October 2009 Archives

      NBC News has reported that credit card companies are experimenting with annual fees for certain card holders to make up for lost revenues. http://today.msnbc.msn.com/id/33335064/ns/business-consumer_news/         If your bank indicates an intention to impose a fee for your credit card, raise a fuss, and if you can afford it, consider closing your account to make a point. But not all consumers can or should do that, because as noted in the news story, credit scores can be adversely affected by closing and reopening credit card accounts. Savvy consumers will think twice before closing their accounts, but now is...

      Introduced July 14, 2009 to the House of Representatives, America's Affordable Health Choices Act of 2009, otherwise known as HR 3200 (the lengthy text of which can be seen here: http://thomas.loc.gov/cgi-bin/bdquery/z?d111:H.R.3200) provides many health care coverage improvements for Americans. Some of the provisions are smart and simple improvements of protections for consumers of health care insurance. One might be tempted to us as an example minimum standards for health insurance programs. However, as with all regulatory action, minimum standards must be regulated, and that reduces flexibility and adds costs which ultimately will be borne by consumers either in...

      Virginia consumers frustrated by arbitration clauses in Federal claims against powerful corporations may get relief soon. Yesterday, the Department of Defense Appropriations bill was amended by a provision to limit forced arbitration in employment contracts with defense contractors. The vote was 68-30, and now moves on to a conference committee for reconciliation with the House version.         The Defense Appropriations bill may seem an odd place for consumers to begin getting relief, but that is a function of the fact that claims against defense contractors are more likely to be large, and the injustice arising from forced...

In a New York Times article last week (seen here: http://www.nytimes.com/reuters/2009/09/23/us/politics/politics-us-financial-regulation-cfpa.html?_r=1&scp=7&sq=consumer%20watch%20dog%20agency&st=cse), the recent White House proposal for a consumer financial protection agency is discussed. As with any new agency, it will take some time to become effective. Although it will have a huge influence on the financial sector, and should provide valuable protections, politicians are right in being keen not to reduce the competition, and the ability of consumers to make their own decisions, in the financial sector....