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Overturning the rule means big banks profit at consumers' expense, the AGs argue

By James R. Hood of ConsumerAffairs
April 9, 2025

UPDATE:Despite the pleas of consumer advocates the House voted largely along party lines to trash the consumer protection overdraft bill, with Republicans mostly voting to do so and Democrats largely opposing it.

Key Points:

  • New York AG Letitia James and 22 other attorneys general are urging the U.S. House to reject a resolution that would reverse the Consumer Financial Protection Bureaus 2024 rule capping overdraft fees.

  • The CFPB rule applies only to large banks with over $10 billion in assets, limiting excessive fees that can damage credit and force account closures.

  • Critics say overturning the rule would prioritize bank profits over consumers, as overdraft fees often exceed the overdraft amount and disproportionately hurt low-income Americans.


A coalition of 23 attorneys general, led by New York Attorney General Letitia James, has sent a letter to U.S. House leaders urging them to vote against a resolution that would overturn a key Consumer Financial Protection Bureau (CFPB) rule limiting overdraft fees charged by the nations largest banks.

The CFPB rule, finalized in 2024, aims to rein in excessive overdraft fees, which have long been a lucrative but controversial source of revenue for banks. It applies only to banks with more than $10 billion in assets and is designed to protect consumers from predatory charges when they accidentally overdraw their checking accounts.

Overturning this rule will only do one thing: help big banks profit at your expense, said AG James in a statement. Accidentally overdrawing your account by a few dollars shouldnt result in an outrageous fee.

Banks favor scrapping the consumer protection measure, which they say does more harm than good."Its important to remember that government-imposed price controls only harm the consumers theyre purported to help," the Consumer Bankers Associationargues in a statement on its website.

Overdraft fees: A costly burden

The average overdraft fee is around $35, often far exceeding the actual overdrawn amount. In 2023 alone, U.S. banks collected $5.8 billion in overdraft-related revenue. According to the AG coalition, a $35 fee on a $26 overdrafttypically repaid within three daysis equivalent to an annual interest rate of 16,000%.

The attorneys general argue that such fees are not only excessive but also disproportionately harm low-income consumers, frequently leading to credit damage and involuntary account closures that can push people out of the banking system altogether.

The CFPB rule, if preserved, would force banks to treat overdraft fees like interest on a loan, making their true cost more transparent and subject to regulatory scrutiny.

All eyes on the House

The House is expected to vote on House Joint Resolution 59, which would nullify the CFPBs overdraft rule. The Senate narrowly passed its version last month in a 5248 vote, with Republican Senator Josh Hawley(Mo.) joining Democrats in support of the consumer protection.

Supporters of the CFPB rule point out that many major banks including Citigroup, Capital One, and Ally Bank have already eliminated overdraft fees voluntarily, demonstrating that such charges are not essential for maintaining basic banking services.

Joining AG James in signing the letter are attorneys general from California, Illinois, Massachusetts, North Carolina, and other states, as well as the Hawaii Office of Consumer Protection.

With tens of millions of consumers affected by overdraft policies each year, the outcome of this vote could have major implications for bank customers nationwide particularly those living paycheck to paycheck.




Posted: 2025-04-09 20:55:47

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Consumer News: Recall issued for more than 10 million grill brushes sold at Home Depot
Fri, 27 Mar 2026 16:07:08 +0000

Multiple injuries have been reported from ingestion of wire bristles

By Mark Huffman of ConsumerAffairs
March 27, 2026
  • Nexgrill recalls more than 10.2 million grill brushes over ingestion hazard

  • Loose metal bristles can stick to food and cause serious internal injuries

  • Products sold at Home Depot stores and online from 2015 through 2026


Just in time for the outdoor grilling season, Nexgrill is recalling more than 10.2 million metal wire bristle grill brushes after reports that small metal pieces can break off and pose a dangerous ingestion hazard.

According to the recall notice issued this week, the brushes can shed wire bristles during use. Those bristles may remain on grill surfaces or attach to food, creating a risk that consumers could unknowingly swallow them. In some cases, ingestion can lead to serious internal injuries requiring medical treatment or surgery.

The brushes were widely sold at Home Depot stores nationwide and online at Homedepot.com between 2015 and 2026, typically priced between $5 and $15.

Reports of injuries

Nexgrill says it has received at least 68 reports of bristles detaching from the brushes. Among those incidents are five cases in which consumers swallowed the metal fragments and required medical attention to remove them from the throat or digestive tract.

The recall covers several Nexgrill grill brush models with black plastic or wooden handles measuring between 18 and 21 inches long. Affected model numbers include 530-0024, 530-0024G, 530-0034, 530-0039, 530-0041 and 530-0042. The brand name Nexgrill appears on each product.

What consumers should do

Consumers are urged to stop using the recalled grill brushes immediately

Nexgrill is offering full refunds in the form of a gift card. To receive a refund, consumers must register for the recall through the companys website, upload a photo of the brush along with a provided registration code and their initials, and follow instructions after receiving confirmation.

