• What people are saying
• Celebrate with us! 53 years of consumer education and advocacy
• Still time to register for webinar on scams targeting young adults
• Consumer Action launches grassroots FinLit initiative
• Coalition Efforts
• CFPB Watch
• Class Action Database: Closing the door on Realtors’ fixed commissions
• About Consumer Action

What people are saying

"With so much greed and so many scams going on, I find your warnings invaluable. It's the only chance we have to try to avoid getting scammed. Very grateful.” —SCAM GRAM reader Helga I. Fellay, Carmel Valley, CA  (subscribe to our mailing list to get the SCAM GRAM delivered directly to your inbox)

Celebrate with us! 53 years of consumer education and advocacy

By Anna Flores

In November, Consumer Action will mark 53 years of educating and advocating for consumers with a virtual convening and an in-person awards ceremony and reception. From our idealistic San Francisco roots, in 1971, to a national champion for consumers nationwide, we’ve stayed true to our mission of protecting and empowering, and we hope you’ll help us celebrate our 53rd anniversary by joining us at one or both of the day’s events.

This year’s anniversary theme—Empowering Consumers: Fairness, Transparency, Accountability—reflects the ongoing work that we and fellow advocates engage in to level the playing field for consumers in a marketplace that is frequently deceptive, often opaque, and not always held to account. 

Accordingly, this year’s virtual convening, from 1 p.m. to 2:30 p.m. (Eastern) on Wednesday, Nov. 13, will focus on the state of the credit and consumer reporting system. The information in consumer reports—including credit reports and background checks—is regularly used to determine if a consumer can get a personal loan or a credit card, a mortgage or an apartment, and even an insurance policy or a job. It goes without saying that accuracy and access to the information in these reports is critically important for consumers' economic well-being. Among the topics that will be discussed by our panel of experts, including representatives from the National Consumer Law Center, Consumer Reports and the Consumer Financial Protection Bureau, are if and how recent regulatory guidance will improve reporting accuracy and transparency and prevent discrimination; what is happening on the state and federal level regarding medical debt reporting; what practical steps consumers can take to help ensure that their reports are accurate; and how consumers can resolve problems with a consumer or credit reporting agency.

Register for the virtual convening here.

That evening, at our Consumer Excellence Awards ceremony and reception, from 6 p.m. to 8 p.m. (Eastern) at the AT&T Forum for Technology, Entertainment and Policy in Washington, D.C., we will recognize consumer champions in the public and private sectors. This year’s honorees are the Federal Trade Commission Bureau of Consumer Protection; the National Consumer Law Center; and Prince George’s Community College Financial Empowerment Center. Special Recognition Awards will be presented to Mark Espinoza, senior director of public affairs for Walmart, and Brian Rothery, vice president of government and public affairs for Enterprise Mobility. If you’ll be in the D.C. area that evening, we hope you’ll plan to join us for an evening of celebration, acknowledgement and camaraderie. 

Register for the anniversary awards cocktail reception here. 

To learn more, please visit our anniversary webpage. And we’ll look forward to seeing you in November.

Still time to register for webinar on scams targeting young adults

By Monica Steinisch

There’s still time to register for Consumer Action’s upcoming “What to know about scams and fraud targeting young adults” webinar, being presented on Tuesday, Sept. 10, from 10:00 a.m. to 11:30 a.m. (Pacific). There is no charge to attend.

Although younger, digitally savvy consumers may be adept at using the internet, TIME reported that Generation Z is more than three times as likely as Baby Boomers to fall for online scams. Part of the reason for this, the news report explained, is that many scams target members of the younger generation because a large proportion of them spend hours a day on social media. And, according to Pew research, these young adults generally are more trusting of information they see online.

Community educators often focus on informing older adults about how to avoid scams, yet we also need to reach young adults with similar information.

During this webinar, our panel of experts—Melissa Lanning Trumpower, executive director of the BBB Institute for Marketplace Trust; Emma Fletcher and Kira Krown, of the Federal Trade Commission; Alexander Odisheli, associate director of operations and business for the Capacity & Resilience Program at Global Cyber Alliance; and Amazon’s Abigail Bishop—will explain how scammers reach young adults and steal their money, share what the FTC’s reporting database and research can teach us about scams that impact young adults, introduce Global Cyber Alliance’s recently created CyberFlex tool for informing young adults about online security and scam avoidance, discuss Amazon’s efforts to protect young adults, and offer advice and practical tips for helping young adults avoid consumer fraud.

