• What people are saying
• We asked, you answered: CBO survey results are in
• Fair bank fees, auto sales are focus of Consumer Advocacy Week 2024
• Warranty project yields survey results and new resources
• Coalition Efforts
• CFPB Watch
• Class Action Database: Discover Bank settles DACA discrimination case
• About Consumer Action

What people are saying

“I am so grateful for your thoughtful and informative writing. The resources you share are critical for understanding and protecting against scams!” —SCAM GRAM reader from New York (subscribe to our mailing list to get the SCAM GRAM delivered directly to your inbox)

We asked, you answered: CBO survey results are in

By Anna Flores

Earlier this year, Consumer Action conducted a survey of our database of more than 6,500 community-based organizations (CBOs) to determine whether the resources and services we offer meet their needs, and to help inform our future programming. Thanks to all who took the time to complete the survey. We wanted to share some of the results with you.

We asked about who CBOs serve and what issues are most important to them. The majority of respondents indicated they serve the following populations: low-to-moderate income, seniors, people of color, individuals with disabilities, veterans, immigrants, and limited-English-speaking consumers. Respondents said the most important issues to their organizations are consumer rights, financial education, rental housing, credit building, frauds/scams, and financial equity and inclusion.

The resources we offer that the responding CBOs find most valuable include our multilingual educational fact sheets, train-the-trainer webinars, educational videos that can be shared with the community, and educational activities/exercises for clients. Some respondents expressed the desire to once again have the ability to order bulk quantities of our publications, which is a service we discontinued due to cost-cutting measures. We acknowledge the request and appreciate the need; however, we are unable to continue this service, and hope you find the ability to download and copy our materials of value.

When asked what languages, in addition to English, are spoken by the CBOs’ clients, the top six are Spanish, Chinese, Vietnamese, Korean and, interestingly, Russian and French—a finding we’ll look into, since we don’t currently offer materials in Russian and French. Offering publications in multiple languages is consistently cited as a differentiator for us when compared to other consumer education organizations, and we want to make sure the languages we provide are relevant to the organizations we serve.

We also asked about the level of engagement with us via social media, website, newsletters, advocacy alerts and webinars/trainings, and about the preferred frequency of email messages. The majority of respondents indicated they are satisfied with their overall engagement with us; are comfortable with receiving one email per week; find our website to be user-friendly, relevant and informative; and are satisfied with our online resources. Surprisingly in this hyper-connected world, we found that a significant number of CBOs do not engage with us on our social media channels. Of those that do, most follow us on Facebook. Perhaps social media is not the most effective way to communicate with CBOs. We’d welcome additional feedback and insights on this.

An important part of our mission is to advocate for policies, regulations and legislation that advance marketplace transparency and equity. As such, we may call upon our network to lend their voice to issues before lawmakers and legislators. When asked whether CBOs read and were aware of our calls to action, the majority of respondents indicated they engage with our advocacy messages and would like to continue receiving such communications.

The survey results indicate we are on track in terms of the issues we cover and the resources we provide. As we develop our programming through the remainder of the year and into the future, we will strive to ensure that our programs remain relevant and useful to the communities we serve and that they advance our mission to champion the rights of underrepresented consumers nationwide and empower individuals to financially prosper.

We want to thank Capital One for the technical support provided to help conduct this survey. We remain open to hearing from you and welcome additional feedback. You can submit your comments and suggestions to .(JavaScript must be enabled to view this email address).

Fair bank fees, auto sales are focus of Consumer Advocacy Week 2024

By Ruth Susswein

Last month, as part of Consumer Advocacy Week, more than 130 advocates from dozens of states met virtually with members of Congress and their staffs to voice their strong support for new consumer protection rules that seek to root out deceptive and unfair practices.

