In states that allow high-cost loans, excessive interest rates can trap borrowers in a cycle of debt. Caps on interest rates and loan fees are the main way states can protect consumers from predatory lending. Forty-five states cap interest rates and loan fees for some consumer installment loans, depending on the loan size.
The Consumer Financial Protection Bureau is looking at how consumers can get better customer service from big banks. Consumers have the right under federal law to get timely responses when they ask for information about their accounts at large institutions.
What are the best cars brands to buy in 2022’s hot market, and how to get the car that’s right for you
The majority of the cars in the top 10 of Consumer Reports’ 2022 Brand Report Card rankings are made by Japanese automakers. Six Japanese brands are among the top-10 in the rankings that shows which automakers are producing the most well-performing, safe, and reliable vehicles based on Consumer Report’s testing and member surveys.
Bank of America will pay $10 million for processing illegal, out-of-state garnishment orders against customers’ bank accounts. It froze accounts, charged fees, garnished funds, and sent payments to creditors based on court orders that should have been processed under state laws where the consumers lived.
Watch out for loans at auto repair chains made through EasyPay Finance and TAB Bank, consumer groups warn
Major national auto repair chains need to stop offering financing through EasyPay Finance and TAB Bank, which issue loans at rates up to 189 percent even in states where that rate is illegal. A coalition of consumer groups sent letters to the corporate offices for businesses such as JiffyLube about the loans.
With the likelihood high that the Federal Reserve will raise interest rates by half a point on May 4, people with credit card debt will spend an additional $3.3 billion on interest in 2022, according to WalletHub. “People generally have a negative opinion on Fed rate hikes,” said Delaney Simchuk, analyst.
Some large banks have announced they’re eliminating non-sufficient fund or NSF fees on their checking accounts. It’s a positive development, the Consumer Financial Protection Bureau said. These changes mean consumers will pay about 50 percent less in fees each year, an annual savings of about $1 billion.
National Consumer Protection Week March 6-12 is a time to help people understand their consumer rights and avoid frauds and scams. The Federal Trade Commission leads the national outreach for the week of events. It’s focusing on how fraud affects every community.
In the past, I’ve encouraged citizens on Presidents’ Day to take the opportunity to participate in government and make their voices heard. The goal? To help make government work more effectively. That message is even more critically important now.
On LinkedIn Wednesday, I read an article about the Capital One Venture X credit card by Ana Staples, a reporter for Bankrate, an independent, advertising-supported publisher, and comparison service website. Staples said she loves credit cards, and she enthusiastically recommended the Capital One Venture X credit card.