Posts Tagged With ‘ Banks ’

Many people get caught up in credit card debt. In 2022, Americans increased their credit card debt by a record $179.4 billion. The total owed by credit-card holders now is more than $1.1 trillion. However, people in some states charge less on their credit cards than others. WalletHub, a personal finance website, takes a look at the issue in “2023’s States With the Highest and Lowest Credit-Card Debts.” WalletHub found the following for median credit-card debt in the 50 states and the District of Columbia: States with the highest credit-card debts        1. Alaska – $3,517 District... Continue Reading

Another big bank is being exposed for corporate fraud. Bank of America will pay more than $100 million to customers for double-dipping on fees imposed on customers with insufficient account funds, withholding reward bonuses promised to credit card customers, and misusing personal information to open accounts without customers’ knowledge, the Consumer Financial Protection Bureau announced Tuesday. The Office of the Comptroller of the Currency also found that the bank’s double-dipping on fees was illegal. Bank of America will pay a total of $90 million in penalties to the CFPB and $60 million... Continue Reading

Another large financial institution has been caught gouging customers. Raymond James Financial Services agreed to settle allegations Tuesday with six state securities regulators for charging unreasonable commissions on trades that harmed investors. The broker-dealer will pay at least $8.2 million in refunds to clients, and $4.2 million in penalties and costs. A task force of state regulators from Alabama, California, Illinois, Massachusetts, Montana, and Washington investigated Raymond James’s compensation practices, and found that it charged excessive commissions on more than 270,000 low-principal... Continue Reading

Financial institutions are increasingly using chatbots, which put out human-like responses using computer programming, to communicate with customers to save money. Chatbots sometimes have human names and use popup features to encourage interaction. Some chatbots use more complex technologies such as “artificial intelligence” to respond to customers. The Consumer Financial Protection Bureau has received hundreds of complaints from frustrated customers trying to receive timely, straightforward answers from their financial institutions or to raise a concern or dispute. “To reduce costs, many... Continue Reading

More than three quarters of adults have used a payment app, called a P2P or peer-to-peer or person-to-person app. Widely used nonbank payment apps include PayPal, Venmo, and Cash App. The apps can be used on a computer or mobile device to send money to someone else without writing a check or handing over cash. Young adults use payment apps even more frequently. Eighty-five percent of consumers aged 18 to 29 have used one of these apps, according to a Consumer Reports survey. The Consumer Financial Protection Bureau offers the following information on the pitfalls of using payment apps: Money... Continue Reading

It’s helpful for consumers to take a look at complaints that are received by agencies and organization to know what to watch out for in their financial lives. The Consumer Financial Protection Bureau monitors consumer complaints to determine risks in consumer financial markets and to prioritize agency action. In 2022, the CFPB found: During 2022, the CFPB received about 1,287,000 consumer complaints and sent more than 820,000 complaints to about 3,200 companies for review and response. Complaints about credit or consumer reporting increased, accounting for more than 75 percent of all consumer... Continue Reading

Photo: Minh Nguyen Republicans doing the bidding of Wall Street for years led to the current banking crisis. In 2018, Republicans led an effort, lobbied heavily by the financial industry, that resulted in a law, signed by former President Donald Trump, that gutted the Dodd-Frank Wall Street Reform and Consumer Protection Act’s risk assessment safeguards for midsize banks. The effort, led by House Financial Services Committee Chair Patrick McHenry, gave federal agencies discretion in regulation, which paved the way for banks such as Silicon Valley Bank to take huge risks beyond their means without... Continue Reading

One of the best consumer actions in recent years is the creation of the Consumer Financial Protection Bureau in 2011. Established after the Great Recession of 2007-08 to set up one federal agency to help consumers with their financial issues, the CFPB has made great strides in improving the position of consumers in the marketplace. Previously, seven different federal agencies were responsible for consumer financial protection, but none viewed consumer financial protection as their top priority. Examples of how the CFPB has benefitted consumers are it recouped about $16 billion for consumers,... Continue Reading

Things are busy, here in my corner of the USA. I’m behind in reporting on what’s happening for National Consumer Protection Week. A lot of my time has been taken up since the first of the year taking part in the Dean Ornish heart health program. It ends Wednesday. I’ll be reporting on its many benefits soon. Activities for National Consumer Protection Week Here are some activities the Federal Trade Commission if offering for the consumer week: Wednesday, March 8 (In-person event) 10am – 2 p.m. HAST: Visit the FTC table at the Department of Commerce and Consumer Affairs NCPW Fair at... Continue Reading

In 2022, Americans paid more than $120 billion in interest and fees on credit cards. With interest rates going up, that amount is continuing to increase. For consumers to get the best offers on credit cards to keep their costs down, their repayment records need to be reported to credit bureaus. In 2020, the Consumer Financial Protection Bureau or CFPB found that the largest credit card companies started to deliberately suppress their customers’ actual payment amounts from the nationwide consumer reporting system. Last May, the CFPB sent letters to the CEOs of the nation’s biggest credit... Continue Reading