The ruling sent shivers down the spines of the SEC and Commodity Futures Trading Commission, and has them bracing for more court challenges as they strain to complete well over 100 rules called for in Dodd-Frank that was enacted last year.

“I was afraid of this all along,” said Jill Sommers, a Republican commissioner at the CFTC. “The SEC had a rule that was challenged on grounds that I think there are concerns in our rules about, and I feel like we could equally have the same kind of challenges.”

Scott O’Malia, the other Republican CFTC commissioner, says he is going to call for a briefing with agency staff to review the ruling and assess the agency’s vulnerabilities.

“I just don’t want to make any mistakes that set us back,” O’Malia said. “It’s a very serious concern.”

“As more Americans start using mobile phones to make purchases, we need to make sure that consumer protections keep pace with all the new technological advances,” Michelle Jun, senior attorney for Consumers Union’s Defend Your Dollars campaign said in a statement.  “Consumers shouldn’t have to worry that a lost or stolen mobile phone or billing error could turn into a costly financial headache.”

And nobody really has the answer to the question, not even the industry’s trade association.

A spokesman for ATT Wireless said the company would not comment on the report and suggested the answer ought to come from the industry’s trade association, the CTIA. The CTIA responded by saying an answer ought to come from the carriers. Sprint said it had nothing to say about it right now. Of the largest carriers, only Verizon Wireless had something to say. Verizon would not address the report specifically, but a spokesman did discuss the issue.

“I believe he is a credible, honest man and I look forward to supporting him,” Shelby told Reuters in an interview about Martin Gruenberg.

Weak consumer regulation was the norm, but banks love the status quo

… “The CFPB will be the first regulator in American history that didn’t answer to the banks, but to their customers.”

Mortgage abuses were rampant

… “Somebody fell asleep on their watch in Washington like Rip Van Winkle. A consumer financial bureau would keep an eye on an industry that’s operated in darkness for too long.”

Credit abuses are rampant

“… My one errant transaction could lock in a short-term profit for the bank that would easily rival the near-20 percent margins from industries like pharmaceuticals, Internet services and network equipment. I’m all for profits, but I can get a better deal from Louis the loan shark. A consumer bureau might be able to rein in these practices.”

Junk fees are abundant

… “The CFPB already is working to simplify this morass of incomprehensible forms and even wants your opinion on new proposed versions.”

Making simple math simple again

… “Do you know what a LIBOR index is and “lifetime maximum rates?” The banks don’t want you to know this because this is how much your monthly payment can climb based on a variable index. If the index goes up, so does your payment.”

“Failing to disclose fees is essentially stealing money from consumers,” Attorney General Pam Bondi said in a statement.

And here’s the Prism blog over at Reuters giving their effusive account of the situation.  Spoiler alert: Someone’s got a crush.

More U.S. consumers have fallen behind on loan payments than ever before, and the problem may worsen as millions more find themselves out of a job, a study released Thursday shows.

According to the American Bankers Association, which represents most large U.S. banks and credit card companies, the percentage of consumer loans at least 30 days late rose to a seasonally adjusted 3.22 percent in the October-to-December period from 2.9 percent in the prior quarter.

The ABA said the fourth-quarter rate was the highest since it began tracking the data in 1974, with delinquencies rising in nearly every category. It said these credit trends are unlikely to improve before 2010.

Consumers are missing payments on mortgages, credit cards, and auto loans, Adams said, adding that Americans may be growing more reluctant to take on new debt and more willing to save.

 

Economists have long warned that U.S. households were taking on unsustainable levels of debt, pushing the savings rate near zero. But although increasing savings and reducing debt can contribute to consumers’ financial health, if Americans further tighten their purse strings now it could worsen the recession.

“While it’s become fashionable to blame payday lenders for all of society’s ills, it is preposterous and irresponsible to blame a $300 loan for the nation’s mortgage crisis.”

There are plenty of good, fact-based explanations of why this nation is facing a tough economic road ahead.  Here is an excellent one from the NewsHour on PBS that uses an interesting technique to explain the mortgage crisis.  But no one (not even the Center for Responsible Lending–before this Reuters story that is) has asserted that payday loans have anything to do with the mortgage meltdown.