,visit the Student Loan BorrowersAssistance page at www.nclc.org

®