The little guy

If you know me, you know I am all for the little guy being able to stand up and tell big corporations "That's not right!"  I get very frustrated when I see companies doing things that are morally wrong, and only doing them because they know they have so many lawyers that the little guy will not be able to afford to fight them in court for with is right.

My good friend Denise Richardson recently wrote this article about the fact that the Supreme Court with be making a ruling in November that could change class-action lawsuits.  Here is a portion of her article . . .

Sometimes a class-action lawsuit is the only way to force a corporation to assume its corporate responsibility. Access to the justice system and a fair shake under the law are the little guys’ safety nets. Without the threat of a lawsuit, corporations can engage in negligence or recklessness, and the consumer will have little to say in his own defense. Which is why AT&T Mobility v. Concepcion, the case coming up in the Supreme Court this November, has got my attention and should have yours.

In this case, the Court will decide whether the Federal Arbitration Act preempts state-law rulings that class-action bans are unconscionable. They will decide “whether corporations can ban class actions in the fine print of their contracts with consumers and employees.

There is a petition you can sign letting them know that you are against forced arbitration and feel the consumer should continue to have the right to class-action lawsuits at http://www.fairarbitrationnow.org/

Good news for some homeowners

In a press release from the FTC it was announced that Countrywide, who was accquired by Bank of America in 2008, will be paying $108 million to homeowners who were struggeling to keep their homes and Countrywide collected exsessive fees from.

“Life is hard enough for homeowners who are having trouble paying their mortgage. To have a major loan servicer like Countrywide piling on illegal and excessive fees is indefensible,” said FTC Chairman Jon Leibowitz. “We’re very pleased that homeowners will be reimbursed as a result of our settlement.”

The bank took advantage of the fact that these people were in an emotional place while they were making these choice because they feared that they could loose their home.  They trusted what the bank employees were telling them, and as my husband and I learned years ago, you cannot always trust that the information that they are giving you is true and accurate, even when you think you are asking the right questions.

To read all of the information on this case and the settlement with the FTC, you can go to
http://ftc.gov/opa/2010/06/countrywide.shtm

Read the fine print

An article I just read talks about how many people do not read the fine print in contracts that they sign. I have to admit, I have been guilty of this myself. But this contract takes things to a whole new level. Here is a portion of the article.

A computer game retailer revealed that it legally owns the souls of thousands of online shoppers, thanks to a clause in the terms and conditions agreed to by online shoppers.

The retailer, British firm GameStation, added the "immortal soul clause" to the contract signed before making any online purchases earlier this month. It states that customers grant the company the right to claim their soul.

"By placing an order via this Web site on the first day of the fourth month of the year 2010 Anno Domini, you agree to grant Us a non transferable option to claim, for now and for ever more, your immortal soul. Should We wish to exercise this option, you agree to surrender your immortal soul, and any claim you may have on it, within 5 (five) working days of receiving written notification from gamesation.co.uk or one of its duly authorised minions."

GameStation's form also points out that "we reserve the right to serve such notice in 6 (six) foot high letters of fire, however we can accept no liability for any loss or damage caused by such an act. If you a) do not believe you have an immortal soul, b) have already given it to another party, or c) do not wish to grant Us such a license, please click the link below to nullify this sub-clause and proceed with your transaction."

The terms of service were updated on April Fool's Day as a gag, but the retailer did so to make a very real point: No one reads the online terms and conditions of shopping, and companies are free to insert whatever language they want into the documents.

You can read the entire article here.

Privacy Rights Clearinghouse

The Privacy Rights Clearinghouse is a non-profit organization that focuses on consumer information and consumer advocacy.  They have some great information and alerts that you can sign up for at
http://www.privacyrights.org/privacy-alerts

The founder and director of the Privacy Rights Clearinghouse has contributed to several books dealing with consumer rights and privacy, including The Privacy Rights Handbook.

