We support reforms to the financial marketplace to curb bad practices by banks and lenders.
DefendYourDollars.org got a great email from Professor Warren today announcing the launch of ConsumerFinance.gov Their first order of business? To hear from consumers.
Here is her message:
In July 2010, Congress created a new federal agency to protect American consumers. The Consumer Financial Protection Bureau will be a cop on the beat, working to make consumer financial markets work better for American families. As the first new consumer agency of the 21st century, we can communicate directly with the people we serve. Today, that work is just beginning. We’re moving quickly—building a terrific team, finding office space, and unpacking a lot of boxes.
Things aren’t all in place yet, but we don’t want to delay reaching out to the people who care about this agency. We’re excited to announce the launch of our website, ConsumerFinance.gov, for one very important reason – to start a conversation with you. With the launch of our site, we will be Open for Suggestions.
We hope you are eager to learn what this new agency will do and how it might affect you. In turn, we are definitely eager to hear what you have to say. Starting today, you can use the Internet to send us your best suggestions and questions for the bureau:
If you have a video camera, record a YouTube video and upload it as a response to our welcome video at http://www.youtube.com/CFPB.
If you like Twitter, tweet your suggestion using the hashtag #CFPB. You can also follow us at http://www.twitter.com/CFPB.
If you are on Facebook, you can “Like” us at http://www.facebook.com/CFPB, and post your suggestion on our wall.
If you want to use our website, you can post suggestions at http://www.consumerfinance.gov/openforsuggestions.
In the coming days and weeks, staff who are building this new agency will record direct video responses to some of the most frequent questions and most interesting suggestions. You’ll see the faces and meet the people who come to work every day to make a difference for the American people. We look forward to getting to know a little more about you, too. More is coming, so be sure to check back at http://www.consumerfinance.gov/openforsuggestions throughout the coming weeks.
Open for Suggestions is just one way that we plan to keep our conversation going with you. Be funny! Be creative! Most of all, be real about what matters to you. This is a great chance to go into your community with a camera, laptop, or mobile phone, or just a pen and paper, and help others participate. Involve your friends, your family, your colleagues and classmates, your faith community, and anyone you know who might be counting on this agency for information and help. If you aren’t ready with a specific comment, that’s OK. Just let us know you are there—and stay in touch.
We can’t do it without you.
Thanks,
Elizabeth Warren
1. It would be helpful for me in my role as a financial educator — to have available visual schematics of how typical electronic transactions occur — and then show how and where extra fees can be added — and where there are places where abuses can occur. With the federal government moving to complete electronic disbursement of federal and state benefits — and the development of products targeting low income and poorly educated and elderly — it would be helpful to have simple visual graphs.
2. The use of graphics would also be important as federal and state begin to insist on direct deposit / prepaid cards / debit cards for disbursement of tax returns.
Here’s a little trap I hadn’t heard of before, though I’m sure it is in the fine print somewhere. I was leaving Costa Rica on Feb. 5, 2011 and paid their “airport/tourism tax” of $26.50 at then current exchange rates with my Bank of America Upromise Mastercard – only for convenience. A “cash advance fee” of $10 was unexpectedly added to the transaction three days later (along with the customary 3% they usually charge retailers on sales and services)for a total charge $34.35) which I expected.
The unexpected additional $10 brought the total amout of the transaction to $44.35, a whopping – to my mind – nearly – 50% in service and interest charges. When I called to inquire about this with their Customer Service, the woman, who was very nice, informed me that they added this fee if the “vendor,” in this case the Costa Rican airport authority, processed the transaction as a “cash advance” instead of a credit transaction.
Of course they can, I suppose, but without warning the consumer of the additional charge?
And while the young woman was willing to credit my account back as a one time courtesy, based on my excellent record with them, to avoid the charge in the future I was advised I would have to avoid the use of the card with this vendor. But the credit did not appear until February 11th.
As it happens, my wife had to leave Costa Rica to renew her tourist visa, and took a flight to Panama on the 10th returning on February 13th. She too, was charged; without notification. Thus, by the time that I had resolved my issue with Upromise, I was charged again, because I had not alerted her to the effect of using the “credit” card with the authorities considering a “cash” advance, thus triggering the same fee I had originally complained about.
I realize this is small potatoes in the mix of things you will have to regulate. However I believe that it is incumbent on someone either the card company or the vendor to alert the consumer as to exactly what is being “purchased” – in this case the exit tax plus the customary service charge plus the “cash advance” fee.
Thank you for your attention – we will henceforth avoid the use of a credit card for the payment of such transactions, but I thought you should know about this, to my mind, “trap.” Peace, and good luck with the impossible task set before you. Your voice was one of the few Cassandras speaking about the gouging of the American consumer in the lead up to the credit bubble and financial crisis of 2008. Thank you.
Wow. Simply wow. This is not a “small thing”, and should be borderline – if not outright – illegal, and subject to penalties on the company itself from some oversight committee. No matter the valid reason given for charging your card, there is no excuse whatsoever for doing it without informing you first.