Consumers with poor credit pay hundreds or even thousands of dollars more every year for basic auto insurance coverage required by state laws, new report shows. “On average, a consumer with poor credit has to pay twice as much for auto insurance as a driver with excellent credit, even if everything else, including their driving safety history, are the same,” said Douglas Heller, director of insurance for the Consumer Federation of America and the study’s co-author. The report found that nationwide, American consumers with clean driving records and excellent credit pay an average annual... Continue Reading
Posts Tagged With ‘ finances ’
USASF Servicing is being charged with illegal practices that harmed consumers with auto loans including disabling borrowers’ vehicles, improperly repossessing vehicles, double-billing borrowers for insurance premiums, and failing to return millions of dollars in refunds, according to a lawsuit filed Wednesday . With its lawsuit, the Consumer Financial Protection Bureau is seeking to return money to consumers, impose civil penalties, and stop any future violations. “The CFPB is suing USASF for a range of misconduct, including illegally activating devices that prevented borrowers from starting... Continue Reading
American companies are using unfair, deceptive, and abusive practices as they sells many consumer financial products, the Consumer Financial Protection Bureau said in a new report on what it found as it reviews business practices at financial institutions. For example, auto lenders have originated loan balances above the real value of the car being purchased and engaged in illegal collection practices while servicing these loans. The report covers findings from CFPB examinations completed from July 2022 to March 2023. “Today’s report furthers our efforts to highlight conduct that violates... Continue Reading
As summer is winding down, you’d think back to school sales would be the best bet for deals. However, it also brings free cookies, tax free shopping, deals on garden tools, and more. Here’s what DealNews.com suggests as the best bargains to look for in August. National Chocolate Chip Cookie Day deals It’s Aug. 4, so look for free cookies and great deals. Back to school supplies These yearly sales are now underway. In addition to deals on color crayons, notebooks, and folders, look for price reductions on backpacks, lunch boxes, clothing, and tech items as well. Tax free items Some states... Continue Reading
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
Over the years, I’ve seen hundreds, maybe even thousands, of ads on Facebook. To me, it doesn’t seem like a very good place to be placing orders. You have no idea about the reputation of the companies. In the spring, I succumbed. I ordered a “jacket” for my sister for her birthday. I also ordered one for me. The ad said orders would be received promptly. After I ordered one jacket, I was notified it came from Italy and was in customs. The second, identical jacket, I was informed, was coming from Ireland. Many more messages arrived about the jackets being in customs at various places. When... Continue Reading
To help consumers, the Biden administration is cracking down on junk fees, price-fixing and price gouging on food, and mergers. President Joe Biden announced the actions Wednesday the day before the fifth meeting of White House Competition Council, which he appointed in 2021. The council is made up of 10 cabinet members and the heads of seven independent agencies. “It’s about basic fairness,” Biden said when he addressed cabinet members and other council members. “Folks are tired of being played for suckers.” The U.S. Department of Justice and the Federal Trade Commission will be publishing... Continue Reading
More than 804,000 borrowers will have $39 billion in federal student loans discharged in the coming weeks, the U.S. Department of Education announced Friday. The discharges are fixes to ensure borrowers have an accurate count of monthly payments that qualify toward forgiveness under income-driven repayment plans. These fixes are part of the department’s actions to address failures in the administration of the federal student loan program in which payments made under IDR plans weren’t accounted for. Borrowers are eligible for forgiveness if they’ve had either 20 or 25 years of qualifying... 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