MyMoney.gov

MyMoney.gov is the Federal Government's website dedicated to helping Americans understand more about their money - how to save it, invest it, and manage it to meet their personal goals. You can use the resources on this site to learn how to manage your money better - and we hope you'll share what you learn with others.

There are sections of this website devoted to
Knowing your consumer rights
Scams and Fraud

Financial Reform 101 with Prof. Elizabeth Warren

I was asked by my friends at AFFIL to share this information with you.

Americans for Financial Reform invites you to a special online event!

Financial Reform 101 with Prof. Elizabeth Warren

Tuesday, April 6
4:00 – 4:45 pm Eastern time

AFR is hosting this special discussion with Professor Elizabeth Warren and AFR Director Heather Booth for the general public. It will focus on where we stand in the movement for financial reform, and how everyday citizens can get involved in the fight to rein in the big banks and get the economy back on track. We hope you can join us and promote the webinar far and wide!

You and your members can sign up here:

https://www1.gotomeeting.com/register/482147880

* Find out about reform efforts in Congress—including the Senate bill currently being debated, and the House bill which passed in December
* Learn why we need a Consumer Financial Protection Agency to protect us from abusive financial products
* Ask Professor Warren and Heather Booth your question about financial reform
* Hear about ways to join the fight around the country and online

Space is limited so sign up now!

Special thanks to the National Consumer Law Center for providing the webinar software. Please contact Sarah Byrnes, Sally Brzozowski or Chris Bowers with questions.

Teaching Consumer Law

The Center for Consumer Law is presenting Teaching Consumer Law in the new economy

May 21 - 22, 2010

The preview of info on this event can be found at
http://pubcit.typepad.com/.a/6a00d83451b7a769e20120a8d8a594970b-pi

Maxed Out

I have to get a copy of this movie.  I first heard about it when I was in Florida at a Consumer Empowerment Expo.  Knowledge is power, and from what I hear this movie will open your eyes to the problems of America's debit crisis.

It starts tomorrow! The Call for Financial Reform!

From http://ourfinancialsecurity.org/2010/02/action-center-tell-congress-to-hold-banks-accountable/

Tell Congress to Hold Banks Accountable

Join Americans for Financial Reform and our allies around the country in our first National Senate Call-in Week, March 1 – 4, 2010.

AFR is joined in this effort by our large coalition of organizations, small businesses, and individuals.

As financial reform legislation moves through the Senate, we are asking our Senators to:

• Crack down on irresponsible and reckless behavior by big Wall Street banks and hold them accountable;
• Protect consumers by policing unfair and deceptive practices by credit card companies, mortgage companies, and predatory lenders, and create a strong and independent consumer financial protection agency to get the job done well;
• Close the loopholes that allow secret and risky ‘shadow market’ deals where big banks enjoy the winnings of gambling with our money, and then expect us to pay when they lose.

If you’d like to be a part of this week of action, download the flier (pdf) and contact information by clicking here.

To RSVP for this event on Facebook, click here.

Who to contact

When you are dealing with a Consumer Protection issue, sometimes you just want a list of who to contact.  I found this page at the Consumer Action Website that has a listing of offices by State along with their contact information.
http://www.consumeraction.gov/state.shtml

They also have a pdf of National Consumer Organizations at http://www.consumeraction.gov/pdfs/Consumer_Orgs.pdf

Tell the FDIC to rein in Banks' reckless behavior

From Americans for Fairness in Lending

We know that the greedy, reckless behavior of banks and Wall Street titans created an economic meltdown that has cost millions of American jobs and trillions of dollars in lost wealth. Wall Street bankers continue to gamble with our money, reward themselves with huge bonuses when they win, and take billions in taxpayer bailouts when they lose. The system is rigged: heads they win, tails we lose.The FDIC wants to help change this. But they need to hear from us.

A while back, AFFIL members flooded the Federal Reserve Board with comments about why credit cards needed to be reformed. Together with other activists we generated over 60,000 comments -- and the Fed issued new rules. Later, Congress followed suit and passed the Credit CARD Act which will go into effect this Monday.

