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
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
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
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
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
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
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
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
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
Yesterday consumer advocates held a press conference on the steps of the New Jersey statehouse to draw attention to a major problem: auto insurers’ use of unfair factors to discriminate against drivers and charge them higher premiums. As a result, people have wound up paying hundreds or even thousands of dollars more for auto insurance, … Continued
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
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
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
At this point, anyone who watches TV or streams shows is almost certainly familiar with insurance giant GEICO’s gregarious gecko. The affable mascot promises affordable insurance in a matter of minutes. But what the rogue reptile doesn’t tell you is that the company has a nasty habit of charging female drivers with clean driving records … Continued
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
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
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
Last week, a federal district court in California ruled that deceptive advertising claims could go forward against the makers of Vizzy Hard Seltzer. As CFA and the Center for Science in the Public Interest explained in a March 2021 letter to FDA, the Vizzy marketing campaign blatantly runs afoul of FDA rules. And as explained … Continued
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
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
Consumer Groups Urge FIO to Focus on Insurer’s Role in Addressing the Cost of Climate Change on Consumers CFA led several consumer and economic justice organizations in calling on the Federal Insurance Office (FIO) to take a leading role in addressing climate change and its impact on insurance costs for consumers and impacted communities, and … Continued
Housing aid is threatened in Washington as the Build Back Better Act reconciliation package moves toward a vote. The original $327 billion housing portion is by far the largest and most needed investment in affordable housing in decades. This aid must be protected from deep reductions if we are to address California’s and the nation’s housing … Continued
CFPB Must Regulate Fee-Based Earned Wage Access Products CFA has joined 95 consumer, labor, civil rights, legal services, faith, community, and other financial organizations urging the Consumer Financial Protection Bureau (CFPB) to reverse two actions regarding earned wage access (EWA) products that threaten to create dangerous loopholes in federal consumer protection and fair lending laws … Continued
Since the 1990s, major auto insurers have established telematics programs, which use consumer-generated driving data to calculate auto insurance premiums. These companies use information gathered from plug-in devices and mobile apps to track a variety of information. While these programs show some promise for promoting safe driving and more accurately calculating rates, they also pose … Continued
Long-Standing CFA Director of Investor Protection Moves on to SEC Barbara Roper, CFA’s long-standing Director of Investor Protection, has left the Federation after 35-years of service for a critical position at the U.S. Securities and Exchange Commission (SEC). “Barb Roper has likely been one of the most influential and effective protectors of the American investor … Continued