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Reining in Wall Street
STANDING UP FOR CONSUMERS IN THE FINANCIAL MARKETPLACE—For more than 20 years, Consumer Program Director Ed Mierzwinski has helped us stand up against big banks and credit card companies.
A Consumer Cop On the Financial Beat
You work hard for your money. You should be able to save, invest and generally manage your money without fear of being trapped, tricked or ripped off by the institutions you are trusting with your financial future. And from the 2008 economic collapse, we know how big of an impact those institutions can have on our economy when they play fast and loose with our money.
Since 2009, the solution has been clear. We need to have fair, clear, transparent and enforceable rules that protect consumers in the financial marketplace. Now, we know we can get there through the work of an agency that has those principles at the core of its mission — the Consumer Financial Protection Bureau.
The CFPB Gets the Job Done
Despite the fact that the CFPB is not widely known, we’ve already seen their financial oversight return nearly $12 billion to consumers … in just five years. The CFPB holds big banks, debt collectors, and lenders accountable. Here are a few examples of some of the cases the CFPB has taken on:
When American Honda Finance used discriminatory pricing to rip off African-American, Hispanic, and Asia/ Pacific Island borrowers who paid too much for car loans, the CFPB returned $24 million to these consumers.
The Department of Justice and 47 states joined the CFPB in a $216 million action against JP Morgan Chase Bank for illegal debt collection practices affecting over half a million Americans.
When it was discovered that Wells Fargo employees were opening unauthorized debit and credit accounts using their customer's information, the CFPB fined Wells Fargo $100 million for fraud.
The CFPB fined Equifax andTransUnion — two of the three largest credit reporting agencies — $5 million for selling inflated credit scores to consumers that were different from ones actually used by lenders and returned $17 million to those harmed by the deception.
But the CFPB doesn't just help consumers get their money back, it levels the financial playing field. The CFPB has several specialized departments for veterans, senior citizens, new homeowners, college students, and low-income consumers that seek to educate the public on how to stay safe and provide them with the tools they need to keep their finances secure.
Tell Your Senators: Stand Up For Consumers
Almost every day we hear about some new way of tricking, trapping and ripping off consumers. And despite the fact that tricks like these led directly to the 2008 financial collapse, some Wall Street banks are spending upwards of a million dollars every day to roll back the rules and the CFPB — the very agency that was created to keep them in check. Now, many legislators in Washington want to defund or destroy the CFPB.
Effective consumer protections aren't some sort of luxury we can't afford — they're hallmarks of a great country. As founders and leaders of the movement to create and protect the CFPB, we're working to make sure that our success not only sticks, but that we can build upon it.
Today, the U.S. House takes a key vote. HR2668, the Consumer Protection and Recovery Act, would restore the FTC's Section 13(b) authority to hold wrongdoers accountable and compensate consumer-victims harmed by their actions. The Supreme Court had recently ruled that the power, used for over 40 years to recover billions, was not clearly articulated in law.
Cover photo via Flickr by Mr. Blue MauMau, some rights reserved.
Next week, the full House of Representatives is expected to vote on HR2668, critical legislation to restore Federal Trade Commission authority to disgorge ill-gotten gains from corporate wrongdoers to use to compensate victims of the crime. This spring, the Supreme Court had held that the power was not clearly defined in law, even though courts had upheld the authority for many years, allowing the FTC to return billions of dollars to consumers.
-- Cover graphic of FTC Building via Flickr, by Boston Public Library, Some rights reserved.
Consumer complaints about peer-to-peer (P2P) payment apps such as PayPal, Venmo and Square have surged during the pandemic year. In April, there were 970 digital wallet complaints — almost double the previous monthly high from July 2020. PIRG Education Fund analyzed this growing problem for a new analysis of the Consumer Financial Protection Bureau’s (CFPB’s) Consumer Complaint Database.
Consumers increasingly are using digital peer-to-peer payment (P2P) apps for convenience. However, that convenience can quickly turn to inconvenience as the result of these apps’ often-confusing design, poor customer service and propensity for being used for scams and fraud. The number of written complaints to the Consumer Financial Protection Bureau (CFPB) about these apps and other financial tools in the “mobile or digital wallet” category has skyrocketed in recent years, reaching new heights in 2021.
Cover photo by grinvalds via IStock
We’re backing legislation to prevent the billionaire Sackler family from using the corporate bankruptcy of its company Purdue Pharma (makers of Oxycontin and other opioids) to avoid personal liability in ongoing lawsuits by some 24 state Attorneys General attempting to bring some justice to the families of the victims of the opioid crisis. Congress held a hearing Tuesday, June 8 at noon ET.
From terrorist financing to Medicare fraud, anonymous shell companies have shielded the identities of wrongdoers and served as financial getaway cars for hiding dirty money. But in a historic override of a presidential veto, Congress has outlawed anonymous shell companies in the United States.
Tools & Resources
Defend the CFPB
Tell your senators to oppose the “Financial CHOICE Act,” which would gut Wall Street reforms and destroy the Consumer Financial Protection Bureau as we know it.
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