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NCLC in the News

Select media clips. Journalists interested in speaking with an expert at the National Consumer Law Center should contact Jan Kruse (This email address is being protected from spambots. You need JavaScript enabled to view it. or 617.542,8010).

Press Releases

Congress Moves to Take Away Consumers’ Right to Day in Court

For Immediate Release: July 20, 2017 || Contacts: Lauren Saunders, This email address is being protected from spambots. You need JavaScript enabled to view it.; Jan Kruse, This email address is being protected from spambots. You need JavaScript enabled to view it.. 617.542.8010

Congress Moves to Take Away Consumers’ Right to Day in Court

House, Senate launches effort to repeal CFPB rule limiting forced arbitration clauses that block class actions against banks, payday lenders

WASHINGTON, D.C. – Today, Senator Mike Crapo (R-ID) and Congressman Jeb Hensarling (R-TX) announced that the Senate and House have introduced resolutions to use the obscure Congressional Review Act (CRA) to block a new Consumer Financial Protection Bureau (CFPB) rule that would restore critical consumer rights. The CFPB’s rule, released last week, prohibits the use of forced arbitration clauses in financial service contracts with class action bans. Congress now has 60 legislative days to repeal the consumer watchdog’s rule by a simple majority vote.

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CFPB Rule Restores Consumers’ Day in Court Over Financial Misconduct

FOR IMMEDIATE RELEASE: JULY 10, 2017 || Contacts: Lauren Saunders (lsaunders(at)nclc.org) or Jan Kruse (jkruse(at)nclc.org; 617.542.8010)

Rule Addresses Forced Arbitration of Claims Involving Credit Cards, Payday Loans, Other Financial Products

(WASHINGTON) Today, advocates at the National Consumer Law Center (NCLC) and an eminent scholar of arbitration law applauded the Consumer Financial Protection Bureau’s (CFPB) final rule that restores consumers’ right to join together in class actions to hold banks, payday lenders and other companies accountable when they break the law.

“The CFPB’s rule restores ordinary folks’ day in court for widespread violations of the law. Forced arbitration is simply a license to steal when a company like Wells Fargo commits fraud through millions of fake accounts and then tells customers: ‘Too bad, you can’t go to court and can’t team up; you have to fight us one by one behind closed doors and before a private arbitrator of our choice instead of a public court with an impartial judge, said Lauren Saunders, associate director of the National Consumer Law Center.

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NCLC Attorney to Testify at U.S. Department of Education In Support of Important Protections against For-Profit School Fraud

For Immediate Release: July 10, 2017 || Contact: Jan Kruse (jkruse(at)nclc.org) or 617.542.8010

Student Borrower Defense and Gainful Employment Rules Would Hold Predatory Schools Accountable to Students and Taxpayers

BOSTON - Today, National Consumer Law Center attorney Joanna Darcus will testify at a public hearing at the U.S. Department of Education in Washington, D.C. in support of protecting students and taxpayers from fraud and abuse through strong borrower defense and gainful employment regulations. Read her testimony.

Joanna Darcus made the following statement regarding her July 10 testimony:

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National Consumer Law Center Advocates Condemn U.S. Department of Education Blocking Important Protections against For-Profit School Fraud

For Immediate Release: July 6, 2017 || Contact: Jan Kruse (jkruse(at)nclc.org) or 617.542.8010

Student Borrower Defense Rules Would Hold Predatory Schools Accountable to Students and Taxpayers

BOSTON – Today, advocates at the National Consumer Law Center applauded a lawsuit by 19 Attorneys General, led by Massachusetts Attorney General Maura Healey, against the U.S. Department of Education for delaying and potentially revoking critical protections for students and taxpayers when students are defrauded by for-profit schools or schools close abruptly. Secretary of Education Betsy DeVos announced that the Department will delay and reexamine the Borrower Defense regulations, which were scheduled to go into effect on July 1. The Borrower Defense rules offer a pathway to discharge of student loans, prevent forced arbitration of fraud claims, and protect taxpayers by ensuring that schools that break the law or shut their doors set aside funds to reimburse their students.

