About NAAG
Inaugural Speech
Roy Cooper, President, National Association of Attorneys General and North Carolina Attorney General
June 17, 2010
If you hang out at a NAAG meeting long enough, you’ll hear a current or former Attorney General tell you it’s the best job they ever had. There are many reasons for this. Most of us are the top cops in our state. We get to put violent criminals in jail, push new crime fighting technology and go on meth lab raids. As guardians for consumers, we get to put money back in the pockets of people who’ve been ripped off. As the legal representative of state agencies, we deal with most any issue you can think of that affects the every-day lives of people in our respective states. Every day it’s something new, and every day you can make a difference.
In this job, I’ve met fascinating people who’ve made me laugh, who’ve made me think and who have inspired me to act. In this job, the actions we take can help real people with real problems. Shirley Bledsoe, for example.
Shirley Bledsoe who works with special needs children got behind on her mortgage payment in this tough economy and hired a company to modify her loan. She thought the company was okay because she heard its ad on Christian radio. It was a foreclosure scam and we got her money back. Tom wasn’t so lucky. Tom paid $1,500 for foreclosure assistance. The company did nothing and his home went into foreclosure. Although we were able to get his money back, he lost his house. Tom said if he’d used the money at the time to make his payment instead of being scammed, he may have saved his home.
Granville Jones was looking for help paying off $96,000 in debts which included hospital bills. A company told him they would handle everything and that he could reduce what he owed by half. After 6 months, this company had taken more than $10,000 from him, but none of the money had gone to pay down his debts. We went to court to stop this company and get him a refund.
Roger Brown had a checking account with a bank located in a department store. He had been laid off. He bought a submarine sandwich for $10.20 with his debit card and had sufficient funds in the account. However, a $9.95 monthly maintenance fee created an overdraft and he was not notified of the account shortage until numerous fees had been added on. He tried to close his account but the bank refused and the daily fees continued to accumulate. When his first unemployment check was directly deposited into his account, the bank deducted all of the fees which totaled $315. That was an expensive submarine sandwich. We got him a partial refund. Unfortunately, the list goes on.
As Attorneys General, we see consumers and businesses getting ripped off by financial fraud. Crimes related to foreclosure and debt relief, identity theft and mortgage fraud, not only hurt consumers, but legitimate businesses as well. We also see the sad results of unfair interest rates, fees and predatory lending.
Our country has experienced a significant financial crisis and all of us are working to put the pieces back together. As we do this, we must remember working Americans who are struggling to make ends meet and who are often victimized by criminals as well as unfair financial practices.
That’s why my Presidential Initiative will focus on hardworking Americans who deserve a level, fair and transparent financial playing field.
The theme will be, “America’s Financial Recovery: Protecting Consumers as We Rebuild.” Our goal will be first, to find ways to detect and prevent financial fraud and scams that sink people further into debt and hurt businesses, second, to make financial products and services more fair to consumers, and third, to help prevent future financial calamities like we just experienced.
On the first issue, we will share education, legislation and enforcement strategies to fight financial fraud like foreclosure and debt relief scams. Already, many of our states have passed laws making it illegal to take money upfront for foreclosure and debt relief. This gives us the ability to go to court and shut them down without having to prove they weren’t helping. We have asked the Federal Trade Commission to adopt a similar rule that would apply nationally. New FTC Commissioner Julie Brill is familiar with this. Furthermore, in a meeting with a number of Attorneys General, U. S. Attorney General Eric Holder informed us that he has instructed U. S. Attorneys across the country to work with us to prosecute foreclosure and debt relief scams. We will coordinate with federal authorities on criminal and civil actions to fight these scams as well as mortgage fraud, identity theft and other financial fraud which hurt businesses and consumers.
Second, we will explore ways Attorneys General can help consumers get access to fair financial products and services. It is likely that Congress will soon create the Consumer Protection Financial Agency. It appears that Attorneys General will continue to play a pivotal role in consumer protection activities and part of my Initiative will plan for coordination among our offices and this new agency.
And third, we will continue to look at the underlying causes of the financial meltdown our country just experienced to see what role Attorneys General can play in avoiding a future crisis.
Most of us agree about the need to fight financial fraud and scams. There will be more disagreement about the fairness of financial products and services and addressing the root causes of the financial crisis.
Therefore, we must make sure we look at these issues comprehensively. Eleanor Roosevelt once said, “Justice cannot be for one side alone, but must be for both.” A robust financial services industry is good for jobs and economic growth, and I know that there are financial executives in North Carolina and in other states who will work with us as we help with the economic recovery across the country. In the spring of next year, I plan to host a Presidential Initiative Conference in Charlotte, N. C. which boasts the second largest banking industry in the country behind New York. At this conference we will hear from banks, the financial service industry, consumer advocates and government officials as we explore ideas that protect everyday wage earners and homeowners in America as well as spur economic growth. I look forward to hearing your thoughts and receiving your help as we put this Presidential Initiative Conference together. Charlotte has everything from the Rodin Exhibit at the Mint Museum to the NASCAR Hall of Fame.
I am indeed honored to become President of NAAG and to follow Jon Bruning of Nebraska. He has kept our focus on children, he’s run tight meetings (which I will emulate), he has worked tirelessly on tobacco issues surrounding the Master Settlement Agreement and he has a great staff. He deserves a hand. I also look forward to working with President-Elect Rob McKenna as he prepares for his year as President. He and his staff have hosted a great meeting and he deserves a hand.
Next, I want to thank Jim McPherson and his staff. NAAG has faced dramatic cuts during the last year with a reduction of 30% of its positions. They have all stepped up and we have not seen the level of service decrease at all.
I would also like to thank my staff. With due deference to all of the fine staff here, I will put my staff up against any state government staff in the country. (Introduce staff).
In addition, my family could not be here because of numerous obligations and conflicts. However, Kristin, Hilary, Natalie and Claire will all be at the next meeting.
Finally, we are putting together committees and responsibilities for next year. I’ve talked with some of you and I look forward to hearing from others. Thanks again for the honor of serving as President. Let’s have a great year.
