Consumer issues

Pressures on Fuel Ethanol Production Capacity

November 18, 2009 -- Capacity to produce fuel ethanol from corn nearly tripled between January 2006 and January 2009. However, over the past 18 months, a combination of surplus production capacity, the decline of gasoline prices from their mid-2008 peak level, and high corn prices that boosted producers’ input costs have resulted in a sharp decline in ethanol margins. The combination of economic pressures on capacity led some producers to idle plants, and in some cases, file for bankruptcy.    » read more »

Federal Reserve action does not stop significant overdraft loan abuses; FAIR Act is needed to provide comprehensive consumer protections.

November 17, 2009 -- Washington, DC -- The Consumer Federation of America today urged the Senate to protect consumers from unauthorized and extremely expensive overdraft loans. Jean Ann Fox, Director of Financial Services for the Consumer Federation of America testified before the Senate Banking Committee on the need for Congress to pass the FAIR Overdraft Coverage Act, S. 1799, to rein in overdraft loan abuses.    » read more »

November 16, 2009 -- PAGO PAGO, AS -- Fraud is a rare occurrence during disaster recovery. However, if it does occur, the Federal Emergency Management Agency (FEMA) has a responsibility to take action.

People who intentionally try to defraud the government are taking money away from those who truly need assistance. FEMA must ensure that taxpayer dollars go only to people who incurred legitimate losses. This may include prosecuting anyone who makes a fraudulent claim.

Most cases where possible fraud is detected are not deliberate attempts to defraud the federal government. FEMA recommends that applicants receiving grant money keep receipts to show how funds were used.    » read more »

John Rowe discusses how cap-and-trade legislation works to limit costs

CHICAGO (Nov. 16, 2009) – Exelon Chairman and CEO John W. Rowe said today that current legislative proposals on climate will minimize costs to consumers while addressing the imminent threat of global warming. In a keynote speech at the National Association of Regulatory Utility Commissioners annual convention, Rowe said a cap-and-trade system is cheaper than any of the alternatives and current proposals include protections to avoid sharp price increases for consumers.

“I believe the Senate can pass bipartisan climate legislation this Congress,” said Rowe. “The support of wavering senators will turn on whether they are reassured on the issue of costs, and I am confident they will be.”    » read more »

Last Week Schumer Requested The FTC Step Up Enforcement Actions Against Websites Peddling Fake H1N1 Cures and Prevention Methods

November 16, 2009 -- Today, U.S. Senator Charles E. Schumer announced that the Federal Trade Commission (FTC) is embarking on a major crackdown on companies selling phony H1N1 remedies. As the problem of fake remedies grows worse, and concerns about the H1N1 flu increase, the FTC announced that they would take further enforcement action against ten companies that are peddling fake H1N1 remedies on-line.    » read more »

Families USA Consumer Guide Outlines Strategies to Deal with Debt and Discusses Rights and Protections for Families Facing Medical Debt and Bankruptcy

November 12, 2009 -- Washington, D.C.—Even as Congress debates health reform proposals, millions of Americans—with and without health insurance—struggle to pay medical bills, and their numbers continue to grow. In response to this crisis, Families USA, the national organization for health care consumers, today released a consumer guide that offers strategies, tips, and warnings to consumers as they struggle to manage medical debt and to avoid bankruptcy.    » read more »

Good First Step But More Protections Are Needed; CFA Calls On Congress to pass the Overdraft Protection Act of 2009 to limit these abusive fees.

November 12, 2009 -- Washington, DC --- Consumer Federation of America (CFA) applauds the final overdraft rule issued today by the Federal Reserve Board as an important first step toward protecting consumers from abusive overdraft lending. The Reg E rule requires banks to get affirmative consent from consumers before charging fees on debit card purchases and ATM withdrawals that overdraw consumers’ bank accounts.    » read more »

Saudi Aramco Announces New U.S. Pricing Formula

November 12, 2009 -- The U.S. imported slightly more than 1 million barrels of crude oil per day from Saudi Arabia during the first 8 months of 2009. Despite a decline of more than 33 percent compared to the same period in 2008, Saudi Arabia was still the third largest source of U.S. crude oil imports during the first 8 months of this year, according to EIA import data.    » read more »

12 November 2009 -- CHICAGO -- Today, Congressman Mike Quigley (D-IL) issued the following statement after the Federal Reserve announced it will prohibit banks from charging overdraft fees on ATM and debit card transactions without a customer’s permission.

“The financial misfortune of the past year has taught Washington a valuable lesson, that we must do a better job protecting consumers. As we continue to recover from the irresponsibility, greed and opaque practices of Wall Street, reforming overdraft fees further shifts the balance of power away from banks and back to Main Street.    » read more »

November 12, 2009 -- WASHINGTON, DC – In response to today's news that the Federal Reserve will take the initial step of instituting new rules restricting overdraft fees on debit cards, U.S. Representative Kendrick B. Meek today called for a full curb on excessive and unfair bank overdraft fees.

"This is a great first step to ensure consumer protection, but Congress can move further on this pocketbook issue," said Congressman Meek.    » read more »

November 12, 2009 -- WASHINGTON, DC – Rep. Carolyn Maloney (D-NY) today offered this statement on changes to debit-card overdraft rules announced by the Federal Reserve today:

“I'm glad that the Federal Reserve has recognized the need to address outrageous overdraft policies by requiring a strong affirmative opt-in to debit-card overdraft plans, and I commend Chairman Bernanke for taking the regulators in this direction. The Fed’s rule is an endorsement of the need for more overdraft protection for consumers.    » read more »

Supports Tough New Rules on Banks

November 13, 2009 -- Washington, DC -- Congressman Paul Hodes today announced his support for new rules that would ban banks from charging many overdraft fees to customers without first getting the customer’s consent. The Federal Reserve announced the new rules aimed at protecting consumers from banks who earned $37 billion in overdraft fees alone last year. However, Congressman Hodes supports stricter rules to provide even more support to consumers who have fallen victim to Wall Street banks’ practices.    » read more »

Fed Will Require Customers’ Permission Before Banks Can Charge Overdraft Fees

November 12, 2009 -- Senate Banking Committee Chairman Chris Dodd (D-CT) welcomed today’s release of a new Federal Reserve rule that will require banks to get a customer’s consent before enrolling them in an overdraft coverage program. Banks use these programs allow customers to overdraw their accounts without their knowledge, and then slap them with fees of upwards of $30 for this “courtesy.”    » read more »

Bill is needed to protect consumers and investors and to provide appropriate oversight of the financial marketplace.

November 10, 2009 -- Washington, DC -- The Consumer Federation of America today released the following statements on the introduction of Senator Dodd’s Financial Reform proposal.    » read more »

ST. PETERSBURG, Fla. (November 11, 2009) – Thoughts of Thanksgiving often conjure up sights, smells and tastes reminiscent of a holiday meal like no other. While you’re working up a sweat in the kitchen this November, take a few simple steps to make sure the only thing that’s sizzling is your roasting turkey.

Consider these valuable, energy-saving tips:

· Shut the door: Admit it. You like to watch food cook. This Thanksgiving, resist the urge to open the oven door, as doing so will decrease the temperature inside by 25 to 30 degrees. Use your oven light instead to keep the oven hot and the kitchen comfortable.    » read more »