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credit cards
Risk-Based Pricing Is A Myth
Credit card companies need to penalize bad behavior with outrageous fees to keep credit affordable for the rest of us, right? Yeah, not so much. Credit Slips blogger and Georgetown Law Professor Adam Levitin argues that risk-based pricing is a myth that credit card companies exploit to escape well-deserved government regulation. More »
utilities
Energy Companies Win Permission To Steal $3 Billion From Customers
Westerners are stuck paying $3 billion to energy companies that colluded to gang-rape the free market. California, Washington, and Nevada were planning to return the money to customers, but the Supreme Court recently ruled that the industry manipulated the market, fair and square. More »
news from the swamp
In Early Termination Fee Hearing, FCC Chief Regurgitates Wireless Industry Proposals
The FCC held hearings today to discuss early termination fees (ETF) for wireless carriers, the ~$175 charged if a customer exits contract before the contract is up. FCC Chairman Kevin "Golden Child" Martin's proposals largely mirrored those offered by the carriers themselves last month. Here's what he said today:
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cellphones
Sprint Doesn't Charge US Government Early Termination Fees
Sprint doesn't charge Uncle Sam an early termination fee if he decides to get out of his cellphone contract early. Why? USAToday reports:
"The government will never, never accept such penalty amounts," then-Nextel marketing vice president Scott Wiener wrote in an e-mail in January 2004...A spokesman for Sprint-Nextel, John Taylor, said the company determined it could not assess the termination fees in its federal contract because it would have been against the law.
Why do consumers put up with these fees, but the government won't? Why is it illegal to charge the government ETFs, but not us? Perhaps Sprint thought that if they started charging the government ETFs, someone would get wise and question the fees, and anti-ETF legislation would be enacted...
Government relieved of cancelled cellphone fees [USAToday] (Thanks to Jason!)
survey says
81% Of Americans Hate Mandatory Binding Arbitration
According to science, even the President is more popular than mandatory binding arbitration. A recent poll shows that Americans hate everything about the extrajudicial resolution system, from its inescapable omnipresence, to its unappealable decisions that rob consumers of their day in court. The poll provides a refreshing contrast to a different study commissioned by the U.S. Chamber of Commerce, which found that Americans love mandatory binding arbitration more than pie. More »
whoops
IRS Sends 15,000 Stimulus Checks To The Wrong Bank Accounts
That economic stimulus check you were expecting may have accidentally stimulated your neighbor's bank account. Newsday is reporting that 15,000 checks tumbled astray thanks to an IRS "computer programming glitch." More »
news from the swamp
Get ready to spend nine hours on the tarmac without food or water. Senate Republicans yesterday shoved the Passenger's Bill of Rights into the chamber's overhead bin, killing off hope that the bill will pass before the elections. Even worse, the shot-down bill had transformed into a gleaming marvel of consumer protection.
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Republicans Have Killed The Passenger's Bill Of Rights. Long Live The Passenger's Bill Of Rights!
Get ready to spend nine hours on the tarmac without food or water. Senate Republicans yesterday shoved the Passenger's Bill of Rights into the chamber's overhead bin, killing off hope that the bill will pass before the elections. Even worse, the shot-down bill had transformed into a gleaming marvel of consumer protection.
More »
news from the swamp
Government Cracking Down On Anti-Consumer Credit Card Practices
In a surprising departure from the norm, the government is actually cracking down on some of the more egregious credit card practices. Usually they say that including more tiny print is sufficient enough consumer protection. Some things they're addressing: creating a mandatory minimum payment period, forbidding double-cycle billing, and prohibited APR from being raised on an outstanding balance. The proposals are simply that, proposals, at this point, with finalization expected by year's end, and we'll see what happens after all the exceptions and industry lobbying groups get factored in the equation. The specific anti-consumer credit card practices getting attacked, inside... More »
travel
The Passenger's Bill of Rights returns to the Congressional spotlight late tomorrow afternoon, but the bill isn't yet strong enough to deserve passage.
More »
Passenger's Bill Of Rights Taxis Toward Passage
The Passenger's Bill of Rights returns to the Congressional spotlight late tomorrow afternoon, but the bill isn't yet strong enough to deserve passage.
More »
news from the swamp
Senate Committee Votes To Rollback FCC's Media Consolidation Plan
Poor Kevin Martin. The Senate is well on its way towards killing his proposal to let newspapers get all freaky and consolidate with television and radio stations. Martin shouldn't be too surprised: this is exactly what happened the last time a FCC Chairman tried to ram media consolidation down our throats. More »
justice
Consumers Finally Allowed To Speak Out Against Abusive Credit Card Practices
Consumers were finally allowed this week to testify in favor of a proposed Credit Cardholders' Bill of Rights without being forced to sign waivers allowing their creditors to release private financial records to the public. The three cardholders who testified lambasted their credit card companies for penalizing them even though they abided by their cardholder agreements. More »
news from the swamp
New Treasury Department Plan: "Rehashed Industry Wish-List"
US PIRG's Ed Mierzwinski thinks the Treasury Department's recently announced plan for reforming financial regulation,
...may include some good ideas, but it is largely a re-hashed, unsubstantiated industry wish-list that seeks to eliminate state enforcement authority over insurance, securities and other financial products, without even guaranteeing strong consumer protection at the federal level.I gotta say, when I first read about Henry Paulson's plan, it sounded like they said, hey, we've got this pile of proposals here, let's go down to Kinkos, use their binding machine, and call it a day.
Statement: Treasury regulatory proposal— a Wall Street home run and a Main Street strike out [U.S. PIRG Consumer Blog]
PREVIOUSLY: Treasury Secretary Calls For Supercharged Fed, Streamlined Regulatory System
As the Federal Housing Authority is called upon to help stem the tide of foreclosures, its top official Alphonso R. Jackson has resigned amidst allegations that he gave cushy housing contracts in the Virgin Islands and New Orleans to his pals. [NYT]
justice
"Free iPod" Claims Cost Spammer $2.9 Million
The FTC slammed nuisance advertiser ValueClick with a record-breaking $2.9 million fine for littering the internet with deceptive ads for free iPods, PS3s, and plasma TVs. Instead of providing freebies, ValueClick tricked people into signing up for useless services and then failed to safeguard their personal information. More »
fairness
Credit Card Victims Muzzled, Ordered To Release Financial Histories Before Sharing Their Experiences
Four credit card victims were ordered to sign waivers allowing their creditors to release their private financial records to the public before they could testify before the House Financial Services Committee. The consumers had flown in from across the country to share their stories at a hearing on the Credit Card Bill of Rights, but credit card companies insisted—and Republicans and Democrats agreed—that it would only be fair to release documents like credit scores and a list of recent purchases in order to rebut the consumer's claims. "Fair is fair," Congressman Spencer Bauchus (R-AL) barked, as he defended the absurd request. Ultimately, the consumers didn't testify, but one invitee, Steven Autrey, released his prepared statement, which slams creditors for their abusive and predatory business practices. More »
product safety
Senate Votes For Safer Products, Approves Consumer Product Safety Commission Overhaul
The Senate finally voted last week to send the ailing Consumer Product Safety Commission desperately needed funds, staff, and powers. The overdue reform bill passed with bipartisan support on a 79-13 vote. More »
compassion