Now, we can send the same strong message by sending comments to another government agency, the FDIC. The FDIC---which insures bank deposits---is trying to do something about reckless Wall Street gambling.

The FDIC wants banks that hand out big bonuses for risky behavior to pay higher insurance premiums. Just as a reckless driver pays more for auto insurance, these banks would pay more if they insist on rewarding recklessness. It's only common sense.

The FDIC is taking public comments on the proposed new rule - but the deadline to submit a comment is today, February 18. And banks are pushing hard against it. Many of the comments so far are from bankers. The FDIC needs to hear from regular Americans who got stuck with the bill when these bankers wrecked the economy. Can you let the FDIC know you support the new rule by submitting a comment?

The FDIC takes these public comments very seriously, but usually only receives them from industry insiders. But this is a rule that would affect all of us. The FDIC needs to know that regular folks are watching and that we want accountability for the risky behavior that cost taxpayers billions of dollars.

Go to Americans for Fairness in Lending to have your voice heard

National Consumer Protection Week

News from the FTC

The 12th Annual National Consumer Protection Week (NCPW) is right around the corner: March 7-13. This campaign provides tips and resources at www.consumer.gov/ncpw to help everyone take full advantage of their consumer rights. This year’s theme -- Dollars & Sense: Rated “A” for All Ages -- highlights the importance of using good consumer sense at every stage of life – from grade school to retirement. Check out the NCPW blog for short, timely features about helpful resources, leave a comment, and share your plans for promoting NCPW. The FTC and its NCPW partners will host a Congressional Fair for Members and staff, February 18 from 9:30 am to 11:30 am in the Rayburn Foyer. Get free constituent education resources for town hall meetings in your district. For more information about NCPW and the Fair, contact Derick Rill

The Fight for the CFPA Continues

From the Consumer Law & Policy Blog

The Times reports that President Obama met with Senator Dodd yesterday to push for the CFPA. Over the weekend, Times columnist Gretchen Morgenson wrote a piece, Credit Cards and Reluctant Regulators, about how credit card companies are doing an end run around the Credit CARD Act restraints and how it falls to the OCC, rather than a CFPA to protect consumers. The entire column is worth a read, but here's an excerpt:

[S]uch attempts by card issuers [should] be met with an aggressive regulatory response.

That, however, would be a lot to ask, given that the Office of the Comptroller of the Currency is tasked with enforcing the new rules at most card issuers. This institution not only failed in its oversight of risky practices at Citigroup, to cite just one case — it more recently objected to one of the sound credit card rules the Fed is putting into effect.

“The O.C.C. to the end fought the rules and tried to get huge exceptions, carrying water again for the large banks they were regulating,” said Travis B. Plunkett, legislative director for the Consumer Federation of America. “Now they have to enforce this law that they disagreed with.”

* * *

For years, consumer protection has been of little interest to the major financial regulatory agencies, with the exception of the F.D.I.C.

THERE is no reason to believe that this mind-set will change, given that the same folks who failed to rein in abusive practices years ago are still in place at these shops. And it is just plain boneheaded to entrust consumer protection to agencies run by people who seem to care more about the interests of the financial institutions they regulate.

Opponents of the Consumer Financial Protection Agency, which is part of the financial reform working its way through Congress, say that such a thing smacks of “the nanny state.” But isn’t that preferable to “the pirate state” that brought this economy to its knees?

