Financial Reform

Tips For OPM & Other Data Breach Victims-What Can You Do To Avoid Identity Theft & Other Harms??

The latest breach of up to 18 million or more federal government employee files held by US OPM is an example of everything that's wrong with data security and data breach response mechanisms today. Agencies and companies hold too much information for too long and don't protect it adequately. Then, they wait months before informing victims. Then, they make things worse by offering weak, short-term help such as credit monitoring. Our main message: your best protection against identity theft is the security freeze, not the often-offered, under-achieving credit monitoring. Unfortunately, the potential harms from data breaches such as the OPM breach are much broader than identity theft.

Was it 4 million, 14 million or 18 million records breached (how many times) (likely) by Chinese hackers? Whose fault was it? The USOPM director says no one's. Really? Perhaps the worst data breach ever raises lots of questions, but I haven't heard any good answers. Federal employees, their families, their friends and their neighbors -- because all of them could be victims -- deserve better answers, just as they deserve better service than USOPM's credit monitoring provider is giving them.

Two big consumer stories so far this week offer hope to consumers victimized by credit bureau errors and, more generally, by an inability to take credit bureaus, credit card companies, banks or payday lenders to court when harmed. On Monday, New York's Attorney General Eric Schneiderman signed a groundbreaking agreement with the Big Three credit bureaus, Equifax, Trans Union and Experian. Then today, the CFPB released a report finding that consumer legal rights are infringed by small-print forced arbitration clauses in credit card and other contracts.  The CFPB will hold a webcast public hearing at 11am Eastern time today (Tuesday) to discuss the report's findings and next steps.

Media Hit | Financial Reform

Credit Bureaus’ Deal to Improve Accuracy ‘Huge’ for Consumers

(Bloomberg) -- Buying homes, getting jobs and borrowing money will be easier after an agreement by the three biggest U.S. consumer credit reporting services with New York.[...] “It’s a sea change in the way the credit bureaus treat complaints,” said [U.S. PIRG's Ed] Mierzwinski. “The credit bureaus have been run by computers for years now. They’re going to have to hire more people and actually verify that what a creditor said is true.”

As if recent privacy breaches at the online tax preparer Turbotax and the health insurer Anthem weren't enough, it turns out that low-tech hacks can trick the vaunted Apple Pay system into giving up cash to thieves, too. Meanwhile, while the administration's blueprint for a Privacy Bill of Rights in 2012 was excellent, its new legislative draft from the Department of Commerce could have been written by the U.S. Chamber of Commerce. There is some good news on privacy, though.

UPDATED: Opposition to a controversial provision authored by Citibank forced House leaders to delay consideration of the "CRomnibus" appropriations package just hours before funding for the federal government expired at midnight Thursday. Eventually the bill passed narrowly with the Wall Street provision intact. Action now shifts to the Senate, which has a 48-hour window to pass the bill, but any one Senator can block it under Senate rules. The provision would again allow Wall Street banks to place risky bets with taxpayer-backed funds, and require taxpayers to bail them out if the bets fail, repealing a key protection added in the 2010 Wall Street reform law. 

News Release | NMPIRG | Democracy, Financial Reform

TODAY SUPREME COURT RULED FOR ANOTHER FLOOD OF BIG MONEY

Today the U.S. Supreme Court ruled in McCutcheon v. FEC to strike down overall, or aggregate, contribution limits to candidates and political committees. U.S. PIRG research found that this ruling could bring $1 billion in additional campaign contributions from fewer than 2,800 elite donors through the 2020 election cycle.

Report | NMPIRG, U.S. PIRG, Demos | Democracy, Financial Reform

"McCutcheon" Could Add Over $1 Billion in Contributions to Next Four Elections

This term, the Supreme Court is considering a challenge to aggregate contribution limits in a case called McCutcheon v. FEC. The current limit on what one person may contribute to all federal candidates, parties and PACs is $123,200. Absent this limit, one wealthy donor would be permitted to contribute more than $3.5 million to a single party’s candidates and party committees (plus a virtually unlimited amount to supportive PACs).

Reining In Wall Street

Standing up for consumers against reckless banking and financial practices.

Issue | Health Care

Fighting The High Cost Rx Drugs

Brand-name drug companies have been paying off generic drug makers to delay competition and keep prices high. This widespread pay-for-delay scheme needs to be put to an end. 

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