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New Reforms Will Improve Credit Reporting Accuracy for Millions of Consumers

For Immediate Release: June 28, 2017 || Contact: Jan Kruse (jkruse(at)nclc.org) or 617.542.8010

Boston − Effective July 1, 2017, the three largest credit bureaus−Experian, Equifax, and TransUnion−will no longer report tax liens and civil judgments on consumer credit reports, and medical debt less than six months old will not be reported as of September 1. As a result, an estimated 12 million people may realize improved credit scores. The change is the result of a lawsuit brought by attorneys general in 31 states against the “Big Three” credit reporting agencies for including “mixed file” errors in credit reports.

The following statement is by National Consumer Law Center attorney Persis Yu.

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Class Actions Matter: Consumers Mislabeled as Terrorists Join in $60 Million Verdict against TransUnion for Violating Key Consumer Protection Law

For Immediate Release: June 21, 2017 : Contact: Jan Kruse (jkruse(at)nclc.org or 617.542.8010)

(BOSTON) A record-breaking verdict awarded yesterday by a California jury against the TransUnion credit reporting agency demonstrates the importance of class actions and of strong consumer protection laws, according to advocates at the National Consumer Law Center. The jury awarded a nationwide class of over 8,000 consumers nearly $60 million in statutory and punitive damages. The jury found that TransUnion violated the Fair Credit Reporting Act when it carelessly misidentified the consumers as terrorists and criminals in their credit reports, confusing the consumers with similarly named individuals on a government watch list. The verdict is the largest FCRA verdict to date. 

Advocates from National Consumer Law Center noted that the case demonstrates the importance of class actions and the civil justice system, including consumer protection laws that allow injured consumers to seek relief in court. They noted that Trans Union had defended its poor matching procedures by arguing that consumers weren't financially harmed by the inaccuracies.

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Congress Must Defend Service Members from Predatory Financial Scams

For Immediate Release: June 21, 2017 || Contacts

Consumer Groups Applaud Reform Applaud Legislation to Enforce Financial Protections for Military Personnel

WASHINGTON, D.C. – Public Citizen, Americans for Financial Reform, the Consumer Federation of America and the National Consumer Law Center applaud U.S. Sens. Jack Reed (D-R.I.), Sherrod Brown (D-Ohio) and their colleagues for reintroducing the Military Consumer Enforcement Act, which would empower the U.S. Consumer Financial Protection Bureau (CFPB) to oversee and enforce certain provisions of the Servicemember Civil Relief Act (SCRA).

Originally passed during World War II and modernized in 2003, the SCRA was intended to ease economic burdens on military personnel and ensure military readiness by protecting service members against common banking abuses.

“Predatory schemes frequently target service members and their families,” said Lisa Donner, executive director of Americans for Financial Reform. “This legislation grants the CFPB the authority it needs to effectively enforce crucial SCRA protections that make sure banks can’t put military families out on the street or seize their cars in violation of the law.”

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Department of Education Intends to Revisit Rules that Provide Relief and Protections to Students, Taxpayers from School Fraud

FOR IMMEDIATE RELEASE: JUNE 14, 2017 Contacts: Joanna Darcus, jdarcus(at)nclc.org, 617.542.8010, or Stephen Rouzer, srouzer(at)nclc.org, 202.595.7847

Secretary DeVos intends to delay borrower defense rule that would help students avoid unfair debt and holds predatory schools accountable.

BOSTON – Today, National Consumer Law Center advocates deplored the decision by Secretary of Education Betsy DeVos to revise rules designed to protect federal student loan borrowers—including a disproportionate share of low-income students, women, people of color, and veterans—and taxpayers from predatory schools and abrupt school closures.

Together, the borrower defense and gainful employment rules provide important safeguards for students and taxpayers. “These rules were created through robust negotiation processes,” said Persis Yu, director of the National Consumer Law Center’s Student Loan Borrower Assistance Project. “Starting over wastes taxpayer money and creates uncertainty for students who are wondering how to protect themselves from being ripped off by predatory schools.”

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