Consumer News Roundup, Week of August 4th, 2011

Banks are still failing. The FDIC announced three new bank failures last week, making 61 so far this year. [Consumerist]

According to a Missouri federal court, legal document prep service LegalZoom is indeed engaged in the unauthorized practice of law. That means consumers may not be able to buy quite so many cheap legal documents of questionable quality for the foreseeable future. Here’s the LegalZoom decision (PDF). [Thanks, Steph Kimbro!]

What would you pay for a lawyer who can’t make up his mind? One side of lawyering is definitely spotting issues and analyzing consequences. But the real value of a lawyer is counsel—advice on the best course of action to take. Few problems really do come down to a “coin flip.” [Duets Blog]

Americans are actually doing a really good job of paying down debt. In fact, average credit card debt is down over $1,000, from $5,776 in 2009 to $4,679 in the first quarter of 2011. [Consumerist]

I am shocked—SHOCKED—to find out that mortgage companies continue to use robo-signers. [AP, via Consumerist]

Even the Treasury Department thinks the OCC should be doing a little more regulating and a little less protecting when it comes to the big banks. [US PIRG]

And, finally, a flash from the past! Stephen Colbert interviews the “vampire” who successfully foreclosed a Wells Fargo branch: