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WASHINGTON, D.C. - As President Clinton formally announces the resignation of Treasury Secretary Robert Rubin, Consumers Union is calling on the Clinton administration to make certain that Rubin's replacement is committed to helping protect consumers in the rapidly-changing financial marketplace.
Last week, the administration unveiled a package of proposed consumer protections for financial services, such as full disclosure of credit card terms, consumer control over the privacy of their financial information, and more access to low-cost banking services.
Consumers Union is now asking the administration to ensure that the new treasury secretary is dedicated to turning these proposals into meaningful legislation.
"This is a critical time for financial reform in the United States," said Mary Griffin, counsel for Consumers Union. "There are two major bills before Congress, one that could dramatically change our bankruptcy system and one that could seriously alter the financial services industry. The new treasury secretary must be committed to getting the administration's consumer proposals included in these bills and making passage contingent on their inclusion."
"We were pleased to see the administration make progress last week in putting some good proposals on the table," said Frank Torres, legislative counsel for Consumers Union. "These proposals would help protect consumers' privacy and pocketbooks. Now we want to see the new treasury secretary focus on turning the proposals into actual legislation."
Consumers Union believes that the current financial services bill and bankruptcy bill in Congress give unfair advantages to banks and financial firms, while failing to protect the interests of consumers.
Consumer Union says the new treasury secretary should act quickly to see that these bills are modified with the measures proposed by the administration, such as:
· Financial Privacy: Consumers should have control over whether and how their financial information is shared. The new treasury secretary should push to require informed consent before banks and other firms share or sell information about consumers' financial dealings.
· Access to Low-Cost Bank Services: The 48 million households who keep $1,000 or less in their checking accounts are being nickel-and-dimed to death with fees. These families, along with the 12 million families without any checking account, need a break - a limited low-cost account for their basic bank needs would help many families. The new treasury secretary should promote access to basic bank services at affordable prices for all Americans.
· Honest and Fair Credit Card Deals: Consumers are often unaware of hidden terms when swamped with credit card offers. We would like to see the new treasury secretary call for full disclosure of required payment due dates, applicable late payment penalties, and permanent interest rates. The secretary should also push for consumers to be informed of how long it will take to pay off their credit card bills and how much they will pay if they are only making the minimum payment.
Consumers Union, Publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumers. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers.