During this year’s annual week-long lobbying push, advocates called on Congress regarding these issues:

• The Consumer Financial Protection Bureau’s (CFPB) credit card late fees rule caps late fees at $8 (down from $32, on average) unless the card issuer can prove that its costs are higher. (According to the CFPB, typical credit card late fees charged are five times the company’s processing cost.) The rule also provides a 15-day grace period before the late fee kicks in. However, a Congressional Review Act (CRA) resolution—a little-known oversight tool used to gut rules that federal agencies create—has been filed in the U.S. House and Senate that would repeal the rule and prohibit it from ever being reinstated in a substantially similar form. Advocates asked Congress members to oppose the CRA resolution.
• The CFPB’s proposed overdraft rule seeks to rein in punitive overdraft fees. (Many banks still charge about $35 per overdraft—significantly more than the median $24 overdraft that leads to an overdraft fee.) The rule would limit overdraft fees to the bank’s costs ($3 to $14); or the bank could charge fees that exceed its costs, but it would have to comply with Truth in Lending Act protections, including spelling out the interest rate and fees being charged and evaluating the consumer’s ability to repay the short-term loan. Advocates asked Congress members to publicly support the proposed rule.
• The Federal Trade Commission’s (FTC) CARS (Combating Auto Retail Scams) Rule bans hidden fees and useless add-on products (like rustproofing and nitrogen-filled tires), and requires auto dealers to reveal a car’s total price—not just the monthly payment—up front. The rule also allows the FTC to get refunds when consumers are misled. Advocates asked Congress members to support implementation of the CARS Rule, which has been delayed due to court challenges by two industry groups, and to oppose the FTC REDO Act (S 3014 / HR 7101), which would kill the rule and harm the FTC’s ability to regulate car dealers going forward.

During the meetings with lawmakers, advocates shared constituents’ real-life experiences with deceptive car sales and excessive bank fees.

Consumer Advocacy Week ran from April 15 through April 19 this year, with an advocacy training day on April 9 that covered how to effectively communicate key points. Experienced advocates explained how important it is to be organized and prepared for each visit, with specific roles divvied up in advance of each legislative meeting.

Consumer Action is one of 10 national organizations that cosponsor Consumer Advocacy Week. In this role, we assist with planning which issues to lobby on, contribute to training groups on how best to advocate, and encourage engagement by inviting Consumer Action’s national network of community-based organizations to participate.

Consumer Advocacy Week is produced and sponsored by Americans for Financial Reform, Center for Responsible Lending, Consumer Action, Consumer Federation of America, Consumer Reports, National Association of Consumer Advocates, National Consumer Law Center, National Consumers League, Public Citizen, UnidosUS and U.S. PIRG.

Warranty project yields survey results and new resources

By Monica Steinisch

Last year, Consumer Action received a grant from the Rose Foundation for Communities and the Environment to conduct research and education related to manufacturers’ warranties included with computer, tablet and smartphone purchases. Whether you’re filling out an online job application, talking to your doctor via a telehealth platform, transferring money using a payment app, or attending a class or meeting from home, a computer, tablet or smartphone is a necessity—and a significant expense. To make sure you stay connected and your investment is protected, it’s important to know what remedies the product warranty provides if the device has some sort of defect; understand the pros and cons of optional extended warranties and insurance; and know how to exercise your rights if you have to make a claim.

The project started with our staff taking a look at how easy—or difficult—it is for consumers to find the warranty information for their devices on manufacturer, retailer and wireless service provider websites. We found that product warranty information was most difficult to locate on general retailer sites, and much easier to find on the websites of telecoms and device manufacturers. Consumer Action advises consumers to visit the device manufacturer’s website for the most comprehensive and up-to-date general warranty information. In the case of a smartphone, consumers can also find out the warranty status through their wireless service provider’s website or app.

We then conducted a survey of 601 consumers, between the end of August and late September, to learn how aware they are of the coverage provided under the manufacturer’s warranty that came with their computers, smartphones and tablets, and how satisfied they are with that coverage. In a nutshell, we found that consumers would benefit from a better understanding of the manufacturer’s warranty (53% of respondents said they don’t generally understand what the manufacturer’s warranty covers and what is excluded), and many would like the coverage to last longer and cover more. Based on some responses, it also appears that there is some confusion between the manufacturer’s warranty and optional extended warranties (service contracts) or device insurance.