More CFPA info

From http://www.uspirg.org/consumer-blog/consumer-blog/fight-to-save-the-cfpa-heats-up#1uziu6ds9Km3gdB8dzt3Ug

As newspapers continue to falsely report that the Consumer Financial Protection Agency is dead on arrival in the Senate, supporters of the agency are stepping up efforts to urge Chairman Chris Dodd (D-CT) of the Senate Banking Committee not to knuckle under to the bank lobbyists, who surely do want it dead. CFPA god-mother Elizabeth Warren issued a statement to supporters. [CLICK READ MORE for all links] Americans for Financial Reform issued a news release. Ralph Nader, a Connecticut native, sent Senator Dodd a strong letter supporting CFPA. Center for Responsible Lending made a video explaining why we need a consumer watchdog. Center for Media and Democracy and Banksterusa.org made a cute video urging Senator Dodd to dance with Main Street, not Wall Street. After you watch the video, sign the petition for strong reform and a strong CFPA.

From http://pubcit.typepad.com/clpblog/2010/01/consumer-financial-protection-agency-proposal-said-to-be-in-trouble-in-senate.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ConsumerLawPolicyBlog+%28Consumer+Law+%26+Policy+Blog%29

Consumer Financial Protection Agency Proposal Said to be in Trouble in Senate
by Jeff Sovern

The Wall Street Journal story is here. Senator Dodd is said to be willing to settle for a beefed-up consumer protection agency within another federal agency, perhaps the Treasury. Of course, the Office of the Comptroller of the Currency is such an agency, and it has been more of a hindrance to consumer protection than a help. Settling for such a half-step--and maybe it's not even that--would be a huge disappointment. The Huffington Post has Elizabeth Warren's take on this proposal and Reuters has this story on her reaction.

Consumer Cause of Action

Another great group that I had the pleasure to meet while I was at the Consumer Expo in Florida was Consumer Cause of Action.

Consumer Cause of Action assists consumers against abusive lenders.

When you know your rights, you have options.

There are specific laws and statues that lenders must follow when underwriting and funding a loan. Many loan documents contain a variety of violations with TILA (Truth In Lending Act), and in some cases predatory lending and possible fraud and misrepresentation. In some cases if a homeowner is simply overcharged by only #45 or if the annual percentage rate is only 0.125% higher than what was originally disclosed, there may be a TILA violation.

Our service is very specialized and vital in identifying federal and state regulatory violations. Have one of our qualified forensic loan auditors review your loan documents and determine if your lender has complied with all of the federal and state statutes.

Facing Foreclosure? You have options:

Loan Modification
Litigation
Short Sale
Chapter 13 Bankruptcy

From the FTC

The FTC will mail more than 356,000 checks — totaling approximately $14 million — to reimburse people who were victimized by a fraudulent telemarketing scheme operated by Suntasia Marketing. In a December 2008 settlement, Suntasia and its affiliates agreed to pay more than $11 million in cash to the FTC and turn over various property to be sold. According to the FTC, from 1999 to 2007, Suntasia deceptively marketed a series of memberships in buyers’ and travel clubs to nearly a million consumers nationwide. Press Release Here.

FRAUD FORUM. Proposes developing more effective ways to protect people from scams, including reaching under-served communities; improving victim assistance; training law enforcers and legal services in the use of new technologies to fight fraud; expanding the number of contributors to the Consumer Sentinel Network database; and encouraging more research on fraud victims and scammers. Press release: www.ftc.gov/opa/2009/12/fraud.shtm.

NEW MATERIALS FOR CONSUMERS

YOU ARE HERE. Helps kids protect their privacy, spot frauds and scams, and avoid identity theft. At the new Security Plaza at www.ftc.gov/youarehere, visitors can build a social networking page, see the unintended consequences of posting personal information, and get tips on how to keep their computers safe while they’re online. In the arcade, visitors can play Info Defender 3 and protect Earthlings from Cyclorian invaders who would steal their identities. www.ftc.gov/youarehere.

