Fifth Third Bank has agreed to pay a $20 million fine to settle charges that it enforced unnecessary insurance on car buyers and created fake accounts in their names. According to the Consumer Financial Protection Bureau, the bank forced customers with car loans to purchase insurance, even if they already had coverage or obtained their own within 30 days.
This resulted in some customers being unable to afford the payments and around 1,000 individuals having their cars repossessed. Rosemary Shahan, president of Consumers for Auto Reliability and Safety, stated that losing one’s car can be devastating as most people rely on their vehicles for work, school, and medical appointments.
Fifth Third Bank has acknowledged its mistake and stated that it shut down the protection insurance program in 2019 and is taking corrective action. The $20 million fine will be used to reimburse 35,000 customers who were adversely affected, and the company has been banned from setting employee sales goals that promote the fraudulent opening of accounts.
RELATED STORIES
Shahan highlighted that car dealers sometimes make verbal promises that differ from the written contract or fail to print out the financing paperwork. She emphasized that people cannot be compelled to purchase insurance if they already have coverage. Shahan suggested that the best way to avoid scams is to join a credit union, obtain personal financing, and deal with a reputable bank. Fifth Third Bank was previously ordered to pay more than $21 million in fines in 2015 for discriminatory auto loan pricing and for illegal credit card practices.
Californians for Safety and Justice is a contributor to our fund for reporting on Criminal Justice. If you wish to aid us in supporting news in the public interest, please feel free to do so.
Indiana home sellers have been signing formal listing agreements with real estate brokers for years, but now buyers also need written agreements before purchasing a home. This is a result of one of 172 new laws passed by the Indiana General Assembly this year, which came into effect this month. The change is a result of a major settlement between home sellers and the National Association of Realtors, aimed at promoting transparency and consumer protection.
Maggie McShane, Senior Vice President of Government Affairs for the Indiana Association of Realtors, emphasized that professional representation is crucial for homebuyers as they navigate a complex and challenging market. She noted that many states already require written agreements for buyers, and consumers in those states have not opposed the practice. The new state law clarifies the relationship between buyers and real estate brokers, detailing terms and compensation.
It is important to note that buyers can still visit open houses without an agent. If the seller opts out of covering both listing and buyer agent commissions, buyers may need to pay their agent’s commission. McShane highlighted that the written agreement ensures that consumers and agents are on the same page regarding how the transaction should proceed. She also emphasized that everything in real estate is negotiable, and that the impact of the new law will become clearer over time as the market adapts.
As Oregon experiences its first major heat wave of the summer, there are some simple tips that can help keep your home cooler. With most of Oregon under a heat advisory over the holiday weekend and more hot days likely ahead, Cameron Starr, senior operations customer experience manager with Energy Trust of Oregon, recommends pulling down window shades during the hottest parts of the day to keep out heat and opening windows when temperatures cool down. Additionally, using a box fan or window-mounted fan on the shady side of the house during cool evenings can be effective in drawing in cool air.
Starr notes that excessive heat can be dangerous and advises people struggling with the heat to visit cooling centers or local businesses with air conditioning to cool down. During hot days, he also recommends using heat-generating devices such as ovens less frequently. Checking filters in air conditioners, especially window-mounted or portable units, is important, and manufacturers often recommend cleaning them every two weeks. For pet owners, it’s recommended to increase that cycle.
For people with fans, Starr advises checking to ensure the fan is spinning in the direction that cools, allowing you to feel a breeze rather than pulling cool air upward. Sealing off any gaps in doors and windows can also reduce the amount of cool air lost to the outside.
Energy Trust offers cash incentives for people to install systems that cool or provide heat during the winter. Additionally, federal tax credits are available for energy-efficient heat pumps. Get more stories like this via email.
Two major credit card companies in the US, Capital One and Discover Financial Services, have proposed a merger, but the deal has faced criticism from a consumer rights group. The $35 billion agreement was reached in February this year. Americans for Financial Reform, an organisation that promotes a fair financial system for consumers and includes civil rights and labour groups, has expressed concern that the merger would create difficulties for some people.
This is because Black and Latino families are more likely to have subprime credit scores and find it tough to pay their credit card bills, according to Patrick Woodall, managing director of policy at the organisation. He also fears that the merger will result in job losses at Discover’s customer care centre in Chicagoland. Capital One has promised to keep all Discover staff for a year, but after this time, the company could legally close all Discover operations.
The Bank Merger Review Modernization Act requires that federal regulators assess the effect of a merger on the community it serves. Illinoisans reportedly hold an average yearly credit card balance of around $7,000, and Woodall believes that the merger will lead to higher credit card costs that could hit consumers hard.
He also warns that the combined bank could be in trouble during an economic downturn and could cause problems across the broader economy and banking system. Federal regulators will hold a meeting on 19 July to gather community input. Woodall hopes that they will stand up for statutory requirements and block the merger.