To help consumers understand what the manufacturer’s warranty typically covers and excludes, the pros and cons of optional protection, how to file a warranty claim, and what to do if dissatisfied with the outcome of a claim, we offer our fact sheet “Computer, tablet and smartphone warranties: Understanding and exercising your rights”—available for free download on the Consumer Action website. The publication is available now in English, Spanish and Chinese; Korean and Vietnamese translations will be available by June.

Also as part of the warranties project, Consumer Action will be hosting multiple trainings and producing a multilingual video.

To start, consumer educators, counselors, case managers and advocates in the San Francisco Bay Area are invited to a free training in Oakland on Wednesday, May 22, from 9:00 a.m. to 12:30 p.m. The session will feature presentations by speakers offering practical information to help consumers understand and assert their warranty rights when dealing with defective or malfunctioning devices and make informed choices about optional extended warranties and device insurance. They will also provide information about the new California “right to repair” law. Register for the free training event here. (All attendees will receive a $25 e-gift card to help offset any travel expenses. AFC professionals can earn 1.5 CEUs for participation in this free training.)

To be alerted about future training and video release dates, subscribe to Consumer Action’s email list.

“We’re grateful for the Rose Foundation’s support of Consumer Action’s efforts to enable consumers to make informed decisions when choosing among products and coverage options and to empower them to exercise their rights as owners,” said Consumer Action’s executive director, Anna Flores.

Coalition Efforts

By Monica Steinisch

Consumer Action and its allies recently called on policymakers and regulators about these important issues:

Abusive overdraft fees. Consumer Action was one of 144 organizations signed on to a letter expressing strong support for the Consumer Financial Protection Bureau’s (CFPB) proposed rule governing overdraft fees charged by large banks. The proposed rule would prevent big banks from charging excessive overdraft fees—typically $35—that are far higher than the cost to the financial institution to cover the overdraft. These fees, which serve as a bank profit center, can quickly snowball and drive consumers into debt and out of the banking system. The proposed rule would require banks to limit overdraft fees to a modest amount that covers the financial institution’s costs or, if the bank charges higher-priced overdraft credit, to comply with the same protections required of credit cards (such as transparent APR disclosures and assessment of the consumer’s ability to repay). The proposed rule would apply to the biggest banks, but advocates urged the CFPB to issue a subsequent rulemaking to cover smaller financial institutions and to stop big tech companies that offer banking apps from evading overdraft fee rules. Read the letter here.

Data broker abuses. Consumer Action joined two dozen other organizations in a campaign to urge the Federal Trade Commission (FTC) to establish a national registry that would enable consumers to, with one click, opt-out from having their personal information, like home address and phone numbers, sold on data broker websites. Data brokers make money by selling personal information. While the information is often used for marketing purposes, it is increasingly used to perpetrate scams. It has also been used to threaten and harass individuals, from librarians to judges to abortion clinic workers. The date broker registry would be similar to the National Do Not Call Registry, which allows consumers to register the home or cell numbers they do not want telemarketers to call. The effort is hosted at DoNotDox.com, where anyone who would like to support the effort can add their name to the petition to get a national data broker registry established. (Doxxing refers to the act of publicizing personally identifiable information, usually on the internet, and without the person’s consent). Read the press release here.

The student loan crisis. Consumer Action joined two dozen other organizations in a campaign to urge the Federal Trade Commission (FTC) to establish a national registry that would enable consumers to, with one click, opt-out from having their personal information, like home address and phone numbers, sold on data broker websites. Data brokers make money by selling personal information. While the information is often used for marketing purposes, it is increasingly used to perpetrate scams. It has also been used to threaten and harass individuals, from librarians to judges to abortion clinic workers. The date broker registry would be similar to the National Do Not Call Registry, which allows consumers to register the home or cell numbers they do not want telemarketers to call. The effort is hosted at DoNotDox.com, where anyone who would like to support the effort can add their name to the petition to get a national data broker registry established. (Doxxing refers to the act of publicizing personally identifiable information, usually on the internet, and without the person’s consent). Read the announcement here.

