Ed's Blog

Latest financial follies: "Bizarre" FHFA raising mortgage costs; CNBC Closing Bell overdraft debate

Thursday, September 27, 2012

Consumer Program Director

Latest follies: Professor Alan White explains the latest antics of the "bizarre" Federal Housing Finance Agency (FHFA)--its effort to punish states with successful foreclosure mediation programs by raising their mortgage costs. Meanwhile, I join Maria Bartiromo on CNBC's Closing Bell where I blame irresponsible bankers for an increase in overdraft fees.

Financial Reform

Supposed settlement between merchants and credit card networks lurching toward collapse

Wednesday, September 26, 2012

By | Ed Mierzwinski

Consumer Program Director

In July, news broke that merchants and the Visa and Mastercard payment networks had agreed to settle charges that "interchange" fees that the networks charged the merchants to accept credit and debit cards were unfair. Now, all the merchant associations involved have withdrawn from the deal because it wouldn't punish the banks, wouldn't reduce the fees that result in higher consumer prices and would bind merchants, including those not yet born, from any future lawsuits for unfair payment network practices.

Financial Reform

CFPB says 1 in 5 credit scores sold to consumers have "meaningful" differences from scores lenders use

Tuesday, September 25, 2012

By | Ed Mierzwinski

Consumer Program Director

The CFPB has confirmed what consumer advocates have been saying all along. Credit scores heavily marketed to consumers aren't the same as those used by lenders; at least 1 in 5 consumer scores have "meaningful" differences and that "score discrepancies may generate consumer harm." That's why we call them FAKO scores.

Financial Reform

Financial follies update: Discover Card pays deceptive marketing penalty

Monday, September 24, 2012

By | Ed Mierzwinski

Consumer Program Director

Discover Card has paid a $14 million civil penalty to the CFPB and FDIC, plus refunded over $200 million to ripped-off consumers, in the latest case involving useless, junk credit insurance and credit monitoring add-ons that consumers didn't buy, but pay for, to credit card bills. Read more for that and other weekend financial follies.