Protect Consumer Justice » Banking

New rules don’t eliminate all astronomical bank fees

jg — Tue, 06 Jul 2010 23:54:50 +0000

Los Angeles Times: Business columnist David Lazarus reports the new rules on bank fees that took effect this month don’t apply to overdraft fees for scheduled recurring payments, while banks “remain free to enroll customers without permission in overdraft programs covering other transactions, such as payments with checks.”

Congress looks to cut bank overdraft fees

Class action suit filed over unfair overdraft fees

Megabanks face legal action on abusive overdraft fees

What do banks’ new overdraft rules mean for you?

jg — Mon, 14 Jun 2010 21:53:59 +0000

Los Angeles Times: Kathy M. Kristoff reports on new overdraft rules for checking accounts that will go into effect in the next few weeks. “If you are among the 20% of consumers who occasionally overdraw your checking account, you should become familiar with the terms of your bank agreement,” she writes.

Congress looks to cut bank overdraft fees

New rules don’t eliminate all astronomical bank fees

Class action suit filed over unfair overdraft fees

Wells Fargo agrees to reduce racial discrimination in lending

jg — Fri, 09 Apr 2010 21:48:15 +0000

National Law Journal: The NAACP has dropped a lawsuit against Wells Fargo after the bank agreed to take steps to address racial discrimination in its lending policies. Attorney Brian Kabateck, representing the NAACP, said, “This sends a message to the other banks that haven’t been willing to sit down with the NAACP and come up with solutions.”

Tentative ruling issued in NAACP suit alleging lending bias

Ameriquest settles predatory lending suits, but there’s not much money left

Novartis to pay $150+ million for gender discrimination

Class action suit filed over unfair overdraft fees

jg — Fri, 09 Apr 2010 21:10:59 +0000

The Missourian: Erin Handry has the story on a suit filed in Missouri against UMB Bank, alleging the bank has “unfairly manipulated transactions to generate more overdraft fees.”

Megabanks face legal action on abusive overdraft fees

Congress looks to cut bank overdraft fees

New rules don’t eliminate all astronomical bank fees

Megabanks face legal action on abusive overdraft fees

jg — Tue, 16 Mar 2010 21:44:29 +0000

Daily Business Review: A federal judge in Miami has denied requests by the nation’s biggest banks to dismiss a class action suit alleging abusive overdraft fees on debit cards. Julie Kay reports the ruling “keeps alive a closely watched consumer lawsuit that could be worth hundreds of millions of dollars and is shining a national spotlight on what plaintiffs lawyers say are egregious bank practices.”

Class action suit filed over unfair overdraft fees

Congress looks to cut bank overdraft fees

The subprime mess: Class action suit revived in Countrywide case

States push for more power to protect consumers

scott — Tue, 16 Mar 2010 18:27:15 +0000

With Washington digesting Sen. Christopher Dodd’s bill to overhaul financial regulations, the Washington Post did a nice job Monday parsing a movement by state attorneys general to try to carve out their own turf. In effect, they want states to be able to enact consumer protection laws affecting national banks that are stiffer than those established by the federal government.

The issue is referred to as “federal preemption,” which means the feds supersede all other regulators. But critics argue that the nation’s financial meltdown was due in part to weak federal oversight, and that states have a similar responsibility to protect their citizens from predatory bank policies.

The Obama Administration has said yes, that states should be able to enact their own tougher rules. Not surprisingly, banks and their political supporters say no. From the story, by Brady Dennis:

The attorneys general have logged thousands of miles over the past year to lobby lawmakers on the issue, testify before both houses of Congress and appear as “special guests” of President Obama at a White House speech aimed at bolstering consumer protections. They have made their case in letters, speeches and national conference calls, and they have become reliable allies of the administration’s controversial proposal to create a powerful, independent Consumer Financial Protection Agency.

Their argument is simple: Freeing states to enact tougher laws would yield better protections against many of the predatory practices that contributed to the crisis, such as payday lending and subprime mortgages.

As the Dodd bill makes it way through the legislative blender, it’s uncertain how much of what he proposed will survive, and what other elements will get added. At the moment, it looks like Dodd has agreed to leave things the way they are — with the federal regulations holding the trump card.

But U.S. Rep. Barney Frank, D-Mass., has been pushing in the House for more power for the states, which could help propel the attorney generals’ cause.

States could lose rights under federal health care legislation

Congressional Dems say interstate health insurance could offer consumers less protection

Consumer Financial Protection Agency may not happen

College football championship game sponsor makes a lot of money off college students

jg — Thu, 07 Jan 2010 22:07:14 +0000

Houston Chronicle: Tonight’s college football national championship game is sponsored by Citigroup, which, as business columnist Loren Steffy points out, “needed about $50 billion of our money to stay in business and has repaid less than half of it.” Steffy calls the sponsorship of bowl games “another example of finance companies worming their way into the lucrative college market, associating their names with institutions of higher learning….By sponsoring the Bailout Bowl, Citi is using our money to exploit college students.”

UC Irvine Law update: all students find summer jobs

FDIC reports third quarter a difficult one for banks

Mercury Insurance drops $10 mil on Prop. 17 shell game