AFC professionals can earn 1.5 CEUs for participation in this free 90-minute training.

Register here for “What to know about scams and fraud targeting young adults.”

Consumer Action launches grassroots FinLit initiative  

By Monica Steinisch

In just a few weeks, Consumer Action outreach staff will travel to Philadelphia to deliver a day-long financial literacy train-the-trainer—the first of three regional, in-person financial health community training forums. This recently launched grassroots financial education initiative is made possible by funding from Walmart. 

As the financial literacy educators in Consumer Action’s 6,500-member network of community-based organizations know first-hand, a lack of money management and personal finance skills leads to poor decision making, an inability to weather even relatively minor financial setbacks, and vulnerability to frauds, scams and predatory practices. Even a basic understanding of personal finance principles can have a major impact, enabling individuals to establish a mainstream banking relationship, spend and save wisely, prepare for a financial emergency, use credit wisely, recognize predatory financial products, and prepare for a secure future. 

To reach underserved consumers on the community level, Consumer Action will train an expected 30-40 direct service providers at each community forum, teaching them how to incorporate our Money Management 1-2-3 personal finance curriculum into their efforts to improve the financial health of clients and community members. 

Money Management 1-2-3 consists of three parts, each one covering multiple topics related to a particular life stage: 

·            Part 1: Getting a Strong Start

·            Part 2: Achieving Financial Goals

·            Part 3: Planning a Secure Future 

For each part, there is a multi-page, multilingual publication for consumers, and (in English only) a companion PowerPoint presentation and lesson plan, including class activities and take-home worksheets, for educators to use to conduct their own workshops for clients and members of their communities. (All materials are available for free download on the Money Management 1-2-3 page of the Consumer Action website. The English fact sheets, PowerPoint presentations and lesson plans are available now. The Spanish and Chinese translations of the consumer publication will be available early next month, with the Vietnamese and Korean translations being available before the end of the year.)

Training presenters will cover topics ranging from money management fundamentals, like banking, savings, credit and debt management, to more advanced topics for building and protecting wealth, including investing, retirement planning and insurance. They will also explore ways to overcome complex barriers to financial health, including those related to social and cultural factors.

Each training forum will also include a session on helping consumers recognize and avoid various types of scams and frauds that threaten their financial well-being at seemingly every turn. 

Each participant in the trainings will receive a $50 Walmart gift card to offset any costs they might incur in getting to the training. 

At the close of each forum, participants will be invited to submit an application for their organization to receive a $3,000 grant from Consumer Action to support financial health education workshops in their local communities using the Money Management 1-2-3 curriculum. Four CBOs from each regional training forum will be awarded the $3,000 grants, for a total of $36,000 to 12 CBOs. Grantees will be required to conduct workshops in their communities over the course of the project timeline and report back with participation data and participant feedback.

If you are in the greater Philadelphia area and would like to attend the Sept. 25 train-the-trainer, please visit the online registration page. And if you’re in or near Boston or Chicago, keep your eyes open for email announcements about the training forums we’ll be doing there in the fall.

Coalition Efforts

By Monica Steinisch

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

Prescription drug shortages. The Task Force on Preventing and Mitigating Drug Shortages, of which Consumer Action is a member, wrote to lawmakers to urge them to prioritize the issue of preventing and mitigating drug shortages in the United States, which are at an all-time high and are also lasting longer. For millions of patients, drug shortages mean treatment delays, less effective treatments, or missed doses of therapies—literally a matter of life and death for some. The Task Force’s call to action urges Congress to enact comprehensive reforms, including increasing supply chain visibility, establishing a vulnerable medicines list, bolstering manufacturing capacity, and coordinating supply chain resilience and reliability efforts. These measures would help to better predict what shortages are likely to occur, understand the root causes of persistent drug shortages, foster supply chain resilience and reliability, and ensure patients have access to life-saving therapies. Read the letter here.

