Reining in Wall Street

STANDING UP FOR CONSUMERS IN THE FINANCIAL MARKETPLACE—For more than 20 years, Consumer Program Director Ed Mierzwinski has helped us stand up against big banks and credit card companies.

A Consumer Cop On the Financial Beat

You work hard for your money. You should be able to save, invest and generally manage your money without fear of being trapped, tricked or ripped off by the institutions you are trusting with your financial future. And from the 2008 economic collapse, we know how big of an impact those institutions can have on our economy when they play fast and loose with our money. 

Since 2009, the solution has been clear. We need to have fair, clear, transparent and enforceable rules that protect consumers in the financial marketplace. Now, we know we can get there through the work of an agency that has those principles at the core of its mission — the Consumer Financial Protection Bureau.   

The CFPB Gets the Job Done

Despite the fact that the CFPB is not widely known, we’ve already seen their financial oversight return nearly $12 billion to consumers … in just five years. The CFPB holds big banks, debt collectors, and lenders accountable. Here are a few examples of some of the cases the CFPB has taken on:


When American Honda Finance used discriminatory pricing to rip off African-American, Hispanic, and Asia/ Pacific Island borrowers who paid too much for car loans, the CFPB returned $24 million to these consumers.


The Department of Justice and 47 states joined the CFPB in a $216 million action against JP Morgan Chase Bank for illegal debt collection practices affecting over half a million Americans.


When it was discovered that Wells Fargo employees were opening unauthorized debit and credit accounts using their customer's information, the CFPB fined Wells Fargo $100 million for fraud.


The CFPB fined Equifax andTransUnion — two of the three largest credit reporting agencies — $5 million for selling inflated credit scores to consumers that were different from ones actually used by lenders and returned $17 million to those harmed by the deception.

But the CFPB doesn't just help consumers get their money back, it levels the financial playing field. The CFPB has several specialized departments for veterans, senior citizens, new homeowners, college students, and low-income consumers that seek to educate the public on how to stay safe and provide them with the tools they need to keep their finances secure.

Tell Your Senators: Stand Up For Consumers

Almost every day we hear about some new way of tricking, trapping and ripping off consumers. And despite the fact that tricks like these led directly to the 2008 financial collapse, some Wall Street banks are spending upwards of a million dollars every day to roll back the rules and the CFPB — the very agency that was created to keep them in check. Now, many legislators in Washington want to defund or destroy the CFPB.

Effective consumer protections aren't some sort of luxury we can't afford — they're hallmarks of a great country. As founders and leaders of the movement to create and protect the CFPB, we're working to make sure that our success not only sticks, but that we can build upon it.

Issue updates

Blog Post | Financial Reform

CFPB Slams Two Credit Bureaus For Deceptive Marketing, Expect Experian Next | Ed Mierzwinski

This week, the Consumer Financial Protection Bureau nailed two "big 3" credit bureaus --Trans Union and Equifax -- for deceptive marketing of their over-priced, under-performing credit monitoring subscription products.  Combined fines and consumer restitution total $23 million. I predict that the CFPB will also bring a case against the remaining bureau, Experian, and that it will pay much more, because Experian really has led the way in aggressively marketing these tawdry products. They don't prevent identity theft, nor do they always accurately disclose your credit score, at fees of up to $16.95/month or more. Yikes!

> Keep Reading
News Release | U.S. PIRG | Financial Reform

Overdrafts continue to hit students hard on campus

Today, the Consumer Financial Protection Bureau (CFPB) released a report shining a spotlight on contracts between banks and colleges to promote debit cards on campus.  Students continue to get hit hard with overdraft fees attached to their campus bank accounts. According to the report, nearly one in ten consumers in the population with student accounts incurred 10 or more  overdrafts per year, paying, on average, $196 in overdraft fees alone. Below is a detailed analysis by US. PIRG's Chris Lindstrom, who championed the protections that the CFPB is reporting on. This report is one more example of why we need a strong CFPB. 

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News Release | U.S. PIRG | Financial Reform

Privacy, Consumer Groups Critical of Facial Recognition Report

We've joined leading privacy and consumer advocates in a news release sharply critical of a supposed "best-practices" report released today by the Telecommunications and Information Administration (NTIA) concerning privacy and facial recognition technology. While the report purports to be the product of a "multi-stakeholder" process, all the leading privacy and consumer stakeholders dropped out of the skewed proceedings many months ago, as the release explains. It concludes: "There is much more lacking in these “best practices,” but there is one good thing: this document helps to make the case for why we need to enact laws and regulations to protect our privacy."

