Thursday, March 26, 2015

Ruling for the people

Two positive announcements have been made in favor of the people. First, was the closely-watched Young vs. UPS case brought in front of the Supreme Court. In this case, Peggy Young had been placed on restricted duty by her doctor. Her employer, UPS, decided that it could not make the accommodations Ms. Young needed. While two lower courts ruled against Young, the Supreme Court ruled that UPS was not accommodating enough, and therefore applied a test to be applied to determine whether pregnant women are being treated unfairly. The case has now been sent back to the lower court for review to determine whether UPS can pass this new test.

The second announcement was made by President Obama in Birmingham. The government will now start monitoring pay day lenders. The Consumer Financial Protection Bureau will now review these lenders' practices and regulate how and when they lend money to consumers, who are usually needy individuals not otherwise qualified for other loans. The CFPB plans to regulate this industry by requiring lenders to either verify the creditworthiness of their customers or to only offer loans their customers can pay back. This will ensure that consumers are not tied down to debt they can't afford. Known as predatory lending, payday lenders offer short term loans to consumers needing immediate access to cash. These loans come with a heavy interest rate that costs borrowers much more in fees. Since the needy and those without a formal education are prime targets, many sign up without understanding what the terms are.

Since the real estate bust of 2008, the government and its agencies have been working to protect consumers from needless debt. Some changes implemented include stricter lending restrictions, and a nation-wide campaign to educate the public on money matters. These new changes hold companies more accountable for their practices.

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