TIP OF THE MONTH – NATIONAL CONSUMER PROTECTION WEEK (NCPW) 2010

The FTC encourages all Members to participate with other federal, state and local government agencies and consumer protection organizations in the 12th Annual NCPW, March 7-13. This coordinated consumer education campaign provides tips and resources at www.consumer.gov/ncpw to help everyone take full advantage of their consumer rights. This year’s theme -- Dollars & Sense: Rated “A” for All Ages -- highlights the importance of using good consumer sense at every stage of life – from grade school to retirement. The message of NCPW 2010: It’s never too early or too late to become a more informed and empowered consumer. The FTC and its partners are promoting free materials on protecting privacy, managing money and debt, avoiding identity theft, understanding credit and mortgages, and steering clear of frauds and scams. You can download content from www.consumer.gov/ or order free materials at http://bulkorder.ftc.gov. Grab buttons and banners to link to the NCPW site, cut and paste information into your constituent newsletters or blog posts, distribute copies of materials in your offices or use them in a town hall meeting. For more information about how you can promote NCPW in your district, contact Derick Rill at drill@ftc.gov.

Consumer Education

The FTC has a new Consumer Alert, available on its Web site at http://ftc.gov/bcp/edu/pubs/consumer/alerts/alt034.shtm, titled “Money Transfers Can Be Risky Business.” It includes useful information on how consumers can avoid telemarketing and money transfer fraud, including the following tips. Don’t wire money to:

· someone you don’t know, in the U.S. or in a foreign country;

· someone claiming to be a relative in the midst of a crisis and who wants to keep the
request for money a secret;

· someone who says a money transfer is the only form of payment that’s acceptable; or

· someone who asks you to deposit a check and send some of the money back.

Consumers interested in the process of redress administration should call 202-326-3755.

The FTC’s case was investigated with the assistance of the Toronto Strategic Partnership, Project Colt, Project Emptor, and the U.S. Postal Inspection Service. Additional assistance was provided by the Durham Regional Police Service, Ontario, Canada, and the Canadian Anti-Fraud Call Centre (PhoneBusters).

The Toronto Strategic Partnership includes the FTC, the U.S. Postal Inspection Service, Competition Bureau Canada, the Toronto Police Service Fraud Squad – Mass Marketing Section, the Ontario Provincial Police Anti-Rackets Section, the Ontario Ministry of Consumer Services, the Royal Canadian Mounted Police, and the United Kingdom's Office of Fair Trading. Project Colt includes the FTC, the Royal Canadian Mounted Police, Surete du Quebec, City of Montreal Police Service, Canada Border Services Agency, Competition Bureau Canada, U.S. Homeland Security, U.S. Postal Inspection Service, and the Federal Bureau of Investigation. Project Emptor includes the FTC, the Business Practices and Consumer Protection Authority of British Columbia, the Royal Canadian Mounted Police, Competition Bureau Canada, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service.

The Commission vote approving the complaint and proposed consent order was 3-0, with Commissioner Pamela Jones Harbour recused. The complaint and order were filed on October 19, 2009, in the U.S. District Court for the Northern District of Illinois, Eastern Division.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has or is being violated, and it appears to the Commission that a proceeding is in the public interest. A complaint is not a finding or ruling that the defendants have actually violated the law. A stipulated court order is for settlement purposes only and does not necessarily constitute an admission by the defendants of a law violation. Stipulated orders have the force of law when signed by the judge.

Copies of the complaint and stipulated order are available from the FTC’s Web site at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,700 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

The National Consumer Empowerment Conference and Expo

The National Consumer Empowerment Conference and Expo this past weekend in Florida was a wonderful event, and I was so happy to be a part of it. I met some wonderful people, heard some inspiring stories, and made friendships and partnerships that I hope will last a lifetime. In the following weeks I will share some of the stories of the people from this event with you.

This entire event started off as an idea in the head of one inspirational woman, Denise Richardson. Denise took on a battle with a large bank in order to fix the accounting errors and credit problems that they created for her. Her story is truly an inspiration and shows that one person can stand up and make a difference, and that as consumers we need to look out for ourselves because the people we trust with our money, the banks, are not.

