Read the Report
In honor of National Consumer
Protection Week, OSPIRG today released a new compilation of tips and
information designed to help consumers avoid ripoffs, fraud, and
unfair practices made worse by the recession.
“Consumers in a struggling economy
stand to be especially harmed by unfair practices, scams, ripoffs,
and fraud,” said OSPIRG Consumer Advocate Matt Wallace. “All too
often there is an information gap between corporations and consumers,
and this guide attempts to bridge some of that gap.”
The consumer tips are focused on three
main subjects: credit cards, credit reports, and identity theft.
Some highlights from the compilation
include the exposure of unfair credit card company practices, such
as:
Changing Contracts: Credit card
terms keep changing. Read the fine print and find this disclosure:
“We reserve the right to change the terms (including the APRs) at
any time for any reason, including no reason.” A fixed rate is
fixed only until the bank provides at least 15 days notice that it
isn’t.
Penalty Fees: Companies slap
consumers with fees by making it more likely they will be late paying
their bills. Many have shortened the time between when a bill is sent
and comes due. The industry has all but eliminated the grace periods
for bill payment, to ratchet up late fee income. Many companies claim
a bill is late unless received by 11am on the due date; and others
may change a bill’s due date from month to month. And;
Universal Default: A consumer’s
interest rate can skyrocket even if the consumer always pays the bill
on time and never misses a payment. Some card issuers will raise the
rate if a consumer in good
standing to them merely inquires about
a car loan, opens a new credit card, or allegedly misses a payment on
another account.
The consumer tips also give advice to
consumers on how to check their credit report while avoiding credit
agency ripoffs and tips on how to avoid identity theft.
This
week is the 11th
Annual National Consumer Protection Week. The release of OSPIRG's
Consumer Tips for the Downturn is one of several events promoting the
important work being done in Oregon
to protect and educate Oregon consumers. OSPIRG is joining with
Attorney General John Kroger, along with Sen. Suzanne Bonamici, Chair
of the Senate Consumer Protection Committee; Sen. Larry George, Vice
Chair; Rep. Paul Holvey, Chair of the House Consumer Protection
Committee; Rep. Jim Weidner, Vice Chair; Rep. Chuck Riley, Vice
Chair; and Cory Streisinger, Director of the Department of Consumer
and Business Services; and other advocacy groups to raise the profile
of important consumer issues.
Other
events this week include:
Monday 3/2
-National
Consumer Protection Week kicks off!
-House
Consumer Protection Committee holds a public hearing on children’s
product safety (HB 2367 and HB 2792).
Tuesday 3/3
-Department
of Justice launches Oregon Scam Alert Network.
-Avoiding
Loan Modification Scams courtesy of Department of Consumer
and Business Services.
-Senate
Consumer Protection Committee explores property rights of
manufactured home owners (SB 510) and foreclosure mediation
strategies (SB 628).
Wednesday 3/4
-OSPIRG
offers Consumer Tips for the Downturn.
-House
Consumer Protection Committee looks at ticket purchaser protection
(HB 2673, the Hannah Montana Bill) and landlord-tenant
responsibilities (HB 2613 and HB 2614).
Thursday 3/5
-Department
of Justice’s Top Ten Consumer Complaint Report of 2008 is
released.
-Senate
Consumer Protection Committee discusses internet service provider
customer relations (SB 485) and affordable housing insurance
(SB 539).
Friday 3/6
-Maintaining
Insurance Coverage in a Tight Economy FAQ provided by Department
of Consumer and Business Services.
-House
Consumer Protection Committees tackles automatic contract renewal
provisions (HB 2631).
###
