Consumer Action

Last updated
Consumer Action
Formation1971
Location
  • San Francisco, Los Angeles, Washington, DC, OR, United States;
Exec. Dir.
Ken McEldowney
Website www.consumer-action.org

Consumer Action is a nonprofit, consumer education and advocacy center, serving consumers in the United States. Founded in 1971, the mission of Consumer Action is to help individual consumers assert their rights in the marketplace and to advance pro-consumer industry-wide change for the benefit of all. Consumer Action primarily achieves that mission by providing multi-lingual education, outreach, and advocacy services.

Contents

It has offices in San Francisco, Washington, D.C., and Los Angeles.

Mission

Consumer Action's mission is to educate and advocate for consumers, publish and disseminate free multilingual consumer educational materials and fight for laws and regulations that benefit consumers — not large businesses and corporations. [1]

Overview

Consumer Action's frequent focus is consumer credit—and the related areas of credit cards, banking and finance, money management, and pricing; as well as health, housing, scams, fraud, privacy, and more. Consumer Action is well known for its annual Credit Card Survey. [2] [3]

Consumer Action works in collaboration with numerous consumer protection, consumer advocacy organizations, and coalitions to file commentary on government legislation and briefs, such as Fair and Reasonable Fee for Credit Score Disclosure [4] and for the publication of education and informational resources, such as Consumer Privacy Guide [5] published jointly with: the Center for Democracy & Technology, Common Cause, the National Consumers League, and the Privacy Rights Clearinghouse.

Consumer Action is a consumer protection, education, and advocacy organization, as quantified by the Urban Institute's National Center for Charitable Statistics. [6] It is often cited in consumer education campaigns [7] and interviews, like ABC's the View from the Bay. [8]

Credit Card Survey

In June 1986, in collaboration with the Consumer Federation, Consumer Action introduced the Consumer Action Credit Card Survey, an annual survey of credit cards, banks, and lending practices. The survey has become well known for highlighting hidden practices of credit card vendors that are anti-consumer.

The annual survey has highlighted predatory lending practices; and has been used to gain the attention of lawmakers. Don Oldenburg, of The Washington Post sites the highlighting of questionable lending and payment practices as one of the resources used for Congress and federal bank regulators to these questionable and costly practices.

Congress, a House bill called "The Consumer Credit Card Protection Act" would prohibit arbitrary universal default penalties. Another bill, "The Loan Shark Prevention Act," would establish a fair cap on credit card interest rates. [9]

The survey has been quoted and used local and national sources, such as Smart Money, [10] CNN Money, [11] and The New York Times . [12]

See also

Related Research Articles

<span class="mw-page-title-main">Gramm–Leach–Bliley Act</span> Act of the 106th United States Congress (1999–2001)

The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, is an act of the 106th United States Congress (1999–2001). It repealed part of the Glass–Steagall Act of 1933, removing barriers in the market among banking companies, securities companies, and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company. With the passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. Furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton.

<span class="mw-page-title-main">Identity theft</span> Deliberate use of someone elses identity

Identity theft, identity piracy or identity infringement occurs when someone uses another's personal identifying information, like their name, identifying number, or credit card number, without their permission, to commit fraud or other crimes. The term identity theft was coined in 1964. Since that time, the definition of identity theft has been legally defined throughout both the U.K. and the U.S. as the theft of personally identifiable information. Identity theft deliberately uses someone else's identity as a method to gain financial advantages or obtain credit and other benefits. The person whose identity has been stolen may suffer adverse consequences, especially if they are falsely held responsible for the perpetrator's actions. Personally identifiable information generally includes a person's name, date of birth, social security number, driver's license number, bank account or credit card numbers, PINs, electronic signatures, fingerprints, passwords, or any other information that can be used to access a person's financial resources.

Consumer Reports (CR), formerly Consumers Union (CU), is an American nonprofit consumer organization dedicated to independent product testing, investigative journalism, consumer-oriented research, public education, and consumer advocacy.

<span class="mw-page-title-main">Payday loan</span> Short-term unsecured loan

A payday loan is a short-term unsecured loan, often characterized by high interest rates. These loans are typically designed to cover immediate financial needs and are intended to be repaid on the borrower's next payday.

GE Capital was the financial services division of General Electric. Its various units were sold between 2013 and 2021, including the notable spin-off of the North American consumer finance division as Synchrony Financial. Ultimately, only one division of the company remained, GE Energy Financial Services, which was transferred to GE Vernova when General Electric was broken up.

<span class="mw-page-title-main">Fair Credit Reporting Act</span> U.S. federal legislation

The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., is federal legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. It was intended to shield consumers from the willful and/or negligent inclusion of erroneous data in their credit reports. To that end, the FCRA regulates the collection, dissemination, and use of consumer information, including consumer credit information. Together with the Fair Debt Collection Practices Act (FDCPA), the FCRA forms the foundation of consumer rights law in the United States. It was originally passed in 1970, and is enforced by the U.S. Federal Trade Commission, the Consumer Financial Protection Bureau, and private litigants.

A credit history is a record of a borrower's responsible repayment of debts. A credit report is a record of the borrower's credit history from a number of sources, including banks, credit card companies, collection agencies, and governments. A borrower's credit score is the result of a mathematical algorithm applied to a credit report and other sources of information to predict future delinquency.

<span class="mw-page-title-main">Consumer Federation of America</span> US non-profit organization

The Consumer Federation of America (CFA) is a non-profit organization founded in 1968 to advance consumer interests through research, education and advocacy.

