Tag Archives: CFC
CFC Saved Drivers Over $15 Million On Insurance In 2015
Hartford and Safeco had both sought to boost auto insurance rates by almost 7%, but CFC challenged the rate hike proposals. The result: $5 million in auto policy savings for Hartford customers and $10 million for Safeco customers. In August, GEICO agreed to pay $6 million to settle CFC’s complaint alleging the insurance giant violated civil rights and insurance law by targeting women and unmarried, lower-income motorists with deceptive and inflated automobile insurance rate quotes. It is difficult to calculate motorists’ potential savings resulting from the settlement, but CFC estimates it may reach several million dollars annually. Read More ›
CPUC Reform Veto Vexes Brown Backers
by Jeff McDonald, San Diego Union-Tribune
Richard Holober, executive director of the Consumer Federation of California, has praised Brown in the past for action on privacy, food safety, credit reports and residential care facilities for the elderly. Holober is not happy with the vetoes of CPUC bills. “Until we saw the vetoes, we were keeping our fingers crossed that he would make the Governor’s Office part of the solution,” Holober said. “Now we are really scratching our heads. The loss of public trust, the scandalous collusion is troubling.” Read More ›
CFC’s 2015 Legislative Agenda: Fate Of 2-Year Bills Now Determined
Consumer Federation of California advocated for or against dozens of bills in the state Legislature this year. Click to read the results for several key pieces of legislation. Read More ›
Auto Insurance Company GEICO Pays Out Multi-Million Dollar Settlement
by Tom Vacar, Fox 2 (KTVU Oakland)
The Consumer Federation of California charges that GEICO tried to discourage less preferable customers. Those include those not college-educated, not professional, not executive, a woman, an unmarried person, or those not currently insured. They would not be offered those lowest legal minimum [rates]. Read More ›
Geico Pays $6M To Settle Insurance Discrimination Claim
by Kathleen Pender, San Francisco Chronicle
Geico will pay $6 million to settle a complaint alleging it illegally discriminated against women, unmarried people, blue-collar workers and those without four-year college degrees by showing them costlier auto insurance policies on its Web site than it showed other potential customers. “We believe the primary intent was to drive these folks away from Geico to someone else’s Web site or at least make sure they were paying a lot more money if they didn’t drive them away,” said Richard Holober, executive director of the Consumer Federation of America, the nonprofit advocacy group that filed the complaint. Read More ›
Geico Agrees To $6-Million Settlement In Discriminatory Pricing Case
by Nick Shively, Los Angeles Times
The agreement stems from a petition filed by the Consumer Federation of California asking the department to take action against the Chevy Chase, Md.-based insurer on the grounds that it was discriminating based on occupation, education level and other personal characteristics. The federation had tested Geico’s website and found the insurer misrepresented information for customers who were unmarried, unemployed or employed in a low-wage occupation, had not obtained a four-year college degree and had gaps in insurance coverage, according to the petition documents. Read More ›
GEICO Pays $6 Million To Settle CFC Civil Rights, Deceptive Rate Quote Complaints
GEICO agreed to pay $6 million to settle a Consumer Federation of California complaint alleging the insurance giant violated civil rights and insurance laws by targeting low- and moderate-income women and unmarried motorists with deceptive and inflated automobile insurance rate quotes. “This is an important win for all California motorists,” said CFC Executive Director Richard Holober. “GEICO is paying a price for its unfair practices, and the settlement assures that all good drivers are treated equally, whether rich, poor, or in between. It sets a new industry standard for rate quotes that are accurate and transparent.” Read More ›
AB 573: Students Abandoned By Closure Of Corinthian Colleges Turn To Legislature
AB 573 would give all 13,000 former Corinthian students access to legal, financial and academic counseling to help them deal with some of the obstacles they face, such as retrieving their Corinthian files and determining whether the students are eligible to have their federal education loans discharged. The bill would fund outreach efforts to identify eligible students, and it would facilitate and encourage the transfer of academic credits earned at Corinthian Colleges to the California Community Colleges system. Read More ›
Bill Would Let Companies Secretly Record Some Phone Calls
by Kathleen Pender, San Francisco Chronicle
A bill that would let companies secretly record phone calls with current or former customers for up to 20 seconds was approved by the Assembly Committee on Public Safety Tuesday. … The mockup of the bill that was passed, however, does not say that companies could only record nonconfidential information in the first 20 seconds without consent. [Consumer Federation of California Executive Director Richard] Holober sees no reason companies ever need to secretly record anything. A caller needing a 20-second preamble could simply identify himself or herself, state the nature of the call, request permission to record and then start the recording, he said. Read More ›
Firms Could Record Some Phone Calls Without Consent Under California Bill
by Sharon Bernstein, Reuters
The bill was opposed by numerous advocates for consumers and seniors, including the Consumer Federation of California and the American Civil Liberties Union. “At a time when consumers are more and more concerned about businesses invading their privacy, it is wrong to be considering rolling back an important privacy law,” said Richard Holober, executive director of the Consumer Federation of California, testifying against the bill on Tuesday. Read More ›
Calif. ‘Secret’ Phone Call Recording Bill Advances
by Kurt Orzeck, Law 360
The Consumer Federation of California on Tuesday said its executive director, Richard Holober, told the committee that AB 925’s provision for “secret recordings” would allow companies to manipulate business calls through serial phone calls, effectively defeating the purpose of the notification. The consumer group, along with the American Civil Liberties Union, California Nurses Association, California Federation of Teachers and other organizations, wrote in an Apr. 27 letter to the Assembly committee that the bill “would sacrifice well-established privacy interests. … AB 925 would eliminate an important and non-burdensome privacy protection.” Read More ›
Assembly Committee Approves Secret Recordings Of Cell Phone Calls
SACRAMENTO – The Assembly Committee on Public Safety voted 5-2 today to allow businesses to secretly record cell phone calls with customers under Assembly Bill 925 (Evan Low, D-Campbell), undermining a longstanding legal prohibition on such recordings in California. The committee’s two Republicans voted No on AB 925, taking a stand against weakening a key consumer protection. Low and his fellow Democrats approved the bill – a vote for secret recordings. Read More ›
AB 925 Lets Debt Collectors, Subprime Lenders, Others Secretly Record Phone Calls
SACRAMENTO – A coalition of California consumer, privacy, senior, student, labor and immigrant advocates urge the defeat of Assembly Bill 925 (Evan Low, D-Campbell), which would eliminate a longstanding prohibition against secret recordings of consumer cell phone calls by subprime lenders, debt collectors, student loan companies, hotels, health care providers, retailers and other businesses. Key backers of AB 925 include AT&T, Verizon and high-tech corporate lobbyists. Read More ›