Given the relentless news about data breaches, it’s not surprising that members of Congress are concerned and feel that federal legislation is needed. Unfortunately, H.R. 2205, which will be considered by the House Financial Services Committee today, would not help Americans much – in fact, it would actually weaken existing protections and make it harder … Continued
Consumers Expect to Spend Slightly Less During the Holidays This Year Consumers report slightly lower intended holiday spending in 2015 than they reported in 2014, according to the 16th annual CFA and Credit Union National Association (CUNA) holiday spending survey. In both years, the same percentage (10 percent) said they would spend more; however, more … Continued
New Efforts Emerge to Derail DOL Conflict of Interest Rule New efforts have emerged in recent weeks to derail the Department of Labor’s proposed conflict of interest rule, which would require all financial professionals to put their customers’ interests first when providing retirement investment advice. Although just weeks ago House Democrats mounted a strong stand … Continued
Today, U.S. PIRG released their 30th annual Trouble in Toyland report. The report highlights that America’s store shelves still contain dangerous toys. Parents should avoid buying toys that contain toxic chemicals, including chromium and phthalates, as well as toys that pose a choking hazard, are loud enough to damage a child’s ears, or contain powerful magnets … Continued
Kudos to the Federal Trade Commission (FTC) for making it harder for fraudulent telemarketers to steal consumers’ money. The agency announced that it is amending its Telemarketing Sales Rule (TSR) to ban certain forms of payment that don’t offer consumers adequate protection if they’ve been scammed. These payment methods – remotely created checks and payment … Continued
With so many stories about identity theft in the news these days, it’s clear that we need to do more to prevent the misuse of people’s personal information and assist the victims. Government documents or benefits fraud, the most common type of identity theft problem reported to the Federal Trade Commission (FTC) last year, is … Continued
Anti-Safety Highway Bill Heading to President Congress is working to finalize a highway reauthorization bill by November 20, 2015, when the current highway authorization bill expires. The House passed their version of the DRIVE Act (H.R. 22) last Thursday and needs to work out the differences with the Senate’s version to get it to the … Continued
The Bipartisan Budget Act of 2015 that has now been signed into law took a swipe at our rights not to receive robocalls and texts to our cell phones without our explicit consent. Section 301 exempts callers who are trying to collect debts that are owed to or guaranteed by the federal government. This giant … Continued
U.S. PIRG recently released a new report that explains how placing security freezes on one’s credit reports is the only way to prevent new account identity theft. It’s a proactive step that’s easy and inexpensive to take. Why bother? Based on identity theft complaints to the Federal Trade Commission last year, consumers’ stolen personal information … Continued
House Prepares to Vote on Anti-Investor ‘Retail Investor Protection Act’ As the House of Representatives prepares to vote this week on legislation that would impede the ability of regulators to strengthen protections for investors and retirement savers who turn to financial professionals for investment advice, CFA wrote to members urging them to vote no on … Continued
CFPB Considers Limiting Class Action Bans in Consumer Contracts The Consumer Financial Protection Bureau (CFPB) announced last week that it is considering proposing rules that would prohibit consumer financial companies from including arbitration clauses in customer contracts that prevent consumers from participating in class action lawsuits. Although the proposal falls short of the total ban … Continued
It’s hard to imagine life without our telephones. They’re a vital link to our friends and relatives, doctors and other service providers, government agencies and emergency personnel, shops and restaurants. Mobile phones have become ubiquitous; last year it was reported that 90 percent of American adults owned a cell phone and 64 percent had smartphones. … Continued
Today’s decision by the European Court of Justice invalidating the “Safe Harbor” agreement between the US and EU should have come as no surprise. Privacy advocates on both sides of the Atlantic have long argued that this self-regulatory program, which enables US companies to transfer Europeans’ personal information to servers in the US, does not … Continued
Another day, another disheartening news story about a data breach, this time compromising T-Mobile customers’ personal information, including Social Security numbers, addresses, and birthdates. Apparently hackers stole the information from Experian, the credit bureau that T-Mobile uses to check consumers’ credit records when they apply for phone plans or financing to buy phones. It’s a … Continued
When the Federal Trade Commission recently sued Roca Labs, Inc., it wasn’t only because the company allegedly made bogus claims for its weight-loss products. The FTC also asserted that it was unfair for Roca to include “gag clauses” in its terms of service that forbade customers from saying anything bad about the company or its … Continued
FIO Urged to Adopt Strong Auto Insurance Affordability Standard Responding to a request for information from the Federal Insurance Office (FIO), more than 50 consumer, civil rights, and community groups, including CFA, joined in urging the FIO to establish a strong affordability standard for low- and moderate-income Americans. “In more than one out of every … Continued
Fannie Mae last week announced a significant new product, HomeReadyTM, designed to expand the company’s ability to provide financing for low and moderate income borrowers. HomeReady builds on the company’s historical family of low-down payment mortgage products with flexible underwriting features, starting with Community Home BuyersTM in 1993 and continuing through the My Community Mortgage® product. … Continued
Bill to Protect Children from E-Cigarettes Advances in House Legislation to protect children from e-cigarettes was approved by the House Subcommittee on Commerce, Manufacturing and Trade last month. H.R. 3242, the Child Nicotine Poisoning Prevention Act of 2015, directs the Consumer Product Safety Commission (CPSC) to promulgate a rule requiring liquid nicotine containers to be … Continued
CFA and Consumer Reports Issue Studies Calling Auto Insurer Pricing Practices Unfair Last week, both CFA and Consumer Reports issued separate studies on how auto insurers price their insurance policies. Both reports criticized these insurers for relying more heavily on socio-economic factors than on driving ability in this pricing. Both organizations then jointly submitted the … Continued
Proposed Rule Issued for Big Truck Fuel Economy and Emissions The U.S. Environmental Protection Agency (EPA) and the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) announced new draft rules earlier this month for heavy-duty vehicle fuel economy and emissions. The program would significantly reduce carbon emissions and improve fuel efficiency of heavy-duty vehicles. … Continued
House Votes to Repeal COOL, Senate Urged to Wait The House of Representatives passed legislation that would repeal country-of-origin labeling (COOL) for beef, pork, and chicken. The Country of Origin Labeling Amendments Act of 2015 was adopted on a vote of 300-131. “The House voted to deny American consumers basic information about where their food … Continued
Auto Insurers Fail to Reward Low Mileage Drivers Large auto insurers frequently fail to reward drivers with low mileage despite a strong relationship between low mileage and insurance claims, according to CFA research released last week. In fact, three of the five largest insurers often give low-mileage drivers no break at all. “The failure of … Continued
House Committee Votes to Preserve Protections for Military Borrowers In an important victory for servicemembers, Military Lending Act supporters succeeded in beating back an attempt to delay new rules to protect military service members from 400 percent payday loans and other forms of high-cost credit. The new rules are expected to be released by the … Continued
DOL Proposes Sweeping New Protections for Retirement Savers Much needed new protections for retirement savers moved one step closer to reality last week, when the Department of Labor (DOL) released for public comment a proposal to require all financial professionals to put the interests of their customers first when providing retirement investment advice. CFA hailed … Continued
CFPB Finds Pre-dispute, Forced Arbitration Harms Consumers A new report from the Consumer Financial Protection Bureau finds that pre-dispute forced arbitration clauses are extremely prevalent in virtually all consumer finance markets and are detrimental to consumers’ ability to seek legal relief when they are wronged. Moreover, the vast majority of consumers are not aware that … Continued