U.S. PIRG Latest Blog Posts

 | by
Ed Mierzwinski
Senior Director, Federal Consumer Program

Last week the nation's largest -- and to date least vulnerable to attack for stupid bank tricks  -- bank, JP Morgan Chase, lost two billion dollars in a very bad derivatives bet. Now Chase's until-now-Teflon-coated CEO Jamie Dimon faces increased scrutiny over his own and his firm's loud and arrogant opposition to the Volcker rule and exchange trading of derivatives -- two Dodd-Frank Wall Street reforms not yet implemented due to the obstinacy of bankers like him that might have prevented the loss. The episode also raises the question: Are the big banks too big to manage?

 | by
Ed Mierzwinski
Senior Director, Federal Consumer Program

Yesterday, U.S. PIRG joined U.S. Rep. Carolyn Maloney (NY) and other leading members in front of the U.S. Capitol to introduce the Overdraft Protection Act of 2012. Also this week, the Consumer Financial Protection Bureau described its proposal to simplify mortgage points and fees. Click read more to find about these and other important financial stories this week.

Medical devices can range from bandages and medical clamps to surgical mesh and hip replacements. The medical devices industry is a $100 billion-a-year industry and works aggressively with the FDA to push thousands of devices onto the market every year.

 | by
Ed Mierzwinski
Senior Director, Federal Consumer Program

You can pick your friends and even your bank but you are stuck with the credit bureaus.  Over the last twenty years the power of the big credit bureaus to act as gatekeepers to consumer success in life has grown immensely. Credit reports and credit scores generated from them are used to decide whether consumers can get a job, get car insurance, qualify to open a bank account, rent an apartment, use a debit card and, of course, whether they can obtain and how much they will pay for credit. The Columbus (OH) Dispatch has an excellent four-part series explaining that the credit bureaus make mistakes, lots of them, and ruin peoples' lives. There is hope, however, since the new Consumer Financial Protection Bureau has new tools to rein in the bureaus.

 | by
Ed Mierzwinski
Senior Director, Federal Consumer Program

The cover story of the June 2012 Consumer Reports is all about protecting your privacy on Facebook. Worth a read.

The research points to an increasing body of evidence that overuse of antibiotics in animals is the leading cause of drug resistance bacteria. Every year 18,000 people die from the antibiotic-resistant bug MRSA, and 80 percent of all antibiotics are used on animals, not humans.

 | by
Ed Mierzwinski
Senior Director, Federal Consumer Program

Over at the New York Times, you can join a debate on bank fees. Meanwhile, the CFPB has extended its comment period seeking your views on overdraft fees until June 29.

 | by
Ed Mierzwinski
Senior Director, Federal Consumer Program

Today the Consumer Financial Protection Bureau took an important first step toward protecting consumers from mandatory arbitration clauses, which are boilerplate sentences in bank account and other contracts that crush consumer legal rights. ... Meanwhile, the New York Times follows up on a lawsuit by the Minnesota Attorney General Lori Swanson against a medical debt collector that blocks and tackles consumers trying to get through hospital emergency room doors. But it gets better. That debt collector just happens to be owned by the same hedge fund that owned a supposedly neutral (not) forced arbitration mill known as NAF and favored by the big credit card companies.   ...  Also today, the World Privacy Forum announced updates to its helpful pages on medical identity theft.

 | by
Ed Mierzwinski
Senior Director, Federal Consumer Program

The Consumer Financial Protection Bureau (CFPB) has announced a "thought starter" beta test version of a tool to make it easier to calculate college debt burdens. "The goal is to give students and their families an easy-to-understand view of how their decisions today impact your debt burden after graduation."  Meanwhile, banks and an auto finance company have confirmed that the CFPB is investigating both the marketing of overdraft protection schemes and the practices of "buy here, pay here" auto dealers.

The American Petroleum Institute has a new public image campaign: http://whoownsbigoil.org. The purpose of this website, presumably, is to convince us that if we raise taxes on hugely profitable corporations we will only be hurting ourselves. Why? Because we are all shareholders of those corporations and when they are taxed we suffer.

While I am skeptical of API’s conclusions, it’s right to say we own the oil companies. In fact, shareholders across the country are demanding accountability and disclosure from the corporations that they rightfully own and the effort could be the key to slowing the flow of corporate money in the 2012 election.