Latest Posts

A House Committee Examined Diversity and Inclusion at America’s Largest Insurers. The Results Were Not Pretty.

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Over the past few years America’s largest insurance companies have stressed their commitment to racial justice, diversity, and inclusion. The industry has over $5.8 trillion in assets and often makes long-term investments in important sectors of the economy. However, numerous consumer advocates have pointed out that insurance has a long history of unfair discrimination, bias, … Continued

Opinion: Stop Subsidizing Wall Street Buying Up Homes

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No serious observer of today’s economy doubts that it is harder and harder for everyday folks to buy a home. This is especially true for first-time homebuyers across the country, in exurbs, Sunbelt suburbs, and neighborhoods in cities large and small. This escalating unaffordability affects the long-term opportunities of virtually everyone who doesn’t own a … Continued

CFAnews Update – August 31, 2022

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Pandemic Related Issues Continue to Impact 2021’s Top Ten Consumer Complaints, Auto Sales and Repairs Rank No. 1 for Sixth Year in a Row Earlier this month CFA released its annual Top Ten Consumer Complaints Survey Report, with auto sales and repairs ranking number one in the category of complaints made to local and state … Continued

The FTC’S Proposed Auto Dealer Rule (Part 4): Monthly Payments 

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For the first time in over a decade, the Federal Trade Commission (FTC) has proposed a rule directly addressing deceptive financing practices by auto dealers. The proposal contains a host of prohibited misrepresentations, required disclosures, and specific requirements pertaining to the sale of add-ons. The FTC explains at length the problems that consumers face when … Continued

The FTC’s Proposed Auto Dealer Rule (Part 3): Advertising and Pricing

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For the first time in over a decade, the Federal Trade Commission (FTC) has proposed a rule directly addressing deceptive financing practices by auto dealers. The proposal contains a host of prohibited misrepresentations, required disclosures, and specific requirements pertaining to the sale of add-ons. The FTC explains at length the problems that consumers face when … Continued

The FTC’s Proposed Auto Dealer Rule (Part 2): Add-On Products

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For the first time in over a decade, the Federal Trade Commission (FTC) has proposed a rule directly addressing deceptive financing practices by auto dealers. The proposal contains a host of prohibited misrepresentations, required disclosures, and specific requirements pertaining to the sale of add-ons. The FTC explains at length the problems that consumers face when … Continued

Consumers are In the Dark About Reasons for Their Premium Increases, Washington State Is Proposing to Change That

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In recent months, insurance companies have been increasing rates for consumers across the country, claiming that current circumstances give them no choice. But in Washington State, insurance regulators are trying to shed some light on these price hikes by issuing a rule requiring insurance companies to give people transparent information about their premiums and the … Continued

CFAnews Update – July 29, 2022

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Congress Must Act to Strengthen Airline Consumer Protection Regulations The Consumer Federation of America (CFA) joined a coalition of consumer and passengers’ rights groups urging Congress to expand and strengthen airline consumer protection regulations in the upcoming 2023 Federal Aviation Administration Reauthorization process. The airline industry received over $50 billion of relief during the COVID-19 … Continued

The FTC’s Proposed Auto Dealer Rule (Part 1): Yo-Yo Financing

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For the first time in over a decade, the Federal Trade Commission (FTC) has proposed a rule directly addressing unfair and deceptive financing practices by auto dealers. The proposal contains a host of prohibited misrepresentations, required disclosures, and specific requirements pertaining to the sale of add-on products. The FTC explains at length the problems that … Continued

CFAnews Update – June 29, 2022

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SEC Should Finalize its Proposed Climate Disclosure Rule Without Undue Delay CFA submitted comments to the Securities and Exchange Commission (SEC) in support of its proposal to enhance and standardize climate-related disclosures for investors, urging speedy finalization of the proposed amendments to the SEC’s disclosure rules. The proposed rule is urgently needed because current voluntary … Continued

Digital Wallets – Peer-to-Peer “P2P” Payment Systems

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Mobile payment apps and peer-to-peer payment systems have become prolific among American consumers, with 4 in 5 Americans using these apps, which include Venmo, Zelle, CashApp, and Paypal. What started as a way for consumers to send money instantaneously has grown into a method to make online purchases, pay bills, and more. As mobile and … Continued

