Consumer / activist groups and Wells Fargo victims target Wells Fargo over forced arbitration – National Consumers League

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February 27, 2017

Groups release letter to Wells Fargo CEO Sloan, call on Wells Fargo to stop forcing customers and workers to surrender Constitutional rights

Contact: Rosemary Shahan, CARS Foundation, 530-759-9440; Joe Ridout, Consumer Action, 415-777-9648 ext. 705; Carol McKay, National Consumers League, 412-945-3242, carolm@nclnet.org

Washington, DC, Sacramento, CA, San Francisco, CA–In news events across the nation, in Washington, DC, and at Wells Fargo’s headquarters in San Francisco, consumer and activist organizations closed their accounts with Wells Fargo, to protest the bank’s refusal to stop imposing a “rip-off clause” forcing its customers and workers to surrender their constitutional rights, to obtain services or employment.

The organizations also released a letter from a broad-based coalition of groups calling on Wells Fargo’s CEO Sloan to cease forcing its customers and workers to submit to forced arbitration. The bank continues to resist calls from pro-consumer leaders such as Senators Sherrod Brown (D-OH), Elizabeth Warren (D-MA), and Representative Maxine Waters (D-CA),  and the editors of leading newspapers for the bank to free its customers and employees to pursue cases before a court of law, particularly regarding millions of accounts set up without their permission, through identity theft, forgery, and fraud.

“After six years of banking with Wells Fargo, we’re switching to another bank that respects the the constitutional rights of its customers and workers,” said Sally Greenberg, Executive Director of the National Consumers League, based in Washington, DC. The League already established a new account at Bank of Labor, which does not impose forced arbitration, and  is closing its account at Wells Fargo, withdrawing its working capital, of approximately $1.8 million.

The GOP-controlled Congress and the Trump administration are threatening to fire Richard Cordray, the Director of the Consumer Financial Protection Bureau, who has a long record of protecting consumers.  Under his leadership, the CFPB has succeeded in forcing  banks to refund over $11.8 billion to consumers who were wronged.

“They want to replace Richard Cordray with someone who will let crooked banks like Wells Fargo get away with charging consumers billions of dollars through engaging in illegal practices. So it’s up to each of us to act, to protect ourselves and also send the message we won’t tolerate crooked bankers,” said Rosemary Shahan, President of the Consumers for Auto Reliability and Safety  (CARS) Foundation. The group unveiled a new website, at “We DO Count.org” focusing on the campaign to make the switch from Wells Fargo to more consumer-friendly banks or credit unions.

“Wells Fargo opened up a credit card account without my authorization, and it ended up harming my credit and making many purchases, like a car, and even utilities a lot more expensive, for about five years,”  said Aaron Brodie, who was a freshman college student when Wells Fargo opened a credit card account without his permission, then refused to close it, after he requested that it be closed. He has sued Wells Fargo, and instead of doing what is right, Wells Fargo is seeking to force his case into arbitration.

“As long as Wells Fargo requires mandatory arbitration, there is nothing to stop Wells Fargo from violating the privacy rights of its customers and engaging in fraud,” said Byron Cooper, who closed his accounts with Wells Fargo as soon as he discovered the bank had opened two new accounts and shifted $25,000 from his checking account to his savings account — all without his authorization, and despite his insistence he did not want the new accounts. The bank also changed his “free” checking account to one that charged $30 per month and required a minimum balance of $25,000 — also without his permission.

Joe Ridout, Consumer Services Manager for Consumer Action, personally hand-delivered the letter to the bank’s headquarters in San Francisco. Consumer Action also provided tips for consumers about how to find a banking institution or credit union that does not impose forced arbitration on its customers and workers, and also how to make the transition smoothly so that no payments are missed. “We believe many consumers will be pleasantly surprised to discover the higher interest they earn, and the fewer fees and abusive practices they face, once they switch to a more honest financial institution,” said Ridout.