<span class="mw-page-title-main">Credit</span> Financial term for the trust between parties in transactions with a deferred payment

Credit is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately, but promises either to repay or return those resources at a later date. The resources provided by the first party can be either property, fulfillment of promises, or performances. In other words, credit is a method of making reciprocity formal, legally enforceable, and extensible to a large group of unrelated people.

<span class="mw-page-title-main">Fair and Accurate Credit Transactions Act</span> U.S. federal law

The Fair and Accurate Credit Transactions Act of 2003 is a U.S. federal law, passed by the United States Congress on November 22, 2003, and signed by President George W. Bush on December 4, 2003, as an amendment to the Fair Credit Reporting Act. The act allows consumers to request and obtain a free credit report once every 12 months from each of the three nationwide consumer credit reporting companies. In cooperation with the Federal Trade Commission, the three major credit reporting agencies set up the web site AnnualCreditReport.com to provide free access to annual credit reports.

Universal default is a now-banned practice in the United States financial services industry whereby a creditor would change the terms of a loan from the normal terms to the default terms when that lender is informed that their customer has defaulted with another unrelated lender, even though the customer has not defaulted with the first lender.

HSBC Finance Corporation is a financial services company and a subsidiary of HSBC Holdings. It is the sixth-largest issuer of MasterCard and Visa credit cards in the United States. HSBC Finance Corporation was formed from the legal entity that had been known as Household International—shortly after Household International settled for US$486 million in charges pertaining to predatory lending, after burning through $389 million in legal fees and expenses—and is now expanding its consumer finance model via the HSBC Group to Brazil, India, Argentina and elsewhere.

A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bureaus.

<span class="mw-page-title-main">Credit card</span> Card for financial transactions from a line of credit

A credit card is a payment card, usually issued by a bank, allowing its users to purchase goods or services or withdraw cash on credit. Using the card thus accrues debt that has to be repaid later. Credit cards are one of the most widely used forms of payment across the world.

Bank regulation in the United States is highly fragmented compared with other G10 countries, where most countries have only one bank regulator. In the U.S., banking is regulated at both the federal and state level. Depending on the type of charter a banking organization has and on its organizational structure, it may be subject to numerous federal and state banking regulations. Apart from the bank regulatory agencies the U.S. maintains separate securities, commodities, and insurance regulatory agencies at the federal and state level, unlike Japan and the United Kingdom. Bank examiners are generally employed to supervise banks and to ensure compliance with regulations.

<span class="mw-page-title-main">Credit CARD Act of 2009</span>

The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 is a federal statute passed by the United States Congress and signed by U.S. President Barack Obama on May 22, 2009. It is a comprehensive credit card reform legislation that aims "to establish fair and transparent practices relating to the extension of credit under an open end consumer credit plan, and for other purposes." The bill was passed with bipartisan support by both the House of Representatives and the Senate.

Unfair, Deceptive, or Abusive Acts or Practices is a proposal for bank regulation in the United States under Federal Reserve Regulation AA. The Board of Governors of the Federal Reserve System announced in a press release on Saturday, May 2, 2008, that the proposed rules, "prohibit unfair practices regarding credit cards and overdraft services that would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances." Provisions addressing credit card practices aim to enhance protections for consumers who use credit cards and improve the credit card disclosures under the Truth in Lending Act:

Nessa Feddis is an American attorney and banking industry spokesperson.

<span class="mw-page-title-main">Consumer Financial Protection Bureau</span> United States government agency

The Consumer Financial Protection Bureau (CFPB) is an independent agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors, and other financial companies operating in the United States. Since its founding, the CFPB has used technology tools to monitor how financial entities used social media and algorithms to target consumers.

<span class="mw-page-title-main">LendUp</span> American financial technology company

LendUp was an American online direct lender. It offered payday loans, installment loans, and credit cards to consumers with low credit scores using publicly available data to assess creditworthiness. The company referred to its customers as “the emerging middle class.” LendUp also issued credit cards in partnership with Tom Steyer's Beneficial State Bank.

References

  1. ↑ "Congress.org - Consumer Action". Archived from the original on 2008-11-30. Retrieved 2009-05-14.
  2. ↑ The Consumerist, http://consumerist.com/5028980/2008-consumer-action-credit-card-survey-declares-credit-cards-really--evil
  3. ↑ Reading the fine print on credit card rates, ABC 7, https://abc7news.com/archive/6283304/
  4. ↑ Federal Trade Commission, Proposed Rules, http://www.ftc.gov/os/comments/creditscorefees/EREG-000003.htm Archived 2009-05-13 at the Wayback Machine
  5. ↑ Consumer Privacy Guide, http://www.consumerprivacyguide.org Archived 2009-05-09 at the Wayback Machine
  6. ↑ "Archived copy". Archived from the original on 2009-03-06. Retrieved 2009-05-14.{{cite web}}: CS1 maint: archived copy as title (link)
  7. ↑ Tom Abate, San Francisco Chronicle, 23 May 2003, S.F. consumer group tackles payday loans
  8. ↑ ABC, Avoid Being Considered a Credit Risk
  9. ↑ Oldenburg, Don, The Washington Post , March 2006, Time Out on Cash Back
  10. ↑ "Personal Finance".
  11. ↑ "Top tips: Crack the credit card code - Jan. 10, 2008".
  12. ↑ The New York Times , 20 December 1998, PRACTICAL TRAVELER; Card Users Face Increasing Fees
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.