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Blog Post | Financial Reform

We oppose latest effort to weaken CFPB, other bank regulators | Ed Mierzwinski

Today, the House Financial Services Committee holds its latest cattle-call markup of a package of industry-backed bills designed to weaken consumer, taxpayer, depositor and investor protections. We've signed a letter opposing the so-called TAILOR (Taking Account of Institutions with Low Operation Risk) Act, which piles redundant requirements onto the Consumer Financial Protection Bureau and other regulators to do what they already do by existing law--treat small banks and credit unions differently than mega-banks. Also, the PIRG-backed Americans for Financial Reform sent up a letter opposing the TAILOR Act and 6 more of the 10 bills on the agenda because they are designed to weaken consumer, taxpayer, depositor and investor protections.

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News Release | U.S. PIRG | Consumer Protection, Financial Reform

More Than 100 Groups Insist on No Riders in Spending Legislation

The day before the White House is expected to release its fiscal year 2017 budget proposal, a coalition of more than 100 groups, including U.S. PIRG, sent a letter calling on President Barack Obama and all 535 members of Congress to oppose any federal appropriations bill that contains ideological policy riders.

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Blog Post | Financial Reform

We Join FTC Event on Big Data E-Scores | Ed Mierzwinski

Companies on the Internet are tracking you with vastly powerful Big Data algorithms to determine what to sell you and for how much and what financial opportunities to offer you. Today at 10am, I join an FTC workshop on Alternative Scoring Products to debate the transparency and fairness of the system with privacy and technology experts from industry, academia and the public interest. You can attend or watch online.

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Blog Post | Financial Reform

While CFPB Takes Action To Aid Consumers, U.S. House Acts Against CFPB | Ed Mierzwinski

Yesterday, the CFPB sued ITT, a for-profit school, for a variety of alleged violations, including pressuring students into high-cost predatory loans with little promise of a future job. This morning, I join CFPB leaders for a panel on how it can help fix the credit reporting system. Yet, this afternoon, the House will probably vote to hobble the CFPB in several ways. Go figure.

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Blog Post | Financial Reform

Target says "Oops, 70-110 million consumers hacked." | Ed Mierzwinski

Target is now saying that "a range of 70 million to 110 million people," not the original 40 million customers, had their credit or debit card numbers hacked in December. Even worse, Target is admitting that the database stolen included email addresses and phone numbers, which leaves consumers vulnerable to phishing attacks that could lead to identity theft, as if fraud on existing accounts wasn't enough. Here are some tips.

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Blog Post | Financial Reform

Today, CFPB to announce overdraft fee investigation, unveil "penalty box" disclosure, possibly end $39 lattes. | Ed Mierzwinski

Would you knowingly agree to pay a $35 fee each time you used your debit card at point of sale, simply to allow you to purchase a $4 latte with only $2 in your account? Even the banks didn't think so, that's why they made “standard overdraft protection” a feature of your checking account that you didn't need to choose...

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Blog Post

In support of a report by colleagues from the Norwegian Consumer Council on whether the data sharing and privacy practices of a number of dating and other smartphone apps were in compliance with European privacy rules (GDPR) or the new California Consumer Privacy Act (CCPA), U.S. PIRG and other leading groups sent joint letters to key policymakers, including the California, Oregon and TexaS Attorneys General, the Federal Trade Commission and all members of the U.S. House and Senate. 

Blog Post

Last week, CFPB Director Kathy Kraninger appointed four lawyers and professors to a "Taskforce on Federal Consumer Law." To my knowledge, none have worked for consumer protection organizations yet all have worked as industry consultants or been aligned with industry views, although all have previous government experience. I am aware of several distinguished professors with CFPB experience who were rejected. Incredibly, the announcement of this better-described "Task Farce" claimed inspiration from a distinguished bi-partisan commission established by the Consumer Credit Protection Act in 1968." 

Blog Post

Last week, Sens. Jack Reed (RI) and Chris Van Hollen (MD) introduced legislation to finally give consumers real control over our own credit reports. The Consumer Credit Control Act would change what Sen. Reed appropriately calls our “backwards” credit reporting system by helping to solve two problems. The Consumer Credit Control Act is a win-win for consumers. It improves their privacy and saves them money.

Blog Post

CFPB Director Kathy Kraninger will deliver the statutory “Semi-Annual Report of the CFPB” to the House Financial Services (10/16) and Senate Banking (10/17) Committees next week. Here are some helpful questions for committee members to ask.

Blog Post

Recently, the CEOs who make up the Business Roundtable renewed their demand that Congress pass a federal privacy “standard” that preempts stronger state laws. That's the wrong way to go because Congress only does a good job protecting consumers either after a disaster (e.g., Wall Street's collapse of the economy) or after states lead the way. We shouldn't have to wait for a disaster. Learn more.

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