The company will then provide guidance on how to properly dispose of the recalled product.

For more information, consumers can contact Nexgrill toll-free at 800-942-1498 between 9 a.m. and 5 p.m. ET Monday through Friday, or visit the companys recall page online.


Read More ...


Consumer News: Heavy social media use tied to declines in reading skills among adolescents
Fri, 27 Mar 2026 16:07:08 +0000

A new study links consistent social media use with declines in literacy

By Mark Huffman of ConsumerAffairs
March 27, 2026
  • Regular social media use during early adolescence is linked to weaker reading and vocabulary development over time, new research shows.

  • Teens who spend more time on social platforms are more likely to struggle with recognizing and pronouncing words.

  • The findings come as governments worldwide weigh restrictions on youth social media use, including Australias recent ban for children under 16.


If your childs grades have started to suffer, there may be a reason other than not doing their homework.

A new study from the University of Georgia is raising concerns about how frequent social media use may be shaping young minds, linking higher daily use among adolescents to declines in reading ability and vocabulary development over time.

The research, published in the Journal of Research on Adolescence, analyzed longitudinal data from more than 10,000 participants in the ongoing Adolescent Brain Cognitive Development study. Tracking children from around age 10 over the course of six years, researchers found that those who used social media more frequently showed weaker progress in reading and vocabulary skills across four years.

Lead author Cory Carvalho said the findings reflect how the brain adapts to repeated behaviors.

The brain is like a muscle, Carvalho said. If kids spend over eight hours a day using social media, thats what their brains are going to adapt to and be wired for.

What exactly is time cost?

Researchers suggest the issue may be partly due to what they call a time cost. Time spent scrolling, posting, and engaging online may displace activities like reading, which are critical for language development.

Theres a time cost to social media use, Carvalho said. If youre spending time doing one thing, that means youre not spending time doing another thing.

The study also found that adolescents who frequently use social media tend to struggle more with attention control. Constant notifications and multitasking may fragment focus, though researchers note the relationship could work both ways teens who already have trouble concentrating may be more drawn to social platforms.

Not entirely a bad thing

Despite the concerns, the researchers emphasized that social medias effects are not entirely negative. Adolescents who used social media more often demonstrated faster information processing speeds and quicker reaction times in screen-based tests.

Its not necessarily that social media is having only these negative effects or only these positive effects, said co-author Niyantri Ravindran. But the negative effects on vocabulary and reading are more expected because social media may reduce opportunities to engage in higher-level cognitive skills.

The study arrives at a time of growing global debate over childrens access to social media. Australia recently became the first country to ban social media use for children under 16, and other nations are considering similar measures. Days ago, a jury in New Mexico found Meta, the parent company of Facebook and Instagram, liable in the death of a child. Meanwhile, platforms are increasingly rolling out age verification tools.

Researchers say the findings add to the urgency of understanding how digital habits affect childhood development.

Recommendations

To help mitigate potential downsides, the studys authors recommend that parents limit screen time, particularly before bedtime, and consider delaying smartphone ownership. For families needing to stay in touch, simpler phones without social media access may be a practical alternative.

Social media is new, so everybodys trying to figure out what we do with this new paradigm, Carvalho said. Hopefully, we settle on some norms that work for kids and not for profits.


Read More ...


Consumer News: OECD warns inflation is likely to nearly double in 2026
Fri, 27 Mar 2026 16:07:08 +0000

The international economic group predicts U.S. inflation could reach 4%

By Mark Huffman of ConsumerAffairs
March 27, 2026
  • Global inflation is now projected to reaccelerate to around 4% in 2026, reversing earlier expectations of steady decline.

  • The OECD warns energy shocks from the Middle East conflict are the primary driver, with oil prices surging and feeding through to consumer costs.

  • U.S. inflation could climb as high as 4.2% or more, with risks of a prolonged period above central bank targets.


The U.S. inflation rate was fairly moderate at 2.4% before February 28. But after the U.S.and Israel launched an attack on Iran, oil prices have surged. Now, the Organization for Economic Co-operation and Development (OECD)predicts the world will face higher-than-expected inflation for the rest of the year, including the United States.

The United States faces particularly strong upward pressure. OECD projections suggest inflation could reach about 4.2% in 2026 well above previous estimates and among the highest rates in advanced economies.

The Paris-based organization said recent disruptions to energy and commodity markets triggered by escalating conflict in the Middle East have sharply altered the inflation trajectory that had been expected to ease this year.

Higher oil prices affect everything

At the center of the shift is a surge in oil prices, which have jumped above $100 per barrel after supply disruptions linked to the conflict. Higher fuel costs are feeding through to transportation, food, and industrial inputs, raising prices across a wide range of goods and services.

Other major economies are also seeing upward revisions. In the United Kingdom, for example, inflation is now expected to hit around 4% in 2026, reflecting both higher energy costs and broader price pressures.

