Mayor Andy Berke launches local Consumer Financial Protection Planning efforts
Chattanooga Mayor Andy Berke announced today the launch of local consumer financial protection planning efforts in partnership with the national nonprofit organization the Cities for Financial Empowerment Fund (CFE Fund) and the Annie E. Casey Foundation.
The City will begin an education campaign to raise consumer awareness of scams and predatory practices of businesses use, especially as many residents are experiencing financial distress from the COVID-19 pandemic.
“Even before COVID-19 impacted our community Chattanoogans were turning to predatory lenders,” Mayor Berke said. “Now, more than ever, as many are looking for solutions to help with financial stress it’s essential we educate our residents to the scams and fraudulent activity out there, and provide them with ways to protect themselves.”
In the coming months, the City will roll out a multi-pronged approach that supports broader consumer financial protection capabilities aligning directly with the City's Economic Mobility plan, prioritizing payday lending alternatives and supporting family financial education programs.
The City of Chattanooga joins Detroit, MI; Philadelphia, PA; Shelby County, TN; and St. Paul, MN as the second cohort of the CFE Fund’s Local Consumer Financial Protection Initiative, which supports local governments across the country in developing and enhancing their capacity to offer their residents consumer financial protection and empowerment. The City of Chattanooga will work with the CFE Fund to plan for the establishment of a local consumer protection agency, which will work to augment resident financial empowerment by protecting consumer assets through licensing, regulation, enforcement, mediation, and outreach and education.
The City has received a $10,000 grant, paired with a nine-month technical assistance engagement partnership, to begin planning for a local consumer financial protection initiative. This process will include a structured approach to identifying critical local consumer issues, convening key stakeholders, and surveying the legal landscape that will inform the development of an actionable strategic plan.
“It is an unfortunate reality that predatory actors look to take advantage of vulnerable people during times of crisis like the current COVID-19 pandemic. Examples of scams, frauds, deceptive advertising, and price gouging are already occurring across the country,” said Jonathan Mintz, CFE Fund President and CEO, “Local governments have a critical role to play in protecting residents’ hard-earned assets, and we are thrilled to partner with Mayor Berke on this important work.”
In 2017, with the support of both the Annie E. Casey Foundation and the W.K. Kellogg Foundation, the CFE Fund selected 4 cities through the Local Consumer Financial Protection Initiative to build out their own consumer financial protection offices within their mayors’ administrations. These cities (Albuquerque, NM; Denver, CO; Nashville, TN; and Salt Lake City, UT) have each successfully launched their efforts, developing consumer complaint infrastructure, identifying enforcement priorities, and pursuing legislative reforms.