Most credit unions don’t require arbitration. In 2015, the Pew Charitable Trust released a report that provides comparisons of banks, including whether they impose forced arbitration. While some of the policies may have changed, that report provides helpful guidance for choosing options that don’t impose arbitration.

Links to relevant documents:

“Wells Fargo Victims Deserve Their Day In Court,” Sacramento Bee Editorial, December 8, 2016

“Wells Fargo Blocks the Courthouse Door,” Des Moines Register Editorial, December 4, 2016

Consumer Action’s Tips for Consumers: How to Make the Switch from Wells Fargo

“Checks and Balances” by Pew Charitable Trust, May 2015

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Coalition urging consumers to walk away from Wells Fargo – National Consumers League

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NCL is part of a broad coalition of pro-consumer groups are launching a national campaign targeting Wells Fargo Bank over its illegal practices, and its denying customers and employees their constitutional rights under the 7th amendment to the U.S. Constitution, to hold businesses that engage in illegal practices accountable in a court of law. 

The organizations, including NCL, Consumers for Auto Reliability and Safety (CARS) Foundation, and Consumer Action, also released a letter from a broad-based coalition of groups calling on Wells Fargo’s CEO Timothy Sloan to cease forcing its customers and workers to submit to forced arbitration. The bank continues to resist calls from pro-consumer leaders such as Senators Sherrod Brown (D-OH), Elizabeth Warren (D-MA), and Representative Maxine Waters (D-CA), and the editors of leading newspapers for the bank to free its customers and employees to pursue cases before a court of law, particularly regarding millions of accounts set up without their permission, through identity theft, forgery, and fraud.

We talked to two consumers who fell victim to the bank’s illegal practices. Here are their stories:

Aaron, Texas
Victim of Wells Fargo’s illegal practice of establishing accounts without permission

Aaron works as an emergency dispatcher for the Fort Worth, Texas, police department. In 2011, when he was entering college in Bakersfield, California, as a freshman, he opened a checking account at a local Wells Fargo branch. His family had warned him about the dangers of using credit, and he had firmly decided that he did not want a credit card. However, without his permission, and without obtaining his signature, the bank employee also opened a credit card account.

When Aaron received the credit card in the mail, he contacted the bank and informed them that he wanted them to close the account. They refused to close it, but told him that he could simply not use the card, with no ill effects. He destroyed the credit card and thought that took care of the matter. What he did not realize was that every time he used his debit card and the charges went over the amount of available funds, fees were mounting in his credit card account, and he was being charged added interest and penalties. That account accumulated over $1300 in fees, which Aaron has refused to pay.

Wells Fargo reported the unpaid charges to credit reporting agencies, harming his credit. As a result, Aaron had to pay extra down payments and interest for car loans, make extra deposits for utilities, and incur other substantial costs. Wells Fargo refused to correct this wrong. Aaron is now suing Wells Fargo, and Wells Fargo is attempting to force him to submit to arbitration instead of being able to hold the bank accountable in court.

Byron, California
Victim of Wells Fargo’s illegal practice of establishing accounts without permission

Byron is a graduate of West Point and also an attorney who specializes in patent law. For about 20 years, he had a “free” checking account with Wells Fargo. In 2014, Bryon received a call from an employee at Wells Fargo who attempted to talk him into opening two new accounts – a savings account and a “high yield” account – which he had not requested or authorized. He told the employee that he did not want the accounts. Byron also sent an email stating that he did not want any new accounts.

The employee disregarded his expressed wishes, and opened up the new accounts. Wells Fargo also changed his “free” checking to an account that charged him $30 per month unless he maintained a balance of $25,000. Then the bank shifted $25,000 from his checking account into the savings account – also without his permission. The day after he found out that the accounts had been opened, he went in person to his local Wells Fargo branch and closed each of the accounts. It took about a day to arrange for direct deposits and automatic bill payments. He now does his banking with a credit union and several other banks.

