A Message from Consumer Action

Consumer Action's MoneyWi$e educational materials have moved to our Managing Money Project website. Here you may view, download and order bulk copies of the MoneyWi$e materials. Please make a note of the Managing Money Project address— www.managing-money.org —and add it to your address book.

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

Students should know before they owe
If Congress and the Administration fail to act by July 1, 2013, the interest rate on new federal Stafford subsidized loans will double from 3.4% to 6.8%. Consumer Action and coalition advocates are concerned that the doubling of interest rates during a period of record-low market interest rates will lead to a significant increase in students mistakenly turning to costly and risky private loans to pay for higher education.

Payday loans often result in destructive cycle
Provisions are needed to address a central problem with payday lending: lenders’ failure to verify the borrower’s ability to repay the loan, and meet other expenses, without reborrowing, leading to a destructive cycle of repeat loans.

Consumers unfairly tarnished by medical bills
Consumer Action supports the Medical Debt Responsibility Act of 2013, which requires credit agencies to remove fully paid or settled medical debt from consumers' credit reports within 45 days.

Protecting investors from surrendering their rights
Investors continue to be harmed by one-sided clauses in contracts that force individuals to surrender their rights and resolve disputes with brokerage firms in arbitration. The SEC has the power to change that.

Protecting students from predatory school loans
Consumer Action and coalition organizations respond to the Consumer Financial Protection Bureau’s (CFPB) request for information regarding an initiative to promote student loan affordability. The CFPB should be aggressive and creative in seeking solutions for these borrowers that satisfy five essential criteria needed to protect students.

Payday loans are dangerous for consumers
Banks pitch payday loans as short-term borrowing that allows their customers to deal with a financial emergency, repay the loan, and move on. In fact, CRL's research shows that their triple-digit interest rate loans trap borrowers in a long-term cycle of repeat loans.

SAFE Lending protects consumers from risky practices
In a letter to Rep. Suzanne Bonamici, Consumer Action joins other advocates in supporting the SAFE Lending Act of 2013. This legislation seeks to protect consumers from abusive practices in payday lending.

Curbing dangerous Wall Street practices
“The Wall Street Trading and Speculators Tax Act” calls for a tax of 0.03 percent on trades of stocks, bonds, futures, options, swaps, credit default swaps and other complex financial instruments.

Regulating creditor-paid broker compensation protects consumers from risky loans
There has been a long history of mortgage brokers putting borrowers into more expensive and riskier loans in order to earn larger creditor payments. Such practices were particularly pronounced in the lead-up to the financial crisis, but remain a concern even after passage of Dodd Frank. Consumer Action and advocates address the question of how the Consumer Financial Protection Bureau (CFPB) should apply the revised points-and-fees definition to creditor-paid broker compensation regarding Qualified Mortgages (QM).

Comments to the CFPB opposing proposed relaxation in remittance rules
The Consumer Financial Protection Bureau (“CFPB”) has proposed three reductions in consumer protections for remittance senders. The proposed changes seriously, and erroneously, undermines the critical new protections for international remittances required by Congress in 2010 as part of the Dodd Frank Act.

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