Protect Consumer Justice » credit cards

Crafts store chain accused of failing to protect consumer financial data

jg — Wed, 01 Jun 2011 17:41:27 +0000

Chicago Tribune: Becky Yerak reports Michaels Stores Inc., operators of nearly 1,000 crafts stores in the U.S., “has been hit with two lawsuits seeking class-action status by consumers alleging that the arts and crafts retailer failed to safeguard shoppers’ credit and debit card information and PIN numbers.” The retailer had earlier disclosed its checkout PIN pads had been tampered with in 20 states. In the latest lawsuit, a woman said her $18.16 purchase at an Illinois store led to more than $1,000 in unauthorized transactions.

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CA Supreme Court rules retailers can’t ask consumers for ZIP codes

jg — Thu, 10 Feb 2011 21:12:31 +0000

Los Angeles Times: Maura Dolan reports, “California merchants may not ask customers who pay with credit cards for their ZIP codes, the California Supreme Court decided unanimously Thursday.” The court ruled the ZIP code is part of an address and as such is protected under the state’s Credit Card Act.

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Banks find more ways to stick their hands in consumers’ pockets

jg — Tue, 09 Nov 2010 00:43:49 +0000

The Credit Card Accountability Responsibility and Disclosure Act of 2009 was enacted to protect consumers from the rapacious behaviors of banks out to maximize their income from various fees charged to account holders and cardholders. Now, according to Wall Street Journal reporter Jessica Silver-Greenberg, banks have come up with new ways to squeeze fees out of consumers while staying within the law.

Some are raising minimum payments on certain customers’ accounts in order to increase late penalties. Others are ramping up credit-protection insurance programs and charging customers for coverage without permission. Still others are pushing aggressively into high-fee prepaid cards, which are exempt from most of the new rules.

Banks already have rolled out a slew of new fees since the passage of the Credit Card Accountability Responsibility and Disclosure Act of 2009. Among other things, they have revived annual fees; shortened billing cycles; levied new charges on cards with low credit limits; increased balance-transfer, cash-advance and foreign-exchange fees; and begun aggressively marketing “professional cards” not subject to the restrictions of the Card Act.

Silver-Greenberg’s excellent report should be read in its entirety. And be sure to follow this advice she offers:

Before signing up for a new card offer, borrowers should find out whether services like payment protection are automatically included. And once borrowers start using a card, they should pore over their statements each month in search of billing changes. If they notice a higher minimum payment or a new fee, they should contact the card issuer immediately, say consumer advocates.

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Companies that claim to settle credit card debts face new rules

jg — Fri, 30 Jul 2010 21:44:09 +0000

New York Times: The Federal Trade Commission has approved new restrictions on companies that say they will help reduce or settle consumer credit card debts, reports Edward Wyatt. FTC chiarman Jon Leibowitz said the new rules “will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, upfront fees.”

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Capital One challenged on increasing “fixed” interest rates

jg — Thu, 22 Jul 2010 23:39:15 +0000

Reuters: A federal appeals court in California reinstated a lawsuit against Capital One, after the company more than doubled the interest rate it charged a cardholder who thought she had a “fixed” APR. Reporter Jonathan Stempel quoted plaintiffs attorney Behram Parekh as saying, “Consumers were being misled by having the word ‘fixed’ in their agreements, when the card company could change the terms at will.”

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Chase cardholder fights back after accounts closed

jg — Tue, 20 Jul 2010 21:43:18 +0000

Los Angeles Times: Business columnist David Lazarus tells the story of a San Diego man who decided to fight back after Chase told him it was closing his credit card accounts. The company’s failure to respond to his lawsuit in a timely manner may cost it a $2 million judgment. “Maybe next time Chase will take it more seriously when a customer stands up for himself and demands a little justice,” Lazarus writes.

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What Congress has (and hasn’t) done for consumer financial reform

jg — Fri, 25 Jun 2010 21:05:29 +0000

New York Times: Ron Lieber and Tara Siegel Bernard present “a roundup of some of the biggest consumer issues that members of Congress addressed and where they ended up,” including the creation of the Consumer Financial Protection Bureau, new protections for mortgage purchasers, and changes that affect credit and debit card use.

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