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?
Prepaid Cards
- Press Release: CFPB considering new prepaid card protections
- Document: Prepaid Cards: Loaded with Fees, Weak on Protections
- Press Release: Prepaid cards: Loaded with fees, weak protections
Publications
- 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
- Group letter calls on FDIC to make safe template for prepaid cards
To: Federal Deposit Insurance Corporation SafeAcctPilot@fdic.gov From: Calvert Asset Management, Inc. Consumer Action Consumer Federation of America Consumers Union National Consumer Law Center® (on behalf of its low-income clients) Sergeant Shriver National Center on Poverty Law Re: Safe Transaction Account Template for Prepaid Cards Date: November 24, 2010 Calvert Asset Management, Inc., Consumer Action, Consumer Continue Reading
- Gift Cards 2010: New consumer tips for the holiday season
Gift Cards 2010: New Consumer Tips for the Holiday Season The year 2010 saw many new developments for gift cards. The gift card provisions of the Credit CARD Act went into effect on August 22, 2010, giving all gift cards minimum protections against early fees and expiration dates. And “virtual” or “e-gift” cards, which you Continue Reading
- Group comments on NACHA’s proposed rule change for revoking single entry authorization
Sent via electronic delivery to: mbondoc@nacha.org September 28, 2010 Maribel Bondoc Manager Network Rules National Automated Clearinghouse Association 13450 Sunrise Valley Drive Herndon, VA 20171 Dear Ms. Bondoc: Please accept the attached comments on NACHA’s proposed rule change for revoking single entry authorization and other matters. These comments are filed by the National Consumer Law Continue Reading
- Prepaid Cards: Second-Tier Bank Account Substitutes
Prepaid Cards: Second-Tier Bank Account Substitutes Consumers Union, the nonprofit publisher of Consumer Reports ® By: Michelle Jun, Staff Attorney With Consumer Federation of America and National Consumer Law Center, on behalf of their low-income clients September 2010 Prepaid cards are widely marketed as more convenient, safe and cost effective, a straightforward way to manage Continue Reading
- CU comment on “end of checks” proposed rule
Comment on Treasury proposal to amend 31 CFR Part 208.
- Comments to Treasury’s proposal to change the types of accounts into which federal payments can be directly deposited
COMMENTS to the Department of the Treasury Financial Management Service 31 CFR Part 210 RIN 1510-AB 24 Docket Number FISCAL-FMS-2009-0001 by Consumer Federation of America Consumers Union the National Consumer Law Center on behalf of its low-income clients and the National Senior Citizens Law Center July 13, 2010 ___________________ DOTHAN, Ala. — One recent morning, Continue Reading
Press Releases
- 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
- Senate approves Wall Street rescue package
Senate bill strengthens Bush Administration plan, but critical protections for consumers and taxpayers still needed
Blog Posts
- CFPB’s first big rule protects money sent overseas
CFPB Director Richard Cordray is making it clear that CFPB is hitting the ground running – yesterday he posted a summary of the agency’s first big rulemaking, which protects money transfers to other countries. These transfers, also called “remittances,” had few legal protections before despite the fact that U.S. residents send billions of dollars all Continue Reading
- CI Report: Consumers at risk when sending money overseas
Our friends at Consumers International have just released a new report that aims to shed light on the complex issue of international “remittances,” or money transfers – a system that is costing consumers up to 20% of the money they send in charges. Millions of consumers around the world transfer money to their friends and Continue Reading
- Suze Orman’s Prepaid Card: What is in the fine print
There has been a lot of buzz around Suze Orman’s new prepaid card. However, a prepaid card is still just a prepaid card and consumers should pay attention to the fine print. Here are some take-aways after looking at the fine print of Suze Orman’s new prepaid card: Fee Summary: Monthly fee $3 (first month Continue Reading
- Smartphone security threats leave consumers vulnerable to fraud
Is your smartphone protected from hackers? Chances are it’s not. Less than 5 percent of all smartphones are protected by security software, according to a new report by Juniper Research. That means your smartphone could be hacked without your knowledge, leaving you vulnerable to identity theft and financial loss. Security threats are on the rise Continue Reading
- Send BofA Your Own Video Breakup: “Drop the fee or we drop you!”
We imagine the conversation might go something like this…Press play!
Do you have something to say to Bank of America? Soon BofA will charge you $5 a month to use your debit card, even though they’re already collecting enough money from retailers to profit on the processing costs.
- Your Buying Habits May Be Key To Mobile Pay Success
Your shopping habits and information may be the key to mobile payments success.
- No Consumer Guarantees With T-Mobile “Direct Carrier Billing” Program
Wireless Carrier’s Mobile Payment Plan Does Not Cover Fraud Or Mistakes. Consumers at risk.
- When Farmville Leads To Fraudville
Consumers may not be protected when using mobile payments for games like Farmville
- Mobile Pay or Mobile Mess
Mobile payments are supposed to make consumers’ lives simpler by enabling consumers to pay with cell phones instead of carrying plastic or cash. But, mobile payments may cause consumers huge headaches with the lack of consistent consumer protections if a transaction goes awry or when mobile phones are lost or stolen and used to make unauthorized purchases.
- Prepaid Cards vs Bank Account
Most prepaid cards charge higher fees than basic checking accounts offered by the top five banks in the U.S., according to our new reprt
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!