Tips for switching

The coalition has put together tips for consumers who are also ready to walk away from Wells Fargo and its anti-consumer and worker practices. Get the tips from Consumer Action here.

Don’t miss out on this important tax credit – National Consumers League

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For taxpayers who claimed the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), this is the week that those refunds will start to arrive in bank accounts or on debit cards. Due to a new law designed to reduce rates of tax identity fraud, the IRS this year began holding refund checks for EITC and ACTC-eligible filers until February 15. Because of the President’s Day and other bank holidays, filers who applied for those credits won’t start seeing their refunds in their accounts until today. Impacted individuals can check the status of their refund online or on the IRS2Go mobile app.  

For many of these families, a tax refund can represent more than 30 percent of their annual household income, making any delays especially stressful. The EITC is one of the impactful poverty reduction programs in America. In the last year alone, the EITC lifted 6.5 million Americans out of poverty, including 3.3 million children. The program has also been found to grow local economies, particularly in low income metropolitan areas. It has one of the highest participation rates for such a program, with 79 percent of those eligible claiming the credit.

While that’s excellent. The more than 20 percent of those who are eligible for the EITC do not claim are potentially missing out on thousands of dollars in tax credit that they’re owed. Why is this? Unfortunately, millions of eligible families are missing out simply because they do not have all the information they need about the tax breaks available to them. The best way to get that information is to take advantage of free IRS tax preparation resources, like the Free File program and Volunteer Income Tax Assistance programs. With resources like these, individuals don’t have to guess about their eligibility. With the help of IRS-certified volunteers or the IRS EITC assistant, working families can make sure the EITC works just as hard for them.

NCL statement: Delayed tax refunds begin arriving for EITC/ACTC recipients – National Consumers League

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February 27, 2017

Don’t let refund delays keep you from claiming Tax Credit you deserve

Update

Washington, DC—While the IRS began issuing refunds for Earned Income Tax Credit and Additional Child Tax Credit recipients on February 15, the IRS has said that consumers should beginning to see those refunds appear in their bank accounts starting today.

The following statement is attributable to John Breyault, Vice President, Public Policy, Telecommunications, and Fraud at the National Consumers League.

“For families claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), a tax refund can account for as much as 30 percent of their annual incomes, making any delay in getting that refund a source of stress. However difficult, those impacted should soon start to receive their refunds. With the delay lifted, I encourage anyone yet to file to do so now and check if they are eligible for these important credits. Currently only four out of five eligible taxpayers claim the EITC every year. That means 20 percent of those eligible are potentially missing out on thousands of dollars in tax credits that they’re owed. These folks work hard. They should find out whether the EITC can work just as hard for them.”

Background

  • Statistics for Tax Returns with EITC broken down by state are available here.

  • Individuals can check to see if they are eligible for the EITC through the IRS EITC Assistant.

  • Consumers can check the status of their refund at irs.gov/refunds or the official IRS2Go mobile app.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Press tele-conference at 10 am today followed by Downtown DC TV press event: Groups launching national campaign against Wells Fargo – National Consumers League

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February 27, 2017

PRESS TELE-CONFERENCE ADVISORY

*** Today at 10:00 AM Eastern. To be followed by TV press event, closing a major account at Wells Fargo branch at 1100 Connecticut Ave NW, Washington, DC 20036 at 11:00 AM Eastern. ***

Call-in: 877-216-1555
Passcode: 644955

Coalition Launches Campaign to Urge Consumers to Close Wells Fargo Bank Accounts Until the Bank Drops Forced Arbitration Requirements on Customers and Employees

Broad Coalition Will Release Letter to Wells Fargo Bank CEO 

For immediate release: Monday, February 27, 2017

Washington, DC, Sacramento, CA, and San Francisco, CA —  A broad coalition of pro-consumer groups are launching a national campaign targeting Wells Fargo Bank over its illegal practices, and its denying customers and employees their constitutional rights under the 7th amendment to the U.S. Constitution, to hold businesses that engage in illegal practices accountable in a court of law. 