Unfair, deceptive auto dealer practices. Consumer Action was one of 144 organizations signed on to a letter expressing strong support for the Consumer Financial Protection Bureau’s (CFPB) proposed rule governing overdraft fees charged by large banks. The proposed rule would prevent big banks from charging excessive overdraft fees—typically $35—that are far higher than the cost to the financial institution to cover the overdraft. These fees, which serve as a bank profit center, can quickly snowball and drive consumers into debt and out of the banking system. The proposed rule would require banks to limit overdraft fees to a modest amount that covers the financial institution’s costs or, if the bank charges higher-priced overdraft credit, to comply with the same protections required of credit cards (such as transparent APR disclosures and assessment of the consumer’s ability to repay). The proposed rule would apply to the biggest banks, but advocates urged the CFPB to issue a subsequent rulemaking to cover smaller financial institutions and to stop big tech companies that offer banking apps from evading overdraft fee rules. Read the letter here.

CFPB Watch

By Ruth Susswein

In monitoring the mortgage market, the Consumer Financial Protection Bureau (CFPB) has repeatedly discovered mortgage servicers that have imposed illegal junk fees and have failed to properly evaluate homeowners for loan modifications.

Mortgage servicers process your monthly mortgage payment and alert borrowers to repayment options when they are unable to meet their financial obligations.

According to the Bureau, mortgage servicers have:

• Charged consumers illegal property inspection fees;
• Missed deadlines to pay property taxes and home insurance (costing homeowners penalty fees); and
• Wrongly accused homeowners of nonpayment and denied struggling borrowers repayment options.

“Homeowners cannot just simply switch providers if their mortgage servicer charges them illegal junk fees," said CFPB Director Rohit Chopra. "Since mortgage borrowers are captive to a company they never chose to do business with, we are working hard to detect and deter violations of law.”

Millions of dollars in junk fees have been refunded to consumers, and deceptive servicing practices have been halted due to the CFPB’s oversight.

Tenants' rights

Renting a home can be challenging, especially when you are unaware of the tools that may be used to limit your options. Many landlords rely on tenant screening reports to help assess prospective renters.

The CFPB has teamed up with other federal agencies to publish an in-depth online article, including dozens of helpful resources, to help tenants navigate the tenant background check process.

The information spells out what to know before you fill out an application with a tenant background check requirement and pay for a tenant screening report.

It also explains what your rights are if the landlord rejects you based on a background check. For example, you’re entitled to know which tenant screening company was used so that you can request a free copy of the report to check it for errors. You’re entitled to correct any errors through the background check company. You also have the right to not be discriminated against when applying for housing. There are tips on what to do and where to get help if you suspect discrimination. Find much more on tenant screening reports here.

While you’re at it, you may want to order a free copy of your credit report from AnnualCreditReport.com (or 877-322-8228) to make sure there are no mistakes tucked away there, either.

Credit reporting complaints top the list again

The vast majority (81%) of complaints that the CFPB receives from consumers continue to be about credit reports. Consumers filed more than a million complaints with the Bureau about Equifax, Experian and TransUnion credit reports in 2023.

Consumers complained about not recognizing accounts in their credit reports—possibly the result of identity theft—and not being able to resolve the errors after notifying the credit bureaus. These inaccurate records of our payment history are used to evaluate us for credit, loans, jobs and insurance. Even so, credit bureau complaints have risen 34% over the year before, according to the CFPB.

In addition to consumer complaints, the CFPB continues to find credit bureau inaccuracies when they conduct supervisory exams. Examiners say credit bureaus have failed to remove or block information related to identity theft. They’ve also accepted data from unreliable furnishers (companies that report consumer information to the credit bureaus) that are unwilling to resolve or even acknowledge certain consumer disputes. When violations are uncovered, the CFPB requires credit reporting companies to correct errors and delete fraudulent files.

