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Category Archives: Consumer Law News

What Will the New Credit Card Legislation Do For You?

Published on July 28, 2009 by Kathleen Munden

On May 22, 2009, President Obama signed into law the Credit Card Accountability, Responsibility, and Disclosure Act. As noted in our blog article on July 28, 2009, certain provisions of that act go into effect in 2010 concerning the disclosures that must be made on credit card statements. Other provisions that regulate how credit [...]

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Arbitration Awards in Jeopardy After AAA, NAF Withdrawals

Published on July 24, 2009 by Robert A. Kraft

In a blog at Lawyers USA, Sylvia Hsieh wrote, “In a stunning turn of events, the kingpin of consumer debt arbitration, the National Arbitration Forum, has been knocked out of the consumer debt business amidst allegations of consumer fraud, throwing into jeopardy hundreds of thousands of arbitration awards.” The ink “was barely dry on the [...]

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Democrats Step Up Fight for Consumer Financial Protection Agency

Published on July 23, 2009 by Robert A. Kraft

The Wall Street Journal reports Democrats “are stepping up the fight” over the proposed Consumer Financial Protection Agency “amid evidence that business groups are making headway in their campaign against the proposal.” Top White House officials and congressional Democrats “pressed their case” for the new agency on Wednesday, “hoping to refocus the debate on the [...]

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Credit Card Companies Racing To Increase Profits Before Reform Legislation Becomes Law

Published on July 19, 2009 by Kathleen Munden

Even though Congress passed sweeping credit card reform legislation this month, it does not go into effect for almost a year. That gives credit card companies plenty of time to devise new methods for squeezing profits out of consumers while they still have free rein.
For instance, JP Morgan Chase recently raised minimum payments on many [...]

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Texas Attorney General Website Offers Valuable Consumer Information

Published on July 14, 2009 by Kathleen Munden

The Attorney General is the official in the State of Texas who is responsible for protecting consumers and businesses by enforcing the Deceptive Trade Practices Act and other consumer and business protection legislation. The website of the Office of the Attorney General contains a wealth of information for consumers, along with complaint forms, hotline numbers, [...]

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Banks Vow to Fight Consumer Protection Agency

Published on July 6, 2009 by Kathleen Munden

Banking lobbyists are already working to curb or eliminate the Consumer Financial Protection Agency proposed by President Obama. The Agency could be empowered to curtail or ban a host of lucrative bank practices, such as ballooning mortgages, excessive credit card interest, and surprise overdraft fees.
The Associated Press reports that the Obama administration believes such safeguards [...]

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Change to Foreclosure Law to Benefit Renters

Published on June 23, 2009 by Robert A. Kraft

The House and Senate have each passed bills providing that any current lease survives a foreclosure unless the new owner intends to live in the property. Currently, in many states, a landlord has no obligation to notify tenants of pending foreclosure actions, and a renter’s lease becomes void the moment a foreclosure sale is completed. [...]

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Obama Administration to Propose Creation of New Consumer Financial Protection Agency

Published on June 17, 2009 by Robert A. Kraft

McClatchy news bureau reported, “The Obama administration is proposing the broadest changes in financial regulation since the Great Depression, calling for the elimination of some bank regulators and giving the Treasury Department and Federal Reserve vast new authority.” Among the changes, the administration “will propose creating a special commission that would regulate consumer credit, watching [...]

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1st Quarter 2009 Wiped Out $1.3 Trillion for Americans

Published on June 12, 2009 by Robert A. Kraft

Today’s Washington Post has a rather frightening article about the effect, to date, of the recession on U.S. consumers. Here are the opening paragraphs of the story:
The brute force of the recession earlier this year turned back the clock on Americans’ personal wealth to 2004 and wiped out a staggering $1.3 trillion as home values [...]

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Trade School and Online University Scams

Published on June 10, 2009 by Kathleen Munden

In times of economic difficulty, many people decide to bolster their qualifications by seeking more education. Unfortunately, where there is money and desperation involved, scam artists are the first ones to recognize a promising new trend.
Over the last six months, enrollment in community colleges has increased by 26%. [...]

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Credit Card Bill Signed Into Law by President Obama

Published on May 23, 2009 by Robert A. Kraft

On May 22, 2009, President Obama signed into law an act designed to protect consumers from surprise credit card charges. Although opposed by many financial companies, Obama strongly endorsed the bill, and it passed Congress with board bi-partisan support.
Obama made it clear that he did not back the changes with the intention of assisting those [...]

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U.S. House Passes “Credit Cardholders Bill of Rights Act”

Published on May 2, 2009 by Kathleen Munden

On May 1, 2009, the House of Representatives passed the Credit Cardholders Bill of Rights Act of 2009. The bill received strong bipartisan support, passing by a vote of 357-70, with 252 Democrats and 105 Republicans voting for the measure.
The bill includes provisions that:
–          Bar retroactive rate increases on existing balances except for those more [...]

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Credit Card Charge-Offs Hit Record High

Published on May 1, 2009 by Robert A. Kraft

According to the debt research firm CreditSights, the number of credit card loans deemed uncollectible and delinquent has reached record levels. In March 2009, uncollectible and written-off accounts reached an 8.6% annual rate, compared to 5.3% a year earlier. Delinquent loans reached 6%.
The rise in uncollectible debt is tied to the unemployment rate, which reached [...]

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New Regulations Concerning Payday Loans

Published on April 15, 2009 by Kathleen Munden

As of early April 2009, the Texas Legislature and the U.S. Congress are both considering legislation to regulate payday lenders. Last week, state senators announced pending bills that would establish oversight of the largely unregulated payday loan industry. The proposals include licensing requirements, a 36% limit on interest [...]

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