Fraud protections for consumers using bank transfers and payment apps. Consumer Action was among 49 organizations and academics to support companion bills in the U.S. Senate and House of Representatives aimed at protecting consumers from fraud perpetrated via person-to-person (P2P) payment apps and bank accounts. Consumers have been losing billions of dollars each year to this type of fraud. The Protecting Consumers from Payment Scams Act would create incentives for Big Tech and companies facilitating payments to find ways to make their payment systems safer. The Federal Trade Commission (FTC) received 2.6 million fraud complaints in 2023, totaling $10 billion in reported losses, though actual losses are likely much higher since fraud is vastly underreported. The legislation would, among other things, require the financial institutions initiating and receiving a fraudulent payment to share responsibility; clarify that consumers are protected from unauthorized charges, fraud and errors when using bank wire transfers and electronic transfers authorized by phone call; ensure remedies for consumers whose accounts are frozen or closed due to fraud perpetrated by others; and protect consumers against payment errors in certain cases. The bill was introduced in the House by Rep. Maxine Waters (D-CA) and in the Senate by Sen. Richard Blumenthal (D-CT) and Sen. Elizabeth Warren (D-MA). Read the press release here.

Protections for consumers of green lending products. In a letter to the Consumer Financial Protection Bureau, the Environmental Protection Agency, the Federal Trade Commission, the U.S. Department of Energy and the U.S. Department of the Treasury, Americans for Financial Reform and more than 40 signers, including Consumer Action, urged the government agencies to implement robust protections for consumers using green lending products, which, while providing financing for projects and purchases aimed at reducing energy costs and protecting households from climate change impacts, may expose consumers to predatory financing, unsuitable products and outright fraud. With millions of consumers expected to take on such projects and purchases in the coming years, it’s essential that they are protected from such things as contractor incentives, misleading sales practices, high-pressure sales sealed with an e-signature, predatory contract terms, and unaffordable loan costs. The letter urges guardrails to protect consumers, including: the use of independent navigators, such as HUD-certified housing counselors, to make borrowers aware of available low-cost funding and rebate programs before taking on a loan; navigator assistance to evaluate financing options; the availability of low-cost, independent energy audits prior to financing, to determine cost-effectiveness of a project/purchase; clear written disclosures of contract terms and notification of the right to cancel; rigorous pre-approval of contractors; and independent inspection of any installation before a contractor is paid. Read the letter here.

Medical debt reporting. More than a hundred advocacy organizations signed on to comments supporting the Consumer Financial Protection Bureau’s Notice of Proposed Rulemaking addressing medical debt on credit reports. Unlike other types of debt, medical debt is often unplanned—not consciously taken on, the way a loan or credit card balance is—and is, according to CFPB research, not accurately predictive of whether a person will repay a loan. In 2023, the three major credit reporting agencies—Equifax, Experian and TransUnion—voluntarily removed medical debts that are paid or under $500. These voluntary changes were positive, but still leave unpaid medical debts over $500 on the credit reports of 15 million consumers. The proposed rule would remove those debts owed directly to hospitals and healthcare providers. However, many people charge their medical bills to a credit card. The submitted comments urge the CFPB to extend the credit reporting ban to medical debt incurred using medical financing products and general-purpose credit cards, and to address common abuses by the providers of medical financing products, such as services being charged that were ultimately never provided, or being charged before the patient was screened for financial assistance eligibility or insurance coverage. The groups also pushed for the agency to extend the credit reporting ban to reports used for employment and tenant screening. Read the letter here.

CFPB Watch

By Ruth Susswein

Solar scam warning

Claims that homeowners “won’t have to pay an electric bill anymore” tempt many to invest in solar panels these days, but overinflated promises can lead to a debt spiral.

Investing in solar panels can significantly reduce a homeowner’s energy bills and help the environment, but the Consumer Financial Protection Bureau (CFPB) cautions that some high-pressure sales pitches fail to disclose all related fees and drive consumers into complex, high-cost loans. 

The CFPB warns that some door-to-door salespeople are misrepresenting the costs of, and savings from, solar-powered electricity. 

The Bureau wants consumers to beware of:

• Loans disguised as less costly. Salespeople subtract a projected 30% tax credit from the amount you will borrow, but the solar company cannot guarantee the amount you’ll receive as a tax credit.
• Bloated energy savings. Relying on solar energy can reap big savings, but how much you’ll save is hard to predict.
• Balloon loan payments. The monthly payment may jump higher after 18 months unless the borrower prepays 30% of the loan’s principal.

