Credit cards from Amazon, Office Depot, Staples, Best Buy, Toys R Us have highest APRs
by Chris Morran, Consumerist
The average APR on credit cards from America’s largest retailers has climbed more than 2 percentage points to 23.23 percent. High rates make a difference. A consumer who puts a $1,000 balance on the average retail credit card and makes only the minimum payments would need 73 months to pay off the balance and would incur $840 in interest fees; at 10.37 percent, the interest would be just $232 – and the loan would be paid off 17 months sooner. Read More ›
Uber targets lawmaker behind insurance bill
by Cheryl Miller, The Recorder (San Francisco)
Uber Technologies Inc. sent mailers to constituents of Assemblywoman Susan Bonilla, D-Concord, whose AB 2293 would force transport network drivers to carry $750,000 in liability insurance during the so-called Period One phase when they’ve turned on their apps but haven’t been matched yet with a rider. It’s not uncommon for interest groups to flood constituents’ mailboxes and answering machines in an attempt to pressure key lawmakers on a big issue. But a single company going directly after a bill author is a particularly aggressive move. Read More ›
Overcompensation: Tying corporate taxes to CEO pay
by Gary Cohn, Capital & Main
Under SB 1372, if a CEO makes 100 times more than a typical worker in the same firm, the corporate tax rate would be reduced to 8 percent from the current 8.84 percent. At a company where the chief executive makes only 25 times as much as a typical worker, the tax rate would be reduced to seven percent. But at a company where the CEO’s compensation is 400 times as much as the median worker’s, the tax rate would increase to 13 percent. It won’t be easy for SB 1372 to get the required two-thirds majority. Read More ›
SB 1188: Manufacturers Not Liable For Selling Junk?
Courts have let business off the hook for hazy TV screens, overheating computers, malfunctioning washing machines, and more. Senate Bill 1188 holds corporations accountable – but it faces fierce industry opposition. Read More ›
SB 383: Battle For Privacy In Online Purchases Falters After 2-Year Fight
CFC sponsored the bill to restore privacy protections, permitting online businesses to collect only a customer’s zip code and other limited information necessary to combat fraud or identity theft. Apple is leading the opposition; several industry lobbying organizations lined up against the bill. Senator Jackson plans to take up SB 383 for a Senate Floor vote in January 2014. Read More ›
2013-14 legislative session: The final countdown begins
Update: See CFC’s updated list of priority bills in the session’s final weeks. JULY 29 – From lending reforms, protections for seniors and product labeling requirements to smartphone kill switches and other issues, several high-priority bills for the Consumer Federation of California (CFC) await final action when lawmakers … Read More ›
EWG-Duke study finds five times as much cancer-causing fire retardants in children as in mothers
by Environmental Working Group, press release
Environmental Working Group researchers teamed up with scientists at Duke University to test 22 mothers and 26 children. The results were disturbing: the urine in every mother and child tested yielded evidence of exposure to TDCIPP, a cancer-causing fire retardant. In the children, the average concentration of a chemical biomarker left when TDCIPP breaks down was nearly five times the average in the mothers. Read More ›
Down to the wire: Lawmakers have 4 weeks to act on assisted living reforms
by Polly Stryker, The California Report
Fifteen bills are making their way through the Legislature, and the month of August is key. If passed, the package of legislation would bring changes that include: increasing possible fines from $150 to $15,000; mandating annual inspections; creating a Resident Bill of Rights; mandating liability insurance; and creating a better online database for consumers. Ultimately, it’s up to Gov. Brown to sign or veto bills that make it to his desk. Read More ›
Wireless carriers are victims of phone cramming too, they just make billions of dollars instead of losing it
by Ashlee Kieler, Consumerist
A new report and hearing on the subject by the Senate Committee on Commerce Science and Transportation revealed that third-party billing on wireless phone bills has evolved into a billion-dollar industry for carriers such as AT&T, Sprint, Verizon and T-Mobile. Most wireless carriers were aware of the growing cramming problem at least six years ago, but continued to retain lax oversight and self-regulation policies leaving ample opportunity for scammers to strike. Just this week, the FTC announced a series of recommendations that could slow, or even cease, the practices of cramming and direct carrier billing. Read More ›
BofA ordered to pay $1.3 billion over Countrywide lending program
by E. Scott Reckard, Los Angeles Times
A New York judge ordered Bank of America to pay nearly $1.3 billion in penalties in a civil fraud case involving a mortgage program that Countrywide had nicknamed “the hustle,” which fast-tracked the processing of mortgage applications. After a monthlong trial, a jury decided last fall that BofA and Countrywide were liable for selling thousands of bad loans to Fannie Mae and Freddie Mac. The lending program fast-tracked mortgage applications from August 2007 through May 2008. Shortly thereafter, Bank of America bought Countrywide, the nation’s largest home lender at the time. Read More ›
PG&E accused of obstructing justice in San Bruno blast probe
by Jaxon Van Derbeken, San Francisco Chronicle
A federal grand jury indicted PG&E Tuesday on a total of 28 counts stemming from the San Bruno natural-gas explosion that killed eight people and destroyed 38 homes. The utility could be punished by fines of as much as $1.3 billion, based on its profit associated with the alleged criminal conduct. That would be on top of $2.5 billion in possible penalties associated with state regulatory violations. Read More ›
GI Bill loophole keeps 4 major for-profit educators from violating law
by Aaron Glantz, Center for Investigative Reporting
Senate investigators found eight of the top 10 recipients of GI Bill funds were for-profit colleges. In addition, the report said, “the amount of taxpayer dollars paying for veterans to attend for-profit colleges meanwhile has skyrocketed from $640 million in the 2009-10 school year to $1.7 billion last year.” The University of Phoenix’s San Diego campus has received more GI Bill money than any brick-and-mortar campus in America. The school’s overall graduation rate is less than 15 percent, according to the U.S. Department of Education. Read More ›
Nation’s top 10 consumer complaints
by Consumer Federation of America and the North American Consumer Protection Investigators, press release
Do-not-call violations and other telemarketing abuses were the fastest-growing complaints in 2013, according to the latest annual survey of state and local consumer protection agencies conducted by Consumer Federation of America and the North American Consumer Protection Investigators. CFA and the NACPI surveyed general-purpose consumer protection agencies at the city, county and state level to indentify the top 10 types of complaints, the fastest-growing, and the worst (admittedly a judgment call), as well as consumer agencies’ biggest achievements and challenges. Read More ›