We support reforms to the financial marketplace to curb bad practices by banks and lenders.
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Publications
- Stopping the Payday Loan Trap: Alternatives That Work, One’s That Don’t
This report, by the National Consumer Law Center, examines over 100 payday loan alternatives and finds many that are genuine alternatives and others that are a payday loan by any other name. The report describes the history of the 36% rate cap and explains why, to be a safe and affordable alternative to a payday Continue Reading
- Testimony in opposition to HR 1214, The Payday Loan Reform Act of 2009
- Consumer Federation of America Payday Loan Page
Consumer Federation of America’s information resource on payday lending for consumers and advocates Payday loans are extremely expensive cash advances that must be repaid in full on the borrower’s next payday to keep the personal check required to secure the loan from bouncing. Cash-strapped consumers run the risk of becoming trapped in repeat borrowing due Continue Reading
- Payday Loans
Payday loans are single payment small loans based on the lender holding the borrower’s personal check for future deposit. Loans cost 390 to 780% APR when lender charges fees of $15 per $100 repaid in two weeks. Click for a calculator.
- CRL Issue Brief: 36% APR Cap on High-Cost Loans
From the Center for Responsible Lending: A 36% APR cap on high-cost loans promotes financial recovery Loans at 400% annual interest wreck family finances
- Consumer groups band together against unscrupulous payday lenders in Pennsylvania
The predatory nature of the payday lending industry has an adverse effect on the citizens of Pennsylvania.
- CU letter with other consumer groups regarding payday loans to FDIC
Letter to the FDIC Chairman on implementation of Revised Payday Loan Guidelines.
- What’s Wrong with the Proposed Check 21 Regulations: Consumer Group Comments
These comments are filed by CU, the Consumer Federation of America, U.S. PIRG, the National Consumer Law Center, and Consumer Action. Check 21 treats an electronic transfer of funds initiated by check under check law, but at the same time provides some new consumer rights to accompany this fundamental change in how checks are processed.
- CU Testimony On the Check Clearing for the 21st Century Act Before the House
If this legislation is enacted into law, it would have a significant impact on an estimated 45 million consumers who receive their original paper checks in the mail every month
Press Releases
- Bankruptcy bill will erect harsh new barriers and reward abusive lenders
Congress passes bill favoring creditors over those who suffer financial misfortune. Read letter.
- Bankruptcy bill on senate floor will erect harsh new barriers and reward abusive lenders
As the U.S. Senate began considering bankruptcy legislation, national consumer organizations called on Senators to reject the bill because it would favor creditors at the expense of Americans who have suffered genuine financial misfortune.
Blog Posts
- 3 Million Mobile Payments a Week
Recently we asked if 2013 was going to a breakout year for mobile payments. While there is still plenty of year to go, one company’s customers appear to have embraced mobile payments: Starbucks. The coffee giant has the largest retail mobile payment platform in the U.S. Each week, U.S. customers generate over three million U.S. mobile payment transactions its cafes. Starbucks’ Continue Reading
- Safer Mobile Payments? Steps You Can Take to Protect Yourself
There are many ways to pay using your mobile phone – different apps or programs, and different ways to fund the transactions. Given the complexity of the mobile payments marketplace, it’s no wonder that when we asked consumers for their mobile payment stories, many expressed concern: What will happen if I lose my phone, anyone can shop and 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
- March 1st: Mandatory Electronic Payments for Most Federal Benefit Recipients
Nearly all federal benefit recipients will no longer be receiving checks in the mail starting this Friday, March 1st. Many beneficiaries have already been required to provide their own account information or obtain a Direct Express prepaid card if one is not provided. Recipients will be required to obtain their payments electronically, which includes Continue Reading
- Ban Deferred Interest Cards, Consumers Union Says in Comments to CFPB
February 22 marks three years since key provisions of the Credit Card Accountability Responsibility and Disclosure Act (the CARD Act), which overhauled credit card practices, took effect. But gaps in consumer protection remain, Consumers Union said in comments submitted Tuesday February 19 to the Consumer Financial Protection Bureau (CFPB). The CARD Act protects consumers from Continue Reading
- Ideal Financial Solutions Scam Revealed
Banking electronically has made life easier for many consumers, allowing for faster and more convenient payments. On the other hand, ripping people off has also become significantly easier as well. The FTC just announced the unraveling of a large scam, led by “Ideal Financial Solutions” which defrauded consumers of more than $25 million in unauthorized debit Continue Reading
- Go Bank and Simple: What Consumers Should Know
Updated 2.27.13 We obtained some additional information from Simple about their account. Simple’s Visa card is a prepaid card but the account differs in that it is a hybrid since consumers who have a Simple account do in fact have a traditional checking account with Bancorp Bank. We have made the following changes to our Continue Reading
- Justin Bieber and Prepaid Cards
There has been a fair amount of media attention over Bill My Parents’ new spokesperson, Justin Bieber and their new prepaid card, “SpendSmart.” SmartCredit.com’s Consumer Educati0n President summarized his point of view on a recent Fox News Business report. His opinion certainly once again begs the question of why should or would a consumer Continue Reading
- End of Tandem Money
Consumer advocates, including ourselves, have been very skeptical and have spoken out against credit on, or tied, to prepaid cards. Regulators have also been wary. In the case of Tandem Money, its investors also became wary, resulting in the company’s closure. The program manager to Tandem Money’s prepaid card, Insight Card Services acknowledged, “We had 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
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!