There are ways to save on solar energy, says the CFPB. Start by checking on free or subsidized energy programs offered by your state or city. And seek advice from a (free) independent energy auditor.

To avoid the risks of solar loans, see the CFPB’s issue spotlight report.

How to recover and rebuild after a storm

When hurricanes and floods damage your home and property, your focus may not quickly turn to how to reestablish your financial life, but that will be part of the recovery process.

The CFPB has created some disaster resources to help you organize and protect your finances.  

Among the agency’s recommendations: Alert your mortgage servicer, credit card issuers and other lenders of your situation so that they can help put your payments on pause temporarily. If your car is damaged, contact both your insurance company and the auto lender to learn what losses are covered and what you may owe. Likewise, review your renters insurance policy to understand what property is covered, and whether you can file a claim for the situation you are in.

Before catastrophe strikes, use the disaster checklist—available in multiple languages—to create an inventory of your most important documents, from copies of passports and driver licenses to wills and car titles, to facilitate the recovery process.

CFPB works to foil contracts designed to fail

Consumers with limited access to a traditional mortgage may turn to an alternate form of financing called a “contract for deed” or “land contract.” 

The CFPB warns that these home-buying contracts often come with predatory features, including inflated home prices, high interest rates and balloon payments.

At a field hearing in St. Paul, Minnesota, last month, the CFPB reported that contract-for-deed companies had preyed on the local Somali Muslim community using abusive tactics.  

“The CFPB has found that investors are targeting people of faith with predatory mortgage products that set the borrower up to fail,” said CFPB Director Rohit Chopra.

The consumer bureau cautions that these arrangements often place all the responsibilities of homeownership—home repairs, improvements and property taxes—on the borrower, while the seller retains legal title of the home until the borrower completes the payments. The worst part of these contracts is that no matter how much of an investment the homebuyer has made, if the borrower misses even one payment, the seller can renege on the deal, kick the buyer out, and resell the home to another unsuspecting family.

The CFPB says that federal home lending rules apply to contracts for deed. That means large companies that rely on this type of lending must:

• Assess a borrower’s ability to repay;
• Provide accurate disclosures, including the loan’s interest rate and repayment schedule; and 
• Limit or ban balloon payments.

If you have a complaint about a contract-for-deed lender, you can report it to the CFPB online or at 855-411-CFPB (2372).

Class Action Database: Closing the door on Realtors’ fixed commissions

By Monica Steinisch

Among recent settlements added to the Consumer Action Class Action Database is the $15 million settlement that will be paid by Cash App, a mobile payment service, and its owner, Block, to settle allegations that the companies failed to protect customer information. If you are a current or former Cash App user whose information was accessed without consent or who experienced fraudulent account withdrawals or transfers between Aug. 23, 2018, and Aug. 20, 2024, you may be eligible for reimbursement for out-of-pocket losses, lost time, and/or transaction losses related to the breaches. The deadline for claims is Nov. 18, 2024. 

Of note is the whopping $730 million in settlements reached in cases with a dozen real estate brokers and the National Association of Realtors (NAR) alleging that the companies and agents conspired to artificially increase commission fees in violation of antitrust laws. These and related cases stemmed from the long-standing practice of users of the Multiple Listing Service (MLS), a collective of hundreds of databases of property sales listings established by real estate brokers and their national trade group, NAR, to require a non-negotiable commission structure (averaging around 5.5% in 2023), regardless of the services provided by the brokers and agents. Approximately 80% of U.S. home sales involve an MLS listing. Plaintiffs argued that the rules for MLS listings violated antitrust laws, and artificially inflated broker commissions. In addition to providing a large settlement award to class members (eligible home sellers), the case brought about changes in MLS rules designed to prevent future collusion on commissions and improve compensation transparency. Learn more about what buyers and sellers can expect, here.

If you sold a home listed on a multiple listing service between Oct. 31, 2017, and July 23, 2024, and you paid a real estate broker commission, you may be eligible for payment. Visit the settlement administrator’s website to select the settlement you may qualify for. The deadline for claims is May 9, 2025. 

About Consumer Action

[Staff] [Annual Reports] [How to Donate]

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.