The CFPB says the law is clear: Credit bureaus have a legal obligation to “investigate information that a person says is incorrect or incomplete in their file” and to correct the errors that are identified.

Class Action Database: Discover Bank settles DACA discrimination case

By Monica Steinisch

Among recent settlements added to the Consumer Action Class Action Database is the $15 million Seresto agreed to pay to settle a case alleging that the company falsely labeled and marketed their flea and tick collars as providing eight months of protection from fleas and ticks while at the same time failing to disclose that the products presented health risks to pets. If you purchased any Seresto product on or before July 8, 2024, you could be eligible for payment. The deadline for claims is July 23, 2024.

Of note is the $975,000 Discover Bank agreed to pay to settle allegations that it discriminated when it denied loans to applicants with Deferred Action for Childhood Arrivals (DACA) status even though they met lending requirements. If you had DACA status when you applied for a loan from Discover between July 22, 2018, and Feb. 29, 2024, and your loan application was rejected, or you were required to have a U.S. citizen or lawful permanent resident co-sign your application, you may be eligible for payment—up to $2,500 for eligible class members in California; up to $250 for eligible non-California residents. The deadline for claims is July 11.

AT&T data breach alert: By now you’ve likely heard about the massive AT&T data breach, announced March 30, that compromised the information of 7.6 million current and 65.4 million former AT&T customers. Multiple class actions lawsuits have already been filed against the company, but it could be years before the cases are resolved. AT&T will be notifying all customers directly impacted by the breach, and Consumer Action will keep you posted about any settlements that may be reached.

In the meantime, the BBB and other experts are sharing steps you can take if you think you may have been affected or if you just want to be better protected should you be affected by any future data breaches.

• Change all your passwords. Create a different, strong password for each account.
• Enable multi-factor authentication.
• Check financial accounts and credit reports for questionable activity.
• Consider credit freezes and fraud alerts, offered free by the three major credit reporting agencies (Equifax, Experian and TransUnion), to prevent someone with your stolen information from opening new accounts in your name.

AT&T said it will be offering free identity theft and credit monitoring services; information will be included in the letters AT&T is emailing and mailing to impacted customers.

About Consumer Action

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Consumer Action is a nonprofit organization that has championed the rights of underrepresented consumers nationwide since 1971. Throughout its history, the organization has dedicated its resources to promoting financial and consumer literacy and advocating for consumer rights both in the media and before lawmakers to promote economic justice for all. With the resources and infrastructure to reach millions of consumers, Consumer Action is one of the most recognized, effective and trusted consumer organizations in the nation.

Consumer education. To empower consumers to assert their rights in the marketplace, Consumer Action provides a range of educational resources. The organization’s extensive library of free publications offers in-depth information on many topics related to personal money management, housing, insurance and privacy. At Consumer-Action.org, visitors have instant access to important consumer news, downloadable materials, an online “help desk,” the Take Action advocacy database, and more. Our in-language media outreach allows us to share scam alerts and other timely consumer news with a wide non-English-speaking audience.

Community outreach. With a special focus on serving low- and moderate-income and limited-English-speaking consumers, Consumer Action maintains strong ties to a national network of more than 6,500 community-based organizations. Outreach services include in-person and web-based training and dissemination of financial and consumer education materials in many languages, including English, Spanish, Chinese, Korean and Vietnamese. Consumer Action’s network is the largest and most diverse of its kind.

Advocacy. Consumer Action is deeply committed to ensuring that underrepresented consumers are represented in the national media and in front of lawmakers. The organization promotes pro-consumer policy, regulation and legislation by taking positions on dozens of bills at the state and national levels and submitting comments and testimony on a host of consumer protection issues. Additionally, its diverse staff provides the media with expert commentary on key consumer issues supported by solid data and victim testimony.