The report marks a turning point in the global inflation narrative. After two years of tightening monetary policy and gradual disinflation, the OECD now sees energy prices as the dominant short-term driver of inflation risks.

If elevated oil and commodity prices persist, inflation could remain above central bank targets longer than expected, forcing policymakers to keep interest rates higher for longer.

The OECD emphasized that the duration of the inflation spike depends heavily on how long the geopolitical disruption lasts. A prolonged period of constrained energy supply would continue to push up business costs and consumer prices, while also weighing on economic growth.


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Consumer News: Netflix is raising subscription prices again
Fri, 27 Mar 2026 16:07:08 +0000

As viewership shifts away from TV, the cost of streaming is rising

By Mark Huffman of ConsumerAffairs
March 27, 2026
  • Netflix has announced another round of subscription price increases across several of its plans.

  • The company cites rising production costs and continued investment in original content as key reasons.

  • The changes are expected to roll out gradually, affecting both new and existing subscribers.


If you have a Netflix subscription, almost regardless of the level, prepare to pay more.

Netflix is once again increasing the cost of its subscriptions, marking the latest in a series of price hikes as the streaming giant doubles down on original programming and global expansion. Netflix last raised rates in January 2025.

The company confirmed that several of its plans will see higher monthly fees in the coming months, with adjustments varying by region and subscription tier. Most plans will increase by $1. While Netflix did not present the move as abrupt, the increases reflect a broader industry trend: streaming is becoming more expensive as competition intensifies and content budgets swell.

In a statement, Netflix emphasized that the price changes are tied to its ongoing investment in content.

As we continue to deliver more value to our members through a wider variety of high-quality series, films, and live programming, we occasionally ask our members to pay a bit more, the company said.

Where costs will rise most

The standard and premium plans are expected to see the most noticeable increases, while lower-cost, ad-supported tiers may remain unchanged in some markets. Analysts say this strategy allows Netflix to retain price-sensitive users, while encouraging upgrades from those seeking an ad-free experience.

The timing of the increase comes as Netflix continues to report steady subscriber growth after a turbulent period in recent years. Its push into live events, gaming, and international productions has broadened its appeal, but also significantly increased operational costs.

For example, this week, Netflix streamed MLB Opening Night, a game between the New York Yankees and San Francisco Giants.

Other streamers also raising rates

Industry experts note that Netflix is not alone. Competitors such as Disney+, Hulu, and HBO Max have also raised prices recently, signaling a shift away from the low-cost model that defined early streaming.

As viewership continues to shift from traditional TV to the internet, the era of cheap streaming is ending. Consumers are now paying closer to what traditional cable once cost just spread across multiple services.

For subscribers, the impact will depend on their current plan and region. Existing users will typically receive advance notice before the new pricing takes effect, giving them the option to change or cancel their subscription.


Read More ...


Consumer News: OECD warns inflation is likely to nearly double in 2026
Fri, 27 Mar 2026 13:07:07 +0000

The international economic group predicts US inflation could reach 4%

By Mark Huffman of ConsumerAffairs
March 27, 2026
  • Global inflation is now projected to reaccelerate to around 4% in 2026, reversing earlier expectations of steady decline

  • The OECD warns energy shocks from the Middle East conflict are the primary driver, with oil prices surging and feeding through to consumer costs

  • U.S. inflation could climb as high as 4.2% or more, with risks of a prolonged period above central bank targets


The U.S. inflation rate was fairly moderate at 2.4% Before February 28. But after the U.S.and Israel launched an attack on Iran, oil prices have surged. Now, the Organization for Economic Co-operation and Development predicts the world will face higher-than-expected inflation for the rest of the year, including the United States.

The United States faces particularly strong upward pressure. OECD projections suggest inflation could reach about 4.2% in 2026well above previous estimates and among the highest rates in advanced economies.

The Paris-based organization said recent disruptions to energy and commodity marketstriggered by escalating conflict in the Middle Easthave sharply altered the inflation trajectory that had been expected to ease this year.

Higher oil prices affect everything

At the center of the shift is a surge in oil prices, which have jumped above $100 per barrel after supply disruptions linked to the conflict. Higher fuel costs are feeding through to transportation, food, and industrial inputs, raising prices across a wide range of goods and services.

Other major economies are also seeing upward revisions. In the United Kingdom, for example, inflation is now expected to hit around 4% in 2026, reflecting both higher energy costs and broader price pressures.

The report marks a turning point in the global inflation narrative. After two years of tightening monetary policy and gradual disinflation, the OECD now sees energy prices as the dominant short-term driver of inflation risks.

If elevated oil and commodity prices persist, inflation could remain above central bank targets longer than expected, forcing policymakers to keep interest rates higher for longer.

The OECD emphasized that the duration of the inflation spike depends heavily on how long the geopolitical disruption lasts. A prolonged period of constrained energy supply would continue to push up business costs and consumer prices, while also weighing on economic growth.


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