Reining in Wall Street

STANDING UP FOR CONSUMERS IN THE FINANCIAL MARKETPLACE—For more than 20 years, Consumer Program Director Ed Mierzwinski has helped us stand up against big banks and credit card companies.

A Consumer Cop On the Financial Beat

You work hard for your money. You should be able to save, invest and manage your money without fear of being trapped, tricked or ripped off by the institutions you are trusting with your financial future. 

That’s why we need strong consumer protections on Wall Street. And from the 2008 economic collapse, we know how big of an impact those institutions can have on our economy when they play fast and loose with our money. It made it clear: Americans need a watchdog agency on Wall Street, devoted to creating and enforcing fair, clear and transparent rules to protect consumers. 

So in 2010, we helped create the Consumer Financial Protection Bureau to be our consumer cop on the financial beat.

The CFPB Gets the Job Done

Despite the fact that the CFPB is not widely known, they’ve been hugely successful at working for consumers, returning nearly $12 billion to more than 29 million people who were ripped off by companies that broke the law … in just five years. 

The CFPB holds big banks, debt collectors, and lenders accountable. Here are a few examples of some of the cases the CFPB has taken on to protect consumers:


When American Honda Finance used discriminatory pricing to rip off African-American, Hispanic, and Asia/ Pacific Island borrowers who paid too much for car loans, the CFPB returned $24 million to these consumers.


The Department of Justice and 47 states joined the CFPB in a $216 million action against JP Morgan Chase Bank for illegal debt collection practices affecting over half a million Americans.


When it was discovered that Wells Fargo employees were opening unauthorized debit and credit accounts using their customer's information, the CFPB fined Wells Fargo $100 million for fraud.


The CFPB fined Equifax andTransUnion — two of the three largest credit reporting agencies — $5 million for selling inflated credit scores to consumers that were different from ones actually used by lenders and returned $17 million to those harmed by the deception.

In addition, the Consumer Bureau has helped level the financial playing field, educating veterans, senior citizens, new homeowners, college students, and low-income consumers on how to keep their finances secure.

The Consumer Bureau's success should be earning it applause in Washington. Yet instead of cheering on the Consumer Bureau, the Trump administration and some members of Congress are pushing to weaken or even get rid of it. 

Tell Your Senators: Stand Up For Consumers

We can keep our consumer cop on the financial beat — but only if we can convince enough senators to stand up and be counted as Consumer Champions, and stop any bad bills that try to roll back or eliminate consumer protections.

Even with the Consumer Bureau on the job, many Americans are still at risk of reckless financial practices that threaten their homes, their retirement savings, and their overall well-being. That’s why we don’t simply need the CFPB to exist: We need to make it even better, by strengthening commonsense consumer protections. 

In the wake of the Great Recession, we helped spearhead the creation of the Consumer Bureau. Now, we need your help to stand up for consumer protection once again, and defend the CFPB from those who would weaken or eliminate it.

Issue updates

Blog Post | Financial Reform

House Committee Launches Trojan Horse Assault On State Privacy Laws | Ed Mierzwinski

This afternoon (Tuesday, 8 December), the U.S. House Financial Services Committee launches a massive attack on state privacy laws. Hidden inside a seemingly modest proposal to establish federal data breach notice requirements is a Trojan Horse provision designed to to take state consumer cops off the privacy beat, completely and forever. That's wrong, because the states have always been key first responders and leaders on privacy threats that Congress has ignored, from credit report accuracy and identity theft to data breaches and do-not-call lists.

> Keep Reading
Blog Post | Financial Reform

Privacy, We've Got Tips and Ideas For You, Congress and Regulators, Too | Ed Mierzwinski

Problems with privacy and data security are all over the news these days. We've got you covered, from releasing a new report and consumer tips on the security freeze today to testifying to Congress (last week) on payment card security and speaking on a panel at the FTC tomorrow on Internet lead generation (what's that?). Oh, and we're waiting for answers to our questions to the CFPB about the credit bureau Experian joining the ranks of the breached. We've been busy as we explain in this "roundup" blog entry.

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Blog Post | Financial Reform

The More I Hear About OPM Data Breach, The Less I Know, Except This: It's Bad | Ed Mierzwinski

Was it 4 million, 14 million or 18 million records breached (how many times) (likely) by Chinese hackers? Whose fault was it? The USOPM director says no one's. Really? Perhaps the worst data breach ever raises lots of questions, but I haven't heard any good answers. Federal employees, their families, their friends and their neighbors -- because all of them could be victims -- deserve better answers, just as they deserve better service than USOPM's credit monitoring provider is giving them.

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News Release | U.S. PIRG | Democracy, Financial Reform

Citi shareholders gathered in NY demand lobbying disclosure

 

NEW YORK, NY - Citigroup shareholders gathered today in New York City for their annual meeting and outrage over Citi’s role in the financial crisis was still palpable in the room.  A major topic of interest was a shareholder proposal that would require the company to disclose its lobbying expenditures to its investors, one of over 100 resolutions on political activity filed this season.

