We support reforms to the financial marketplace to curb bad practices by banks and lenders.
I entered AAA looking to get Travelers Checks. They said that they were no longer available. They steered me into getting one of these Visa Travel Money Cards because of the fraud protections and ultimately, I was defrauded and now they are not behind me.
Payments
There are many different ways to pay, including gift cards, prepaid cards, or even with your mobile phone. But you don’t get the same consumer protections with each payment choice. We’re working to expose bad practices and to enact strong protections no matter how you pay.
Subtopics of Payments
Payroll Cards
- Document: Payroll Card Issue Paper
- Press Release: Safeguards needed on payroll cards
- Post: Paychecks: Paper or Plastic?
Publications
- CU letter to the National League of Cities on hybrid municipal prepaid cards
CU is concerned that some prepaid cards issued recently by cities do not provide consumers with the kind of fair deal consumers deserve
- CU letter to the International City/County Management Association on hybrid municipal prepaid cards
CU is concerned that some prepaid cards issued recently by cities do not provide consumers with the kind of fair deal consumers deserve.
- Gift Cards: Consumer Tips for the 2012 HolidaySeason
Gift cards continue to be a very popular gift giving solution. Before you buy or receive a gift card this holiday season, be sure you know which protections apply to your card, as they may vary depending on the type of card you buy.
- Comments to the CFPB on Prepaid Cards
FINAL Cmt ANPR Prepaid 7.23.12
- CU Testifies Before House Financial Services Committee on Mobile Payments
Testimony of Suzanne Martindale Staff Attorney Consumers Union of U.S., Inc. on The Future of Money: How Mobile Payments Could Change Financial Services before the Committee On Financial Services Subcommittee On Financial Institutions And Consumer Credit March 22, 2012 Chairman Capito, Ranking Member Continue Reading
- CU Comment on electronic payments for federal financial aid
ED_EFTComment5.31.12
- Pay at Your Risk? How to Make Every Way to Pay Safe for Mobile Payments
Consumers today have a bewildering number of choices when it comes to paying for goods and services
- How Top Wireless Carriers Compare on Consumer Protections For Mobile Payments
How Top Wireless Carriers Compare on Consumer Protections For Mobile Payments Most cell phone and tablet users can currently make mobile payments charged to a prepaid phone account or their monthly bill. But when consumers use these payment options, they may not get the protections they need to limit their financial liability if something goes Continue Reading
- New CU Article: How to Make Every Way to Pay Safe for Mobile Payments
Read a draft of our new article discussing the mobile payments market, the major risks it poses for consumers, and the few simple fixes that would ensure all consumers making mobile payments have guaranteed consumer protections.
- Public Benefits and Wages on Prepaid Cards: Better Protections Needed Now
Consumers Union and National Consumer Law Center call for better consumer choices and protections against high fees associated with government- and employer-issued prepaid cards
Press Releases
- Consumers Union urges cities to avoid unfair prepaid card practices
CU raises concerns about high fees and weak protections as cities begin issuing prepaid cards
- Consumer protections lacking for mobile payments
Consumers Union finds protections fall short when mobile payments are linked to phone accounts
- T-Mobile’s mobile payment plan risky for consumers
eless carrier’s direct carrier billing program not covered by protections against fraud and mistakes
- Emerging Mobile Payment Methods Could Pose Financial Risk to Consumers
Consumers Union calls on wireless carriers to protect consumers
- Mobile payments could leave consumers at risk
CU calls on regulators to require mobile payment providers to abide by strong consumer protections
- Rebate cards come with fees and other gotchas
CU offers tips to consumers on getting the most from rebate cards
- Federal Reserve Board urged to limit gift card fees
Consumer groups urge the Federal Reserve Board to limit fees and make gift cards more consumer friendly
- CU applauds Obama credit card proposals
Treasury Department offers support for stronger protections as the House prepares to vote on credit card bill
- Senate panel to consider landmark credit card bill
Consumer groups urge support for bill to curb unfair credit card practices
- Foreclosure plan offers hope for homeowners
Obama’s $75 billion foreclosure prevention program aims to spur banks to make at-risk mortgages more affordable
Blog Posts
- City Of Oakland Takes A Step In Right Direction
The City of Oakland is one of the first municipalities in the country to issue a combination identification card with a prepaid card feature and unfortunately did so without any input from consumer advocates. As a result, the card had many anti-consumer features and was loaded with fees. At first, the City of Oakland resisted Continue Reading
- Oakland City ID Cards – Great Idea, Bad Fees
In an effort to provide Oaklandites with city identification cards, officials fell short with respect to the prepaid aspect of the card. Unfortunately, the fees associated with the card come fast and often. The SF Chronicle did a great investigative piece that cited CU’s Michelle Jun analysis. The organization, which has examined a variety of prepaid cards for several Continue Reading
- Would You Send Money Overseas with Facebook?