How Racial Discrimination in Homeowners Insurance Contributes to Systemic Racism and Redlining

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Over the last few years, policymakers and advocates have become increasingly aware of the role that housing discrimination plays in systemic racism and unfair discrimination, denying people stable homes and economic opportunity. But one area of housing discrimination has remained extremely understudied: homeowners insurance. While it may not be as flashy as other aspects of … Continued

CFAnews Update – May 26, 2022

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The Baby Formula Crisis is a Food Safety Crisis: An In-Depth Look As U.S. military airlifts come in with baby formula from Europe, Thomas Gremillion, CFA’s Director of Food Policy, offered an in-depth look into the causes of the nationwide baby formula shortage and what steps must be taken to avoid the issue in the … Continued

First and Foremost, the Infant Formula Crisis is a Food Safety Crisis

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As the U.S. military airlifts baby formula into the country from Europe, and harried parents continue to encounter bare shelves, policymakers are understandably asking how we got into this mess. Corporate consolidation, regulatory barriers to entry, even import tariffs, all may deserve some reconsideration, but let’s not forget that a food safety failure lies at … Continued

CFAnews Update – April 28, 2022

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Groups Urge State Insurance Departments to Investigate Racial Bias in Insurance Claims Handling After a recent New York Times investigation detailed extensive allegations of discrimination against Black policyholders in both its insurance claims handling and its anti-fraud efforts, CFA and the Center for Economic Justice (CEJ) wrote to all state Insurance Commissioners, urging them to investigate racial bias in … Continued

While Consumers Struggled During the COVID-19 Pandemic, Auto Insurance CEOs Earned Massive Bonuses

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Over the past several decades, income inequality has greatly increased as consumers struggle and corporate executives make massive profits. During the COVID-19 pandemic this trend continued and one industry saw especially large gains-auto insurance companies. A review of auto insurer executive compensation found that in 2020 and 2021 CEOs took home hundreds of millions of … Continued

CFAnews Update – March 28, 2022

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CFA Adds Key Staff for Investor and Consumer Protection Roles This month the Federation announced the appointments of Micah Hauptman as the new Director of Investor Protection and Erin Witte as the new Director of Consumer Protection. Hauptman formerly served as Counsel to Securities and Exchange Commission Commissioner Caroline Crenshaw, and prior to that role, … Continued

CFAnews Update – February 28, 2022

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Long-Serving CFA Director of Insurance Retires After serving 27-years with the Federation, J. Robert “Bob” Hunter, CFA’s Director of Insurance, retired earlier this month. Prior to joining CFA, Hunter created and ran the National Insurance Consumer Organization (NICO) for 13-years, had leading roles in both state and federal government, first as the U.S. Federal Insurance … Continued

Billionaire’s Twitter Comments on Telematics Show Consumer Interest Is Not a Priority for Him

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Telematics programs, where auto insurance companies rely on in-car tracking devices to gather information about your driving habits and use that information to calculate premiums, hold promise but also dangers for consumers. Therefore, regulators need to implement safeguards and exercise adequate oversight to ensure that consumers aren’t exploited. A recent case aroused the ire of … Continued

CFAnews Update – January 28, 2022

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Parents Warned About Leachco Infant Loungers Product safety advocates are urging consumers to immediately stop using several Leachco infant loungers following an announcement from the U.S. Consumer Product Safety Commission (CPSC) about two infant deaths related to the products. “This is a product we’ve been urging the CPSC to address for years,” said Rachel Weintraub, … Continued

CFAnews Update – December 16, 2021

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Acting Comptroller Hsu Calls for Overdraft Fee Reform at CFA’s Financial Services Conference At CFA’s 34th Annual Financial Services the Acting Comptroller of the Currency Michael Hsu explained how overdraft practices contribute to income and wealth inequality and outlined what banks can do to reform overdraft programs. The Consumer Financial Protection Bureau (CFPB) released a … Continued

After Tort Reform Failure, Time for Real Insurance Reform

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It’s no secret that auto insurance is expensive in Louisiana, to the point that it is very expensive for many families. The average auto insurance premium is $2,225 per year—56% more than the national average. And so far, auto insurance premiums have climbed 2% this year. Since Louisiana requires all drivers to have auto insurance, … Continued