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Randall Ryder

Bank of America Eliminates Overdraft Fees for Debit Cards

March 18, 2010

Consumers have complained for years about being charged $35 overdraft fees for a $2 purchase. At least one bank, Bank of America (BoA), has listened and will eliminate overdraft fees on debit card purchases.
Starting on June 19 for new customers, and in early August for existing customers, customers who attempt to use a debit card [...]

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Minnesota Attorney General Sues 6 Debt Settlement Companies

February 22, 2010

Minnesota Attorney General (AG) Lori Swanson has sued 6 debt settlement companies on the grounds they were not licensed to do business in Minnesota and overcharged consumers by hundreds of thousands of dollars. She commented:
“People who are swimming in debt are often desperate for a life preserver, but they should know that debt settlement companies [...]

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Facebook Page Makes Wells Fargo Waive Fees

February 16, 2010

Wells Fargo has bowed to angry internet users and has agreed to refund and waive 3% transaction fees charged on certain donations to Haiti.
College student Heather Lynn was angered by Wells Fargo’s insistence on charging a 3% foreign transaction fee on certain types of donations to Haiti. Lynn created a Facebook page called Wachovia=Fail, which [...]

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What Debt Collectors Can and Cannot Do

January 26, 2010

The Federal Trade Commission has posted a video on their website and YouTube outlining consumers’ rights when contacted by debt collectors.
If you have been contacted by a debt collector, watching the video is a good place to start learning about your rights.
(photo: bisgovuk)

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Attorney Refuses to Pay Bank of America Credit Card Debt

January 20, 2010

California attorney Ben Pavone refuses to pay his credit card debt until Bank of America lowers his interest rate. Pavone has also threatened to sue Bank of America if they try and ruin his credit because of his non-payment.
Pavone asked BOA for an increased credit limit a few months ago, when he needed the extra [...]

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Judge Blasts Bank of America in SEC Trial

January 14, 2010

Note to banks accused of misleading investors: hypocritical defenses will not fly.
Bank of America told its investors that it would not pay bonuses to Merrill Lynch executives as part of the merger. At the same time, BOA authorized Merrill Lynch to pay up to $5.8 billion in discretionary year-end bonuses; $3.6 billion in bonuses were [...]

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Sprint Owes $$$ to Minnesota Customers

January 11, 2010

Because of a recent settlement between the Minnesota Attorney General’s office and Sprint, customers who think they were misled by Sprint about their contract can apply to Sprint for refunds. Sprint warns, however, that merely applying for a refund does not ensure you will get one.

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Citigroup Says Bah Humbug

December 17, 2009

Despite accepting taxpayer’s bailout money, Citigroup refuses to show sympathy to consumers.
A local parking attendant bought a television on credit with Citigroup back in 2007. At the time of purchase, the receipt mentioned a deferred interest promotional offer, with no further explanation on the receipt or from the salesperson.
The consumer made monthly payments well in [...]

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Credit Card Companies Make it Hurt Before New Laws

December 10, 2009

Despite the new credit card laws go into effect in February, credit card companies are putting the financial hurt on customers.
According to a report from Safe Credit Card Project:

99.7% of bank cards allowed card issuers to boost rates on outstanding balances.
90% of bank cards increased their penalty rates.
Interest rates jumped an average of 20% from [...]

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More Consumer Rights On the Way?

November 18, 2009

A new report from the Government Accountability Office (GAO) urges legislators to revise the Fair Debt Collection and Practices Act (FDCPA) to give consumers more rights.

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Overdrafts Generate Big Bucks For Banks

October 7, 2009

An estimated 45% of the country’s banks make more from overdraft fees than they do from credit card fees(!). They will generate $27 billion in covering overdrafts on checking accounts this year. Proposed legislation, however, may at least put in dent in that healthy source of bank revenue.
A 2008 FDIC study estimates that 41% of [...]

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Three Debt Assistance Companies Sued by the Minnesota Attorney General

September 24, 2009

The Minnesota Attorney General took action against three companies that promised to lower customer’s interest rates on credit cards for high fees.
Swanson filed suit against Priority Direct Marketing, Clear Financial Solutions, and Moneyworks, LLC. The suit alleges that all three companies charged high up front fees, between $999 and $1,995, and promised to lower the [...]

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FDPCA & FCRA Lawsuits On the Rise

September 23, 2009

The number of FDCPA and FCRA lawsuits filed in 2009 is well ahead of both 2008 and 2007. In July 2009, the 5000th suit was filed. In 2008, that benchmark was not hit until the second week of October; in 2007 it took until early December.
So what is behind the surge? Here are my best [...]

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Debt Collection Cheatsheet

September 17, 2009

The FTC has a great, four-page overview of consumer rights relating to debt collection. Some of their tips include:

Debt collectors can only contact you between the hours of 8AM and 9PM.
If you want to stop debt collectors from contacting you, you must make a request in writing. Once the debt collector receives your letter, they [...]

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Practical Effects of NAF’s Exit From Arbitration

September 9, 2009

National Arbitration Forum’s recent withdrawal from consumer arbitrations has cast a dark shadow on the use of arbitration as an alternative dispute resolution process and created ripples throughout the system.
For example, Bank of America has dropped its arbitration requirement for all consumer transactions. Undoubtedly, this was a reactionary move to NAF’s withdrawal—Bank of America realized [...]

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Cash for Dishwashers!

September 3, 2009

The government is rolling out another stimulus package this fall—and energy-efficient appliances are the latest to get subsidized. The new program will authorize $50-$200 rebates for consumers who purchase new, energy-efficient machines. (But consumers will not have to turn in their old machines.)
The program should start after October 15th, the deadline for states to file [...]

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Debt Collectors Can Still Use Robocalls

September 2, 2009

As of September 1, 2009, telemarketers cannot make prerecorded commercial calls to customers without obtaining written permission in advance. Debt collectors, however, do not fall under the new FTC rule, because their calls are apparently “informational messages.”
Phone calls from debt collectors are still subject to the FDCPA, of course.
Other purely informational messages include flight notifications, [...]

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Wells Fargo Sued For Reducing Home Equity Credit Lines

August 21, 2009

In Illinois class action complaint (PDF), a homeowner alleges Wells Fargo violated federal regulators’ warnings by reducing credit limits on all accounts in a geographic area without assessing the value of the actual houses.
The homeowner accuses Wells Fargo of using “unreliable or inaccurate analyses” to determine property values—using computer models to predict home values—rather than [...]

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Clunker Problems

August 20, 2009

Under the Cash for Clunkers program, dealers give buyers an instant rebate, then the dealer gets compensated by the government. The government is currently overwhelmed by the number of dealer requests and is having problems processing the requests quickly.
As a result, some dealers have pulled out of the program entirely. But there are plenty of [...]

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