The organizations will release a letter addressed to Wells Fargo CEO Timothy Sloan calling on the bank to cease imposing forced arbitration on its customers and workers.

One major consumer organization will announce that it is withdrawing its working capital, approx. $1.8 million, from Wells Fargo, closing its account with Wells Fargo, and switching to a more consumer-friendly bank that does not impose forced arbitration on its customers or employees.

Two victims of Wells Fargo will provide details about their personal experiences with the bank’s anti-consumer practices.

Tips will be provided about how to make the switch from Wells Fargo to banks and credit unions that do not impose forced arbitration.

EVENTS:

10 am Eastern Press Tele-conference: New national campaign targeting Wells Fargo.
Following tele-conference call, TV event: National Consumers League will close a major account at Wells Fargo branch at 1100 Connecticut Ave NW, Washington, DC 20036

DATE: Today, Monday, February 27, 10:00 AM Eastern

CALL-IN #: 877-216-1555, passcode 644955

SPEAKERS:

  • Sally Greenberg, Executive Director, National Consumers League
  • Rosemary Shahan, President, Consumers for Auto Reliability and Safety Foundation
  • Joe Ridout, Consumer Services Manager, Consumer Action
  • Two victims of Wells Fargo’s practice of opening accounts without permission
  • Attorney for one of the victims will be available to respond to legal questions about the litigation

*** NO Information Will Be Released Before the Morning of the Teleconference ***

News release, letter to Wells Fargo CEO Sloan, tips for consumers and other materials will be available today at: https://wedocount.org.   

Contact: Rosemary Shahan, President, CARS Foundation, 530-759-9440, or rs@carconsumers.org (Sacramento)
Sally Greenberg, Executive Director, National Consumers League, (202) 631-2301, sallyg@nclnet.org (Washington, DC) or Carol McKay, carolm@nclnet.org, (724) 799-5392

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

NCL to FCC: Consumers’ data security is too important to wait – National Consumers League

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February 24, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Washington, DC–The National Consumers League, America’s pioneering consumer and worker advocacy organization is profoundly disappointed in the decision by Federal Communications Commission Chairman Ajit Pai to suspend the implementation of critically-needed data security rules.

The following statement is attributable to John Breyault, NCL vice president of public policy, telecommunications and fraud:

“At a time when literally billions of consumers’ records — many containing sensitive personal information — are compromised on a seemingly daily basis, it is inconceivable that Chairman Pai would halt the implementation of the FCC’s data security rules at practically the last minute. That this action was taken as part of the ‘Friday news dump’ suggests that the new leadership at the FCC wanted to sweep this anti-consumer decision under the rug. All one need do is look at the staggering rates of identity theft linked to data breaches to understand the need for stronger data security protections. Last year, the FCC took the common-sense step of requiring Internet service providers — the gateways through which practically all consumer data flows — to abide by reasonable data security protections. Instead of allowing these much-needed protections to take effect, Chairman Pai has instead decided to leave consumers’ data at greater risk.”

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Union membership hitting new low – National Consumers League

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SG_HEADSHOT.jpgThe sad news that union membership has hit the lowest levels on record in the U.S. means a further depression of wages and benefits. According to a report by the U.S. Labor Department (DOL), only 10.7 percent of workers were union members last year, down from 11 percent in 2015, and nearly 20 percent in the early 1980’s.

This is unfortunate because union members earn better wages and benefits than non-union members. According to the U.S. Bureau of Labor Statistics (BLS), on average, union workers’ wages are 27 percent higher than their nonunion counterparts.  

Furthermore, unionized workers are 60 percent more likely to have employer-provided pensions. More than 79 percent of union workers have jobs that provide health insurance benefits, but less than half of nonunion workers do. Unions help employers create a more stable, productive workforce—where workers have a say. There is no question that unions help bring workers out of poverty and into the middle class. In fact, in states where workers don’t have union rights, workers’ incomes are lower.

