Reform school

While much about the U.S. economy will change between the time I write this column and when you read it, the position of Consumers Union will not.

Whatever happens with the markets, financial firms, and inconceivable amounts of cash that Congress will dole out, CU believes that certain steps are essential to protecting Americans caught in the chaos. These fundamentals should have been in place from the start:

Vigorous oversight
Strong new rules that establish a proactive, transparent regulatory culture, as well as dogged enforcement, are critical to avoiding a repeat of the abuses and mistakes that have put the country in such a tenuous position. We’re not promoting needless regulation; we’re calling for astute analysis, increased assessment of risk, and reasonable regulatory oversight.

Protection from foreclosure
Mortgages should be designed to keep people in their homes, not to encourage lenders to profit from the displacement of families and the disintegration of neighborhoods. Bankruptcy courts should have the authority to alter mortgage terms, and the industry must be restructured so that lenders focus on providing sound loans rather than snatching market share.

Credit-card reform
Credit-card issuers should not be allowed to gouge cash-strapped consumers with excessive rates and fees. And even when the terms are changed, consumers should receive ample notice so that they can pay off the balance or shop for a card with better terms.

None of this is new to Consumers Union. In 1936 our charter pledged "to give inform­ation and assistance on all matters relating to the expenditure of earnings and the family income." For just such advice, see Your Money: What to Do Now.