John Edwards Advocates Debt Regulation

From John Edwards campaign website:

"The engine of our economy is not Washington, D.C., or Wall Street. It is the tens of millions of men and women in offices, factories, and fields across America who go to work every day. When we stand up for them, our middle class grows and our economy grows." – John Edwards

American families are working harder to get by. Despite living in the land of opportunity, most families' incomes have stagnated for the past generation. Meanwhile, George Bush's Washington has let corporate interests grow stronger than ever. The result is Two Americas, one struggling to get by and another that has everything it could want. As president, John Edwards will put our government and our economy back in line with our values. Today, he announced his plan to take on abusive lenders, create a new Family Savings and Credit Commission on the side of families who are investing and borrowing, and give families alternatives to high-cost debt.

The rest of John Edwards' proposal can be found here.

And Edwards is also seeking to have Americans reduce their debt.

New York, New York – In a speech today at Cooper Union, Senator John Edwards will unveil his plan to reduce the rising debt which is threatening our working and middle class families. Edwards will speak about the Two Americas that have grown further apart since the 2004 campaign—one America struggling to get by and build a better future and another that has everything it needs—and discuss how we can build One America that works for all Americans.

Edwards' plan will put our government and our economy back in line with our values and ensure economic security for families by taking on abusive lenders, creating a new Family Savings and Credit Commission on the side of families who are investing and borrowing, and giving families alternatives to high-cost debt.

From Elizabeth Warren:

Senator Edwards has put some hard-hitting proposals on the table. On credit cards, for example, he says he will work to end universal default, apply interest rate increases only prospectively, demand full disclosure of how long it will take a family to pay off a debt using minimum monthly payments, and restore ten day grace periods to late fees. He says he is ready to go after mortgage abuses and payday loans and initiate a plan to help families save for emergencies.

The centerpiece of the proposal is a Financial Product Safety Commission--renamed as a Family Savings and Credit Commission. This means more than outlawing any specific credit practice because, if done right, it would be the gift that keeps on giving--the reform that can provide consumer protection to match new products that the credit industry invents later on.

Talking about debt isn't sexy. It often takes time to explain where the abuses are and what responses would be effective. The credit industry can throw up a cloud of dust to obscure any public discussion. And let's face it--money is all on the side of the financial institutions. But Edwards is doing it anyway.

I'm glad one of the Presidential candidates is speaking out on the both the issue of American's penchant for debt and the abuses that it spawns.