So why is unionization at such a low point? Some argue that is because manufacturing jobs that were typically unionized have been shipped overseas; that is undoubtedly a factor, but even when there are blue collar jobs, employers fight like the devil to keep unions out and often win through fear and anti-union propaganda. 

The recent International Association of Machinists and Aerospace Workers’ (IAM) efforts to unionize at Boeing in South Carolina is a case in point. In a vote last week, 74 percent chose not to unionize. Why? According to the Machinists, “North Charleston Boeing workers endured a multi-faceted anti-union campaign, which included captive-audience meetings and massive TV, radio and billboard ad buys.”

“Boeing management spent a lot of money to make sure power and profits remained concentrated at the very top. The company’s anti-union conduct reached new lows,” said IAM lead organizer Mike Evans. “The IAM remains committed to getting Boeing South Carolina workers the respect, wages and consistency they deserve.”

South Carolina is one of the most hostile states for unionizing workers. Indeed, Boeing was lured there on promises that there would be no support for unions from Governor Nikki Haley and other officials, not to mention the state’s Right to Work (for less) laws.

But as the BLS numbers show, unionized workers make more money, get better benefits, and are able to rise into the middle class because of it. It’s unlikely that President Donald Trump’s political appointees will be of any help, despite his broad support from union members. Certainly his failed DOL Secretary nominee, Andrew Pudzer could not have been more antagonist toward workers—fighting minimum wages, making misogynist comments about women, and saying he favored robots because they didn’t bring discrimination complaints. Alexander Acosta, the new Labor Secretary nominee, doesn’t seem too friendly to unions either based on his record with the National Labor Relations Board but AFL-CIO President Richard Trumka says to give him a chance. 

The huge profits companies like Boeing earn should be shared among those who do the day-to-day work. And workplaces with good labor management relations tend to thrive, as demonstrated by many European models. So the future doesn’t look terribly bright for maintaining even the current unionization numbers in the U.S. and workers pay every day for that in lower wages and opportunities.

 

 

 

 

Individual tax filings down in January; Consumers warned to beware of fraudsters taking advantage of processing delays – National Consumers League

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February 15, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Washington, DC—Beginning this year, a new law required the IRS to delay issuing refunds for certain taxpayers claiming the Earned Income Tax Credit or the Additional Child Tax Credit. Starting tomorrow (February 15), the IRS will begin issuing refunds for those consumers impacted, but has warned consumers that they should not count on seeing their refund until the week of February 27.

This delay is believed to be responsible for a 78 percent drop in refund amounts compared to this time last year, leaving many asking: where’s my refund?

The following statement is attributable to John Breyault, Vice President Public Policy, Telecommunications, and Fraud at the National Consumers League.

“This year’s delay may be why the IRS is seeing a significant decrease in the number of people filing returns as compared to this point on the calendar in previous years. Though the IRS will begin issuing refunds for Earned Income Tax Credit and Additional Child Tax Credit recipients starting today, it is important that filers know that, due to processing times, taxpayers may not receive their refund for another two weeks. A tax refund can account for as much as 30 percent of working families’ annual incomes. Thus, any delay in getting a refund can be a significant source of stress and, potentially, an opportunity for fraudsters or others to take advantage of consumers’ short-term cash crunch. If you are worried about the status of your refund, the best way to check is by visiting irs.gov/refunds or by using the IRS2Go smartphone app. While this won’t speed up the arrival of a refund check, it can help consumers better plan for any cash shortfall a refund delay causes.”

Background

  • According to the IRS, there has been a 24 percent drop in tax returns filed compared to this time in 2016.
  • The official IRS2Go smartphone app is available in both English and Spanish on the Apple App Store, Google Play, and Amazon. https://www.irs.gov/uac/irs2goapp
  • The IRS offers several no-cost options for taxpayers to prepare and file their returns and keep 100 percent of their refund. Consumers comfortable using online services and who made $64,000 or less in 2016 can use the IRS’s Free File Program. Free File gives consumers free access to tax filing software from twelve leading tax preparation companies. For those who need more hands-on help and made $54,000 or less in 2016 there are free Volunteer Income Tax Assistance programs in their communities, which are staffed by IRS-certified volunteers.
  • The National Consumers League also released an infographic with tips to help consumers reduce their risk of tax identity fraud.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.

Find yourself asking, ‘Where’s my refund?’ – National Consumers League

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The law requiring the IRS to delay issuing refunds for certain taxpayers has caused a lot of uncertainty this tax season. In fact, it is believed that this delay, which impacts those claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), is partially responsible for up to a 78 percent drop in refunds compared to this time last year. This has left many wondering when they can expect their refund in their bank account.

The long wait is almost over. The IRS will begin issuing refunds to those impacted today. While this means that many consumers are one step closer to a refund, the National Consumer League is warning consumers to be prepared to wait an additional two weeks. Due to processing times and the Presidents’ Day holiday, consumers may not receive their refunds until the week of February 27.

For those worried about the status of their refund, we encourage the following:

Visit irs.gov/refunds or the official IRS2Go mobile app. These remain the best ways to check the status of a refund. The official IRS2Go smartphone app is available in both English and Spanish on the Apple App Store, Google Play, and Amazon. 

The IRS will update their projected deposit dates for early EITC and ACTC refund filers a few days after Feb 15. Until then, taxpayers will not see a refund date on irs.gov/refunds or the official IRS2Go mobile app. While checking online won’t speed up the arrival of a refund check, these resources can help consumers better plan for any cash shortfall a refund delay causes.

NCL’s Greenberg honored with Champions of Access award by Association for Accessible Medicines – National Consumers League

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February 14, 2017

Contact: Cindy Hoang, NCL, cindyh@nclnet.org, (202) 207-2832

Orlando, FL—At an annual meeting of the Association for Accessible Medicines (AAM) (previously the Generic Pharmaceutical Association) in Orlando today, the National Consumers League (NCL) was honored with the prestigious Champions of Access award. Accepting the award on behalf of NCL was Sally Greenberg, who has served as NCL Executive Director since 2007. The inaugural Champions of Access award was presented to Greenberg at #ACCESS17, before an audience of nearly 700 generic industry stakeholders, by AAM President and CEO Chip Davis.

“Partnerships with organizations such as NCL are critical to increasing access to safe, effective and more affordable generic and biosimilar medicines,” said Davis. “We are proud to honor those organizations and individuals who share this commitment and will continue working tirelessly so that more patients and consumers can access the medicine they need at a cost the system can bear. Congratulations to Sally and NCL, true ‘Champions of Access,’ for their work advocating for programs and policies that keep medicines within reach, improving lives and strengthening our economy in turn.”

Greenberg and NCL were recognized for their work advocating for programs and policies that promote low-cost, effective drugs that benefit patients as well as the American healthcare marketplace.

“On behalf of NCL, I am honored to accept this award from AAM,” said Greenberg. “NCL has a long track record of working to ensure access to safe and affordable foods and drugs—beginning with NCL’s work to pass the Food and Drugs Act in 1906, through our work today to ensure that patients have expanded and affordable access to the safe, effective treatments needed to maintain a healthy, positive quality of life.”

NCL has long advocated for availability of generic alternatives to brand name treatments as a cost-saver for Americans. In the United States, generic drugs represent 89 percent of all prescriptions dispensed, but account for only 27 percent of total drug costs. Over the decade from 2006-2015, the use of generic drugs saved the U.S. health care system approximately $1.46 trillion. In order to reduce out-of-pocket costs while receiving the same quality of care, NCL encourages consumers to ask their health care providers if there is a generic version of their prescription available.

For more information about NCL’s work in health, visit www.nclnet.org.

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About the National Consumers League

The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.