National Consumer Protection Week

Proclamation 7405 of February 5, 2001

National Consumer Protection Week

By the President of the United States of America

A Proclamation

More Americans than ever are realizing the American
dream of homeownership. At the same time, an increasing
number of homeowners are living the nightmare of
overwhelming debt and home foreclosure resulting from
fraudulent lending practices. Subprime lending--the
extension of high-rate, high-fee loans to people
considered to be high-risk borrowers--has grown
substantially in recent years. Unfortunately,
fraudulent and abusive lending practices have also
grown.

High-cost lending is not limited to home mortgages.
Check cashing outlets, payday loan companies, rent-to-
own stores, subprime auto lenders, and pawn shops are
additional examples of high-cost lenders.

While it is crucial that as many consumers as possible
have access to credit, their access must not be
hindered by unlawful lending practices. Federal law
enforcement agencies have increased their enforcement
activities to stop lenders who engage in fraudulent and
abusive lending practices. In addition, Federal
agencies and consumer groups have implemented
aggressive education campaigns to help consumers learn
how to safeguard the equity in their homes.

Consumers can protect themselves from loan fraud by
taking some commonsense precautions, including
comparison shopping among several lenders, negotiating,
and resisting, indeed refusing to yield to, pressure to
sign any loan papers they don't understand. Nonprofit
credit and housing counseling services are available to
help consumers manage their credit and make decisions
about loans and loan terms.

To help protect consumers, the Federal Trade
Commission, the National Association of Consumer Agency
Administrators, the U.S. Postal Service, the U.S.
Postal Inspection Service, the National Association of
Attorneys General, the Department of Justice, and
private consumer organizations have joined forces to
inform Americans about their rights as borrowers, about
the responsibilities of lenders, and about protecting
their assets. This information is available in writing,
by telephone, and online.

I encourage all Americans to take advantage of this
opportunity to learn more about how to protect
themselves against fraudulent and abusive lending
practices. By becoming wise and well-informed
consumers, we can reduce the incidence of fraud and
deception in the marketplace.

NOW, THEREFORE, I, GEORGE W. BUSH, President of the
United States of America, by virtue of the authority
vested in me by the Constitution and the laws of the
United States, do hereby proclaim February 5 through
February 10, 2001, as National Consumer Protection
Week. I call upon government officials, industry
leaders, consumer advocates, the media, and the
American people to participate in programs helping
citizens to be responsible and wise consumers.

IN WITNESS WHEREOF, I have hereunto set my hand this
fifth day of February, in the year of our Lord two
thousand one, and of the Independence of the United
States of America the two hundred and twenty-fifth.

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