Financial Reform

Report | U.S. PIRG Education Fund and Frontier Group | Financial Reform

Big Banks, Big Overdraft Fees

Overdraft fees are a major source of consumer pain, since they are borne disproportionately by Americans with few financial resources. Through the first three quarters of 2016, 626 large banks reported collecting $8.4 billion in revenue from overdraft and NSF fees, an increase of 3.6 percent over the same period in 2015. American consumers should look to the Consumer Financial Protection Bureau (CFPB), which has already enforced overdraft regulations and returned millions of dollars to consumers, to take new action to prevent unfair overdraft fees. Here is our latest report, based on new data reported to the government by big banks.

News Release | U.S. PIRG | Financial Reform

Overdrafts continue to hit students hard on campus

Today, the Consumer Financial Protection Bureau (CFPB) released a report shining a spotlight on contracts between banks and colleges to promote debit cards on campus.  Students continue to get hit hard with overdraft fees attached to their campus bank accounts. According to the report, nearly one in ten consumers in the population with student accounts incurred 10 or more  overdrafts per year, paying, on average, $196 in overdraft fees alone. Below is a detailed analysis by US. PIRG's Chris Lindstrom, who championed the protections that the CFPB is reporting on. This report is one more example of why we need a strong CFPB. 

News Release | U.S. PIRG | Financial Reform

Consumers Should Demand Security Freezes After Massive Yahoo Breach

In the wake of the recently-announced Yahoo data breach -- apparently the largest security breach ever, exposing the personal information of 500 million consumers -- PIRG offers consumer tips, demands that Yahoo provide free security freezes to affected consumers who could be at risk of "phishing" schemes to commit fraud on existing accounts or open new fraudulent accounts.  We also ask: Why did it take Yahoo two years to notify the public?

NYT Points Out Overdraft Fees Still A Problem

By | Ed Mierzwinski
Senior Director, Federal Consumer Program

A major article in today's New York Times, "Overdraft Practices Continue to Gut Bank Accounts and Haunt Customers," points out that while 2010 reforms put in place by the pre-CFPB regulators have helped, there's still work to be done to protect consumers from unfair overdraft practices. While years ago banks used "bounced check" fees to deter what was then seen as a negative behavior, more recently they have encouraged overdrafts by offering "standard overdraft protection" as if it is a feature, not a bug. They've made billions.

Digital Data and Consumer Protection: Ensuring a Fair and Equitable Financial Marketplace

Below find links to reports and other work on our Data and Consumer Protection project. Americans face new challenges and opportunities to their financial security as our economy is transformed by the convergence of digital media with “Big Data” technologies. Our use of mobile phones, social media, “apps,” and other online tools have created new ways for us to spend, save and borrow money. Powerful forces are at work, however, that can undermine a consumer’s ability to make the best choices and may place those already financially at risk even more vulnerable.

News Release | U.S. PIRG | Democracy, Financial Reform

Citi shareholders gathered in NY demand lobbying disclosure

 

NEW YORK, NY - Citigroup shareholders gathered today in New York City for their annual meeting and outrage over Citi’s role in the financial crisis was still palpable in the room.  A major topic of interest was a shareholder proposal that would require the company to disclose its lobbying expenditures to its investors, one of over 100 resolutions on political activity filed this season.

Media Hit | Financial Reform

Credit Bureaus’ Deal to Improve Accuracy ‘Huge’ for Consumers

(Bloomberg) -- Buying homes, getting jobs and borrowing money will be easier after an agreement by the three biggest U.S. consumer credit reporting services with New York.[...] “It’s a sea change in the way the credit bureaus treat complaints,” said [U.S. PIRG's Ed] Mierzwinski. “The credit bureaus have been run by computers for years now. They’re going to have to hire more people and actually verify that what a creditor said is true.”

Anthem Customers and Others: Some Advice On Steps To Take After Data Breach

By | Ed Mierzwinski
Senior Director, Federal Consumer Program

UPDATED (9 Feb.) Retail store data breaches make a mess, but an easy one to clean up and the few consumers who become fraud victims are quickly made whole. The Anthem hackers, on the other hand, reportedly obtained a mother lode of information that could be used to commit a variety of serious frauds, including obtaining your tax refund. Read our tips here. Here's the first: Don't click on any emails claiming to be from Anthem; some may be malicious.

On Memorial Day, Thank Servicemembers and Veterans and Thank the CFPB for Protecting Them

By | Ed Mierzwinski
Senior Director, Federal Consumer Program

On this Memorial Day, celebrate servicemembers and veterans. It's important that the CFPB has their backs, since predatory lenders are after their wallets.  As I often say, the idea of the CFPB needs no defense, only more defenders.

CFPB complaints help recover $90 million for servicemembers

By | Ed Mierzwinski
Senior Director, Federal Consumer Program

Yesterday, the U.S. Departments of Justice and Education and the FDIC slammed student loan company Sallie Mae and a spinoff, ordering over $6 million in penalties and $90 million in compensation to servicemembers and veterans. Complaints to the CFPB's public database helped build the case. As the CFPB's director said in an important speech last week: "Each consumer’s voice counts and the chorus of many voices can change practices at these large financial companies."

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