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Blog Post | Financial Reform

As NY Brings Credit Bureaus To Heel, CFPB Arbitration Study Paves Way Toward New Protections | Ed Mierzwinski

Two big consumer stories so far this week offer hope to consumers victimized by credit bureau errors and, more generally, by an inability to take credit bureaus, credit card companies, banks or payday lenders to court when harmed. On Monday, New York's Attorney General Eric Schneiderman signed a groundbreaking agreement with the Big Three credit bureaus, Equifax, Trans Union and Experian. Then today, the CFPB released a report finding that consumer legal rights are infringed by small-print forced arbitration clauses in credit card and other contracts.  The CFPB will hold a webcast public hearing at 11am Eastern time today (Tuesday) to discuss the report's findings and next steps.

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Media Hit | Financial Reform

LA Times: Richard Cordray Appointment 'Turns Lights On' at Consumer Bureau

"Congress wanted the bureau to protect consumers no matter where they shopped for financial products," said Ed Mierzwinski, consumer program director at the U.S. Public Interest Research Group. "With a director, the public can now have confidence the consumer bureau is ready, willing and able to investigate their financial problems."

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News Release | U.S. PIRG Education Fund | Financial Reform

New Report Highlights Reasons for New Consumer Protections

The report outlines predatory financial practices that hurt consumers and led to the collapse the economy, costing us eight million jobs, millions of foreclosed homes and trillions of dollars in lost home and retirement values.

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News Release | U.S. PIRG | Financial Reform

U.S. PIRG Disappointed Senate Blocks Confirmation of Rich Cordray To Head CFPB, Says “Constituents can ask opponents why.”

Today, despite strong support from diverse organizations and leaders seeking to protect consumers, veterans, students and older Americans from financial tricks and traps, the Senate failed to confirm the well-qualified nominee, Rich Cordray, to head the new Consumer Financial Protection Bureau.

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News Release | U.S. PIRG | Financial Reform

U.S. PIRG Ratchets Up Support for Confirmation of Rich Cordray to Head CFPB

With a Senate vote on confirmation of former Ohio Attorney General Rich Cordray to head the new Consumer Financial Protection Bureau expected tomorrow, U.S. PIRG ratcheted up its efforts to urge Senators to support confirmation. The group announced that it is urging its members in every state to contact Senators and running radio ads in several states.

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News Release | U.S. PIRG | Financial Reform

Changes Gut Consumer Protections, Protect Wall Street

The House Financial Services Committee simultaneously approved an industry-friendly rollback of consumer financial and product safety protections. The approved bill eliminates the independence of the new Consumer Financial Protection Bureau (CFPB) while also preventing the Consumer Product Safety Commission's (CPSC) new public information database from informing the public about product hazards.

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Blog Post | Financial Reform

Do better Facebook friends mean a better credit score? | Ed Mierzwinski

"Big Data" has created a new front in the war on privacy. Should a prospective employer be able to "friend" you or use your Facebook password to vet you?  When, if ever, should colleges, employers and lenders be able to look at your Facebook or other social network pages to see if your friends make you a better bet to enroll, hire or grant a loan to than someone with loser friends?

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Blog Post | Financial Reform

Free Cookies-Strings Attached | Ed Mierzwinski

The price consumers pay to access most online content is the tracking of their every click on the World Wide Web by data miners and ad networks. Consumer and privacy advocates are seeking to address such online tracking through Do-Not-Track regulation, which could be considered in the U.S. Senate Commerce Committee soon.

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Blog Post | Financial Reform

Court rejects First Amendment attack on credit bureau regulation and other financial follies | Ed Mierzwinski

In an important case joined by the government, a U.S. district judge has rejected the latest misguided industry attack on the constitutionality of regulation of credit bureaus. Meanwhile, the CFPB has released its first annual report on credit card deals with colleges. Here's a weekly summary of the latest financial follies.

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Blog Post | Financial Reform

Supreme Court hears case on textbook prices with implications for all secondary markets (Amazon, eBay) | Ed Mierzwinski

Yesterday the Supreme Court heard an important case concerning whether publishers can restrict owners of books from reselling their used copies, raising massive implications not only for the prices of textbooks but also for the very existence of important secondary markets like Amazon and eBay.  U.S. PIRG joined others in urging the Supreme Court to reverse a lower court's view that consumers lose longstanding rights to resell copies of copyrighted books, if the books were made outside the US.

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Blog Post | Financial Reform

Tips for fixing credit report errors yourself (don't ever use a credit repair doctor) | Ed Mierzwinski

Fox Business reporter Kelly Dilworth has a detailed "how-to" called "10 surefire steps to get errors off your credit reports." Don't go to a credit repair doctor, don't read a bunch of wacky advice on self-help websites, don't do any of that, Do what she says.

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DEFEND THE CFPB

Tell your representative to oppose the “Financial CHOICE Act,” which would gut Wall Street reforms and destroy the Consumer Financial Protection Bureau as we know it.

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