Listen, we know what it’s like to keep shoving money into a slot machine, mesmerized by the blinking lights and the possibility that this time will be different, this time will bring riches beyond imagining! But should you lose, don’t act like a mad baby and maim the casino’s machine. That’s just immature. [More]
My Employer Will Only Pay Me By Prepaid Debit Card. Is That OK?
By June 6, 2012
Everyone (except consumer advocates like us) seems to love prepaid debit cards. You can get student loan fundage on them, unemployment benefits, and even federal and state tax refunds. And now they’re handling your paycheck. Christopher just took a job as a pizza delivery driver for a major chain, and he has only one option for receiving his pay (other than tips): a prepaid debit card. He doesn’t like it. [More]
The Fax Of Shame: How It Really Feels To Lose Your Home
By May 2, 2012
C. and her husband are a young couple who moved into their first house just a few years ago. Unable to manage their mortgage payments, they asked their lender, PNC Mortgage, for help. The bank offered them a monthly payment $500 higher than the mortgage they couldn’t pay in the first place. Their house has sat empty and on the real estate market since January, waiting for a buyer to come along for a short sale. One did, and the nightmare is almost over. Or it would be, if PNC would just stop calling the couple and any relative whose phone number they can find, almost every day. [More]
Turns Out That Forcing Customers Into Arbitration Is Not Good For Consumers
By April 25, 2012
A year ago this week, the U.S. Supreme Court issued a landmark ruling in the AT&T Mobility v. Concepcion case. It decided that a company could force customers into arbitration — and effectively pre-empt any class-action lawsuits — by including a tiny clause in their contracts. At the time, AT&T had the gall to claim that this was all for the benefit of you, the consumer, but a new study proves what you probably already guessed: AT&T was full of it. [More]
FTC: Payday Lender Can't Avoid Prosecution By Claiming Tribal Affiliation
By April 3, 2012
A Colorado payday loan operation that allegedly piled on undisclosed and inflated fees — and which attempted to avoid prosecution by claiming affiliation with Native American tribes — has been sued by the Federal Trade Commission, which says the sovereign immunity laws don’t prevent investigations by the feds. [More]
Who Knew Wearing Orange Shirts To Work Is A Fireable Offense?
By March 20, 2012
Down in Florida, they love their oranges. Not just the citrus fruit, but at one law firm, 14 employees loved the color enough to all wear it to work one day. Too bad management had a bee in its bonnet over the color-coordinating and fired them all for donning orange en masse. [More]
Court Halts Intimidating Debt Collector Calls From People Posing As Cops
By February 21, 2012
The Federal Trade Commission announced today that a U.S. district court has stopped an operation that allegedly collected millions of dollars in payday loan debts that consumers did not actually owe. [More]
Man Accidentally Plays Wrong Lottery Game And Wins $14.3 Million
By January 23, 2012
Winning the lottery is all about luck — or is it about accidentally buying a ticket thinking it’s one game instead of another? Either way, one Wisconsin man won the $14.3 million Megabucks pot, but was oblivious to his windfall for three days. [More]
Businesses That Rip Off Poor People
By January 9, 2012
Some businesses thrive on the misfortune of others, making unfavorable deals with the poor and desperate to improve their bottom lines. While it’s tough to discern the intentions and ethics of management, it’s easy to identify the results of their reckless practices. [More]
A Dozen Scams Certain To Spoil Your Holiday Spirit
By December 15, 2011
With Christmas just 10 days away and Hanukkah even sooner, it’s no wonder that most of us are feeling harried and distracted. But don’t take leave of your senses. Thieves and scammers celebrate the season by taking advantage of people who don’t have time to give things the usual scrutiny. [More]
Senate Blocks Vote On Confirmation Of Richard Cordray As Consumer Financial Protection Bureau Director
By December 8, 2011
A vote today in the Senate over whether or not to confirm Richard Cordray as the new director of the Consumer Financial Protection Bureau has been blocked with a filibuster by opponents of the current structure of the bureau. [More]
Senate Expected To Vote On Consumer Financial Protection Bureau Director Tomorrow
By December 7, 2011
It feels like it was ages ago when former Ohio Attorney General Richard Cordray (not to be confused with his doppelganger NBC page Kenneth Ellen Parcell) was announced as the White House’s nominee for director of the recently formed Consumer Financial Protection Bureau. Now it’s almost time to cue some sort of dramatic music as the Senate is expected to thumbs-up-or-down the nomination on Thursday. [More]
Private Equity Bets Big Bucks On "Buy Here Pay Here" Dealerships
By November 1, 2011
In the second of a three-part series on “Buy Here Pay Here” dealerships, used car lots that target subprime borrowers with easy credit and triple the national average interest rates, the Los Angeles Times looks at how private equity firms have flocked towards the growing industry, lured by 38% margins. [More]
TCF Bank Adds New $28 Daily Overdrawn Balance Fee
By October 14, 2011
Reader Jeff used to intentionally overdraw his bank account in order to have enough money to feed his family and gas the car. At $35 a pop, that’s a pretty cheap loan. But now that’s not going to be a viable option because TCF Bank has started to assess him a daily fee of $28 if his account is overdrawn by $5 or more. [More]
Cordray One Step Closer To Becoming CFPB Head
By October 6, 2011
Nearly three months after President Obama nominated Richard Cordray as director of the new Consumer Financial Protection Bureau, the former Ohio Attorney General has gotten one step closer to filling that position after the Senate Banking Committee voted to approve the nomination. [More]
FTC Gets Some PayDay Lenders To Halt Garnishing Wages Without Court Order
By September 14, 2011
A group of nine South Dakota-based payday lenders — doing business under at least 17 different names, but all sharing a common senior executive — has agreed to stop garnishing wages from customers with delinquent accounts, at least until there is some sort of conclusion to the Federal Trade Commission lawsuit against them. [More]
Consumer Reports' Excellence Award: Tell Us Which Small Non-Profit Should Be Awarded $25,000!
By August 24, 2011
Five small non-profits are competing for $25,000 as part of the first Consumer Reports Excellence in Consumer Advocacy Award, and we need your help choosing the winner. [More]
Trick Fraudulent Debt Collectors With Google Voice
By March 7, 2011
Steve, name changed for his protection, found himself bedeviled by fraudulent debt collectors. They bought his personal information from an online payday loan site where he had applied for a loan but never actually took it out. They called him constantly, threatening to send him to jail and take him to court. In this situation, the Fair Debt Collection Practices Act didn’t matter. They were overseas scammers who didn’t care about American law, bulling people into paying debts they never incurred. The only way to stop them was by changing all his phone numbers. That’s where using Google Voice came in. [More]
