Legislator at Law

Millions of Americans, and thousands of Marylanders, are struggling to escape debt.  Many consumers have been hammered by credit card companies like Bank of Americawho increase interest rates retroactively, even on consumers that had never missed a payment.  Many have seen home values plummet, and neighborhoods deteriorate, because borrowers could not keep up with expensive subprime loans aggressively marketed to poor communities by banks like Wells Fargo.  The City of Baltimore even sued Wells Fargo, alleging that ”reverse redlining” practices were destroying City neighborhoods.  And notwithstanding the fiscal crisis that has nearly destroyed the global economy, we know that Wall Street banks continue to pay record bonuses.

So why, then, do Bank of America and Wells Fargo get the privilege of holding state dollars?  Why do they continue to get lucrative state banking contracts?  There is an alternative.  We can move our money. (more…)

I’ll do a full post on this issue shortly, but for now be sure to check out Eileen Ambrose’s article in the Sun about the “Move Your Money” movement, with some discussion of my Maryland “Move Your Money” legislation.

http://www.baltimoresun.com/business/money/bal-bz.ml.ambrose07mar07,0,4991370.story

I used to like Ben Stein.  Sure, he was a patronizing Nixonite, but how can you hold that against Ferris Bueller’s stultefying, roll calling teacher?

Unfortunately, Stein has a new starring role – ripping off consumers.  Stein now can be found on TV’s across our area as a pitchman for FreeScore.com, a site that urges consumers to obtain a “free” credit score from their website.  The problem is, it isn’t free.  FreeScore requires consumers to sign up for a credit monitoring service, at the bargain price of $29.95 a month.  Anyone that does not want to get this service – which, incidentally, no one needs – must take affirmative steps to cancel the agreement.

FreeScore, like FreeCreditReport.com, is an example of “negative option marketing.” These marketing schemes draw consumers in with “free” trials or products, but require consumers to enroