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Coalition Efforts

Consumer Action is working on these important issues along with other organizations. If you would like to know more about these issues, please see "More Information" at the end of each article.
 

Postings

Consumer advocates come out against forced arbitration clauses
Following a report released by the Consumer Financial Protection Bureau (CFPB) showing that tens of millions of Americans have clauses in their credit card, checking account, student loan and wireless phone contracts that take away their rights to sue those companies in a court of law, Consumer Action joined over 100 advocates in urging the CFPB to address the use of forced arbitration clauses by prohibiting their use in consumer-held contracts.

The CFPB crack-down on prepaid cards is a win for consumers
The prepaid card market is exploding and can be found in popular national retailers like Walmart and Target. These cards are often marketed as a more affordable alternative to bank accounts and debit cards, especially for low income consumers. What consumers may not know is companies known for their predatory financial services have been quick to jump into the industry, largely due to the lack of regulations and standardization requirements. The Consumer Financial Protection Bureau (CFPB) is trying to stop them.

College students targeted for predatory prepaid cards
The relationship between colleges and credit card issuers comes under increased scrutiny as legislators, advocates and the Consumer Financial Protection Agency (CFPB) doubt the benefits of linking student ID cards to a student’s credit or checking accounts. These cards, often used to distribute student aid funds, incorporate abusive practices and come loaded with fees.

The SEC’s controversial block of Nobel Laureate Joseph Stiglitz
Economist Joseph Stiglitz, who previously called for a tax on high-frequency trading, was blocked from a Securities Exchange Commission (SEC) panel that’s set to advise regulators on issues facing U.S. equity markets.

Attempts to roll back the CFPB's authority to protect consumers
Here we go again—those who have opposed increasing consumer protections and the creation of the Consumer Financial Protection Bureau (CFPB), are at it once more.

Many companies leave limited-English-speaking consumers in the dark
Families with limited-English-proficiency (LEP) are continually targeted for business, but abandoned when they run into trouble. Whether or not consumers speak English should not strip them of their consumer rights.

Concerns raised about sale of Corinthian Colleges
A coalition of 46 student, consumer, veterans and civil rights groups wrote to the Obama Administration and U.S. Department of Education to oppose the proposed sale of 56 Corinthian Colleges' campuses to ECMC, a nonprofit student loan guarantee agency.

In favor of expanding the CFPB's reach in the auto industry
In light of its recent supervision report detailing auto-lending discrimination uncovered at banks, the Consumer Financial Protection Bureau (CFPB) is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.

In favor of improving mortgage data to prevent housing discrimination
The Consumer Financial Protection Bureau’s (CFPB) is proposing to improve the quality and type of Home Mortgage Disclosure Act (HMDA) data collected, as required by the Dodd-Frank Act. HMDA data is used to evaluate mortgage lending activity, particularly to understand the dynamics of the mortgage market for underserved borrowers and communities of color. Consumer Action joins coalition advocates in supporting the CFPB's efforts to improve HDMA data collection and urges the Bureau to expand on its collection fields and take further steps to improve the quality of the data collected.

Consumer protections weakened after repealing Reg. AA
Banking regulatory agencies repealed Regulation AA in August. Reg. AA bans banks from unfair and deceptive acts as described in the FTC Credit Practices Rule (like pyramiding late fees, taking security interests in household goods, etc.). In its stead, the agencies jointly issued the Interagency Guidance regarding Unfair or Deceptive Credit Practices (the Guidance), which clarifies to banks and financial service providers that the credit practices described in these former regulations are still not permissible. Consumer Action joined coalition advocates in seeking a stronger rule that mirrors and improves upon the protections originally included in Regulation AA.

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