While my story is different from Denise's, I do feel a common bond with her . . . fighting the bank for what is right! We were both told that we could not take on the "big bad bank", and we were both told by the bank employees not to worry, and we both learned over the years that what the bank tells you and what they actually do are not always the same thing. We have both gone from being the average woman to someone who is willing to stand up and speak . . . and sometimes yell . . . for the rights of the consumer. Denise is someone I respect, trust and motivates me to do even more in my work in fighting scams.

I would strongly encourage you to read Denise's book, Give Me Back My Credit!

Shawn Mosch
Co-Founder of ScamVictimsUnited.com
There is strength in numbers!

Find us on Twitter, Facebook and more through
http://www.retaggr.com/page/ShawnMosch

Support Scam Victims United by shopping at
http://shopittous.blogspot.com/

One last reminder

I am so sorry that I have not posted as much this week, but I have been so busy getting ready for the National Consumer Empowerment Conference and Expo in Hollywood, Florida this weekend.

http://www.givemebackmycredit.com/blog/2009/08/31/Expo%20Invite.pdf

Both consumers and advocates coming together to share resources, ideas and discuss the issues.

Join us!

I am sure that I will have a lot of great things to share with you from this event.

Raise Your Voices

Consumers Invited to Raise Their Voices at the Consumer Empowerment Conference and Expo on November 21, 2009 in Hollywood, FL

Hollywood, FL, Nov. 9, 2009- Don’t let the big banks dominate the conversation any longer; join with consumers and advocates at the Consumer Empowerment Conference and Expo on November 21st and raise your voice against abusive and predatory lending practices.

“We can’t pick up a newspaper or turn on the radio or the TV these days without hearing yet another story about fraud, identity theft, spiking credit card interest rates, or foreclosure nightmares,” says Denise Richardson, co-host of the event. “The current financial crisis and mortgage industry meltdown has affected this entire nation, but the state of Florida is one of the hardest hit. Now, we finally have a way to do something about it.”

The upcoming event, to be held at the Crowne Plaza in Hollywood Florida, will be hosted by Americans for Fairness in Lending (AFFIL) and Denise Richardson on Saturday, November 21st, 2009 from 1-5 pm. It is free to the public.

“Whether you have questions about fair lending practices, want to know what’s being done about abusive credit card interest rates, or need advice about how to deal with identity theft, this event is for you,” says Richardson. Advocates on site will also be speaking on panels, talking with consumers at tables, and answering questions about credit scores and reports, mortgages, short term loans, medical debt, debt collection, and will be providing information about current legislation that is furthering the fight to create a fair lending system.

Sarah Byrnes, Director of AFFIL says “It is our hope that by attending this event, even more consumers can become part of the solution in the fight against predatory lending and help shine the spotlight on the problems caused by abusive loan products. By working together, we can raise the volume on our collective outrage and the need for better consumer protections.”

This event will give consumers a unique opportunity to interact face-to-face with local and national advocates who are working to reform the lending industry. It’s a chance for people to connect over the issues, speak one on one with consumer attorneys and advocates on issues that matter most to them, and to find new ways to work toward a common goal: a more fair financial system for all.

Confirmed participants include:
Americans for Fairness in Lending
Credit Union Strategic Planning and American Debt Relief Challenge
Florida AARP
Florida CHAIN
Florida PIRG
GiveMeBackMyCredit.com
Identity Theft Victims Support Group of North America
Robert Murphy, Attorney and Law Professor
National Organization of Victims Assistance
Ira Rheingold, Executive Director of the National Association of Consumer Advocates (NACA.net)
Scam Victims United
John Watts, NACA Attorney
… and more! Visit www.givemebackmycredit.com for an updated listing of attendees.

Event details:
Consumer Empowerment Conference and Expo
November 21, 2009
Speakers/panels start at 1:00 pm. Open to the public 1-5 pm
Crowne Plaza, Hollywood Beach Hotel, 4000 South Ocean Drive, Hollywood FL