Reining in Wall Street Updates

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.

Media Hit | Financial Reform

Washington Post: Can’t fix error in your credit report? Call Consumer Financial Protection Bureau

"A much-cited study by the National Association of State Public Interest Research Groups found that almost 79 percent of all credit reports had some type of error."

(UPDATED (AGAIN)) Industry lobbyists, under cover of a "bi-partisan" center, have pre-launched their 2013 assault on financial reform. Meanwhile, as the FTC dings fake debt collectors, the CFPB heads to Seattle to presumably announce its authority to supervise or examine "larger" debt collectors. Read more for news of these and other financial follies.

This week the FTC ordered the massive credit bureau Equifax to disgorge $393,000 in profits and its customer, Direct Lending Source, to pay a $1.2 million civil penalty for selling lists of credit reports for illegal marketing purposes. Meanwhile, Senate Commerce Chairman Jay Rockefeller has announced his own investigation into the practice of unregulated data brokers, the close cousins of the credit bureaus that are already the subject of a bi-partisan House inquiry.

Last week a bi-partisan group of 41 state Attorneys General announced their joint opposition to misguided legislation to take both the CFPB and the states off the payday lender crime beat. Nevertheless, the payday lenders continue to invest in the political process.

new consumer group, Consumers Count, to fight for arbitration reform

By | Ed Mierzwinski
Consumer Program Director

Today, consumerscount.org launched as a website using "crowdsourcing" to help consumers band together to fight back when they have same complaint against the same company, but are limited by forced arbitration clauses and restrictions on class action rights from obtaining redress. At least until the CFPB bans forced arbitration, we need innovative ideas like consumerscount.

Media Hit | Financial Reform

JPMorgan Chase is sued in 2008 Bear Stearns mortgage case

CFPB, FDIC, Fed and OCC slap AmEx Credit Card for numerous violations

By | Ed Mierzwinski
Consumer Program Director

(UPDATED) Four federal financial regulators have announced an order for at least $85 million in restitution and $27.5 million in penalties alleging a variety of violations of equal credit opportunity, debt collection and credit reporting laws by the American Express credit card. From the CFPB: "at every stage of the consumer experience, from marketing to enrollment to payment to debt collection, American Express violated consumer protection laws."

Consumer Reports: Ticketmaster worst of 52 online shopping sites

By | Ed Mierzwinski
Consumer Program Director

We are shocked, shocked to find in our latest Consumer Reports magazine that Ticketmaster came in last in a Consumer Reports member survey asking for online retailer ratings. Could it be the fees or maybe the "deceptive" sales tactics?

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.

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