A new article by the Los Angeles Times discusses that, under President Trump appointee Jeff Sessions, the Justice Department will no longer set aside money from fraud settlements with corporate wrongdoers (such as Bank of America and Citigroup) to give to community groups and nonprofits.
It had previously been commonplace under the Obama administration to apportion funds paid by lending institutions as penalties to legal aid groups. These groups, in turn, would use the money to fund foreclosure defense for victims of the banking crisis. Under Sessions, these groups will no longer receive funding from settlements through lawsuits brought by the Justice Department.
This move is consistent with the conservative agenda pushed by Trump and his cabinet, and is likely to be detrimental to consumers across the nation. Policy revisions such as these highlight the importance of a strong consumer advocate who fights to enforce the full scope of consumer protection laws available. Katchko, Vitiello & Karikomi, PC remains proud to serve consumers throughout California in legal claims of all types including TCPA, FCRA, foreclosure, unfair business practices, unfair debt collection, among others.
By Tatyana Brenner, June 7, 2017