Tag Archives: Deceptive

For-Profit Colleges Accused Of Fraud Still Receive U.S. Funds

by Patricia Cohen, The New York Times

Young African-American man

For-profit schools enroll about 12 percent of the nation’s college students, yet they account for nearly half of student loan defaults. … Kaplan [Career Institute’s] schools, including its online California law school, where only one in five students graduates, received $776.3 million worth of federal student loans and grants last year. Because it lacks bar association accreditation, most graduates outside California are not allowed to take a bar exam. Read More ›

CFPB May Let You Sue Your Bank Instead Of Going To Arbitration

cordray-sm

“Consumers should not be asked to sign away their legal rights when they open a bank account or credit card,” CFPB Director Richard Cordray said. “Companies are using the arbitration clause as a free pass to sidestep the courts … ” In a first step toward potential new rules, the CFPB is publishing an outline of proposals under consideration in preparation for forming a small business review panel to gather feedback from industry stakeholders. … [New rules would apply to] credit cards, checking and deposit accounts, prepaid cards, money transfer services and several types of loans. Read More ›

CFPB To Consider Rules That Would Revoke Banks’ “License To Steal”

by Chris Morran, Consumerist

cfpb 320 x 190

Earlier this year, the Bureau released its first report on arbitration in the financial products sector. It found that while the clauses are incredibly prevalent — 92% of prepaid debit cards and 88% of cellphone contracts use them — most consumers are completely unaware if they are affected. According to the CFPB, of those Americans constrained by arbitration agreements, fewer than 7% understood that this meant they had given up their right to file a lawsuit. “Consumers should not be asked to sign away their legal rights when they open a bank account or credit card,” said CFPB Director Richard Cordray in statement. Read More ›

L.A.-Based Auto Lender Must Pay $48M In Fines, Refunds For Illegal Collections

by Ashlee Kieler, Consumerist

cfpb 320 x 190

Westlake Services, which specializes in purchasing and servicing auto loans, including many subprime and near-subprime loans, purchased loans from auto dealers nationwide. Wilshire Consumer Credit, a wholly owned subsidiary of Westlake, offers auto title loans directly to consumers, largely via the Internet, and services those loans. … In addition to deceiving consumers with illegal debt collection practices, the CFPB found Westlake and Wilshire violated consumer financial protection laws with advertising, customer relations and account servicing. Read More ›

California Now Allows Firms To Tell Consumers A ‘Made In USA’ Lie

by David Lazarus, Los Angeles Times

MUSA-sm

Gov. Jerry Brown signed a bill, SB 633, this month that allows California companies to say “made in America” as long as their products are mostly made in America — 90% American-made, to be precise. … Richard Holober, executive director of the Consumer Federation of California, said manufacturers never had trouble in the past meeting the state’s made-in-America rule. Loosening the state’s 100% standard, he said, puts “those businesses who go the extra mile to keep jobs and manufacturing in the USA at a disadvantage” and “gives an advantage to companies that cut corners.” Read More ›

Volkswagen Test Rigging Follows A Long Auto Industry Pattern

by Danny Hakim and Hiroko Tabuchi, The New York Times

car on fire

The universe of automotive scandals has been a broad and often tragic one, including Ford’s 1978 recalls of 1.5 million Pintos after evidence emerged that its gas tanks were prone to catch fire during impacts. The Chrysler Corporation was indicted in 1987 on charges of disconnecting the odometers of 60,000 cars used by executives and then selling them as new. The Ford-Firestone scandal that started in the late 1990s was linked to 271 deaths. And more than 23 million cars have been recalled by 11 automakers over airbags made by Takata that could violently rupture in an accident. Read More ›

Auto Insurance Company GEICO Pays Out Multi-Million Dollar Settlement

by Tom Vacar, Fox 2 (KTVU Oakland)

GECKO ON KTVU

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 gecko in trademark car

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

Mike Konopacki / CFC

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

Mike Konopacki / CFC

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 ›

1 2 3 4 5 6