Consumer Protection

(UPDATED): The CFPB, which turns one on Saturday, is coming of age with the announcement of its first enforcement action, against Capital One Bank, for deceptive marketing of junky payment protection and credit monitoring products to cardholders. Capital One will pay over $200 million in direct restitution and civil penalties.

CFPB Issues Rule Regulating Big Credit Bureaus

By | Ed Mierzwinski
Consumer Program Director

Today, as expected, the CFPB announced its first "larger participants" rule, giving itself the authority to supervise, or look inside the mysterious "black box" operations, of the biggest credit bureaus. This is a really big deal for consumers who've suffered through the mistakes made by these gatekeepers to financial and employment opportunity.

A reported $5 billion settlement over anti-competitive practices by Visa and Mastercard that raise prices for all consumers at the store and at the pump will allow merchants to surcharge credit card transactions in some circumstances. But the convenience stores oppose the settlement as too weak to protect them.

The CFPB travels to Detroit Monday, July 16th, for a field hearing on credit reporting. It seems like a fine opportunity to announce a final anticipated rule giving it full authority -"guns, lots of guns" - to look inside the black box operations of Trans Union, Equifax and Experian-- the Big Three self-anointed and little-scrutinized gatekeepers to financial and employment opportunity despite their long record of mistakes and failure to give consumers a chance to fix them.

A Bloomberg columnist is reporting that the securities industry's self-regulator FINRA has fired 3 arbitrators who ruled against BofA's Merrill Lynch in favor of a presumably grievously ripped-off investor (they rarely win). It's time for both the SEC, for investors, and the CFPB, for consumers, to step up and use their Wall Street Reform and Consumer Protection Act powers to ban forced arbitration.

On the Internet, Everyone Knows If You're A Big Dog, Or Just A Dog

By | Ed Mierzwinski
Consumer Program Director

A Wall Street Journal story today has everyone talking about how Internet sites use profiles and cookies to offer different customers different offers, or the same product for different prices. On the Internet today, everybody knows whether you're a big dog, or just a dog.

NYTimes Editorial: Debit Cards on Campus

According to a study by the United States Public Interest Research Group Education Fund, an advocacy organization, nearly 900 colleges and universities have card relationships with banks or other financial institutions, some of which manage student aid disbursements by turning student IDs into debit cards.

CFPB launches searchable credit card complaint database today

By | Ed Mierzwinski
Consumer Program Director

Joining agencies that regulate cars, toys and other consumer products, medical devices and airline service, today the Consumer Financial Protection Bureau rolls out a searchable online complaint database. The CFPB's new tool, for credit cards to start,  comes in the nick of time to help consumers who the LA Times warns may be tricked into automatically signing up for an over-priced junky Citibank add-on monitoring service.

What Will JP Morgan Chase Chief Jamie Dimon Testify To Today?

By | Ed Mierzwinski
Consumer Program Director

(UPDATED) At 10am, the U.S. Senate Banking Committee will ask JP Morgan Chase chief Jamie Dimon questions perhaps including "What did you know and when did you know it?" and "Did your $3 billion in gambling losses violate the Volcker rule against betting you rown (and the depositors') money?" We will be there, tweeting from @edmpirg.

(POST UPDATED): The data broker Spokeo has agreed to pay penalties of $800,000 over multiple violations of the Fair Credit Reporting and FTC Acts. It's important as the first FTC case over the "sale of Internet and social media data in the employment screening context."

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