In its quest for world domination (or something like it), Facebook recently announced yet another new service – this time they are partnering with Azimo, a UK-based startup company, to provide international money transfers. Facebook users will now be able to transfer money directly to friends almost anywhere in the world via a new online Continue Reading
- 2013: a pivotal year for mobile payments?
Forrester Research has projected that by 2017, mobile payments in the US will reach $90 billion. And in looking at the near future, one of their analyst’s blog states; “Mobile payment and digital wallet providers face significant hurdles to achieving adoption at scale, and 2013 will be a pivotal year in that quest.” There has Continue Reading
- Gift Cards: Consumer Tips for the 2012 HolidaySeason
Gift cards continue to be a very popular gift giving solution. Before you buy or receive a gift card this holiday season, be sure you know which protections apply to your card, as they may vary depending on the type of card you buy. Most gift cards have limits on expiration dates and fees provided Continue Reading
- CU Comment on CFPB Determination of Effect of Maine and Tennessee Unclaimed Property Laws
Consumers Union filed comments to the CFPB regarding the agency’s determination on the effect of the Electronic Funds Transfer Act and Regulation gift card provisions as they relate to Maine and Tennessee’s Unclaimed Property Laws.
- CFPB Releases Guide to New Rules on International Money Transfers
This week, the Consumer Financial Protection Bureau (CFPB) released a guide for small businesses on its remittance rule, which will protect consumers who send money electronically to foreign countries starting February 2013. The guide explains the key provisions of the rule and highlights important issues businesses should consider as they put the new rule into practice. Under the new Continue Reading
- CFPB Moves Ahead To Protect Consumers Sending Money Abroad
This week, the Consumer Financial Protection Bureau (CFPB) announced its plans to move forward with new rules that will provide strong new protections to consumers who send money abroad, also known as a “remittance.” Despite pressure from the industry to delay the rule and create big loopholes to exempt many businesses from the regulations, the Continue Reading
- What’s Behind the Magic Prepaid Card
There’s another prepaid card on the market today, the Magic by Magic Johnson prepaid card., issued by OneWest Bank. We found the fee schedule to be fairly straightforward. Here’s a quick summary: One-time set up fee: $4.95 This fee is waived if at least $50 is initially loaded onto the card. Monthly fee: $4.95 Continue Reading
- Campus Debit Card Trap Unveiled
U.S. PIRG recently released an in-depth report, “The Campus Debit Card Trap,” on banks and companies who are in the business of disbursing federal student aid money on debit and prepaid cards. They looked at nearly 900 card partnerships between colleges and banks and financial firms which impacts over 9 million students, or over Continue Reading
Worried about retirement?
The stock market has been unusually volatile, plunging hundreds of points, creeping back, only to plunge again. It is hard to stay disciplined about saving when every dime you’ve invested can evaporate in a day.
What is your biggest concern about your own retirement? We want to hear from you.
Where to complain
Online, by mail, phone or fax... Agencies need to hear from you!
Stories about Payments
Prepaid gift cards are a rip-off! The balances start to decline after receiving the cards. You can’t cash them in.
Ed of Lawrenceville, NJ
I found that the AMEX gift card I misplaced for a few months had expired and it was worthless.
Nicholas of theTownship Of Washington, NJ
I received a $50 gift card for Christmas. After 6 months, I found that I had approximately $17.50 left and had lost $32.50 in fees or 65%.
Scott of Norman, OK
Three malls in Central Massachusetts are selling their own prepaid cards at holiday time. If not used right away at any of the stores in the mall it automatically reduces in value!