Protecting Consumers

Congresswoman Maloney has been an effective and tenacious champion for consumers. Her Credit Card Accountability Responsibility and Disclosure Act has saved consumers $12 billion a year since it was signed into law in 2009.  As Americans recover from our worst financial crisis since the Great Depression—brought on in part by financial firms’ unfair and predatory practices—it is imperative to protect the American consumer.

Overdraft Protections: Along with many of her Democratic colleagues, Congresswoman Maloney has introduced the Overdraft Protection Act. Financial institutions have increasingly used overdraft “protection” plans in a way that is deceptive and unfair to consumers, despite a Federal Reserve Rule that requires financial institutions to obtain consumers’ consent to opt into overdraft coverage. This problem is significant. The FDIC reports that the vast majority of large banks enroll consumers automatically in overdraft plans, charge an average of $35 per overdraft, and manipulate the order transactions to post in a way that maximizes overdraft fees. Read More

Identity Theft Protection: Each week we hear of a new loss of personal data that threatens thousands of Americans with identity theft. In this age of electronic banking and internet transactions, it is easier than ever to have your personal data stolen. Almost every state, including New York, has responded to this threat by enacting laws that allow individuals to protect themselves from identity theft by controlling access to their credit report and the personal data it contains. Congresswoman Maloney is working in Congress to expand this “file freeze” protection at the national level and enhance notification requirements when personal data is lost. By now, many victims have found out the hard way that once a criminal sets up false accounts in your name, it can be very difficult to clear your credit. In this case it may be years before you can buy a car, buy a house, or get a credit card. Read More

CFPB: Congresswoman Maloney proudly supported the creation of the Consumer Financial Protection Bureau (CFPB), a key component of the Dodd-Frank Wall Street Reform & Consumer Protection Act. The CFPB consolidates consumer protection and regulation of financial practice, and allows consumers the opportunity to provide feedback on and make inquiries about financial consumer products. When families are dealing with financial institutions to open a bank account, take out a loan to send a child to college, or apply for a mortgage, they will be able to trust that the process is fair and transparent. Read More

Credit Card Accountability Responsibility and Disclosure Act of 2009: In the 111th Congress, Congresswoman Maloney authored and passed the Credit Card Accountability Responsibility and Disclosure Act of 2009, which became law on May 22, 2009 [Public Law 111-24].   This bill eliminated credit card practices that the Federal Reserve had deemed unfair and deceptive to customers, and which had an anticompetitive effect, such as retroactive interest rate increases on existing balances, double cycle billing, and agreements that allowed issuers to raise rates “any time for any reason,” without even providing effective notice.  The law ended these practices that, according to some estimates, cost consumers $12 billion in one year alone. Read More