April 04, 2017

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

Washington, DC—The National Consumers League (NCL), the nation’s pioneering consumer and labor advocacy organization, has announced its opposition to the confirmation of President Trump’s nominee to the Supreme Court, Judge Neil Gorsuch, citing concerning decisions he made as a federal judge that seem to always favor large corporations over the interests of workers and consumers.

“Indeed, Judge Gorsuch has displayed a callousness toward workers and consumers,” said NCL Executive Director Sally Greenberg. “In one example, Gorsuch supported the firing of a truck driver who was forced to leave his broken down truck in order to avoid freezing to death in subzero weather after calling for help to no avail. In another case, in which an employee was killed by electrocution and the company had not given him full job safety training, OSHA decided the employer failed to properly train its worker, and fined the employer. Judge Gorsuch disagreed with the fine. His argument: that the case was an example of a health-and-safety watchdog agency having too much power.”

On consumer issues, Gorsuch ruled against a patient who was severely injured by a medical implant that was supposed to help her recover from spinal surgery. When the Consumer Product Safety Commission (CPSC) was concerned that strong, small magnets in products were causing serious injury to kids who swallowed them and created regulations to reduce the risk, Judge Gorsuch sided with the manufacturer of the magnets, ruling that the CPSC could not regulate the products, in spite of the Commission’s evidence that kids were at risk.

Finally, Judge Gorsuch’s opinions have suggested that he fully supports the right of corporations to force employees and consumers who have been harmed into arbitration—through clauses in the “fine print” of lengthy contracts—preventing them from taking their cases to court. Gorsuch wrote that arbitration clauses should be enforced even when the parties don’t agree on the details of the arbitration. “There is significant evidence that arbitration in these situations almost always favors the employer or corporation, because the ordinary safeguards of litigating a case in court are not available,” said Greenberg.

Former President Barack Obama outlined what he believed made a person qualified to serve on the Supreme Court, and NCL agrees that fine academic credentials are not enough.

Obama noted the importance of having Justices with “experience that suggests he or she views the law not only as an intellectual exercise, but also grasps the way it affects the daily reality of people’s lives in a big, complicated democracy, and in rapidly changing times.”

“In both his labor and consumer decisions, Judge Neil Gorsuch fails the test of sympathizing with—and protecting the rights of—the average worker and consumer,” said Greenberg. “For these reasons, the National Consumers League opposes the confirmation of Judge Neil Gorsuch to the Supreme Court of the United States.”

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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.

March 24, 2017

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

Washington, DC—The National Consumers League (NCL) is welcoming the U.S. Supreme Court’s decision in Czyzewski v. Jevic Holding Corporation, in which the Court ruled that a bankruptcy settlement that effectively wiped out employee claims against a trucking company while paying off more junior creditors impermissibly sidestepped the U.S. Bankruptcy Code’s creditor priority.

“This is great news for workers,” said Sally Greenberg, executive director of NCL, which submitted an amicus brief with the National Employment Law Project (NELP) in the case.

Jevic Transportation filed for Chapter 11 bankruptcy after being purchased in a leveraged buyout.

The amicus brief signed by NCL and NELP argued that:

“This case both illustrates and aggravates the pervasive problem of workplace injustices due to unequal bargaining power. Unlike many wage-earners, the nearly 1,800 truck driver employees of Jevic represented by petitioners have been able to sustain this lengthy and expensive litigation because they are well organized and have been well represented, including by pro bono counsel. However, they have still received no relief on their claim for accrued but unpaid wages and benefits more than seven years after they were laid off without notice in violation of state law. The structured dismissal order sanctioned by the Third Circuit has opened a bankruptcy loophole enabling their employer to escape without paying them. This represents an additional opportunity for wage theft – employers failing to pay employees what they have earned, without effective accountability – at a time when, as U.S. Department of Labor and independent studies collected by NELP reflect, wage theft has reached epidemic proportions nationwide. Unless this Court acts to close it, the bankruptcy loophole opened by the decision below is likely to result in many thousands of additional employees being denied what they have earned. Moreover, as with other forms of wage theft, the vast majority of those employees will not have the bargaining power to secure their rights or the resources to bring the problems to the courts’ attention.”

The workers’ priority claims entitle them to receive over $8 million, but collection is conditioned on the estate having those funds and it might not, so this is not a sure thing. Nevertheless, the principle behind the decision is what is critical.

“NCL believes that the Supreme Court has vindicated the claims of these workers,” said Greenberg. “And a 6-2 decision reversing the Third Circuit, with only Justices Alito and Thomas dissenting, sends a clear message that the Court recognizes the rights of employees under the U.S. Bankruptcy Codes.“

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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.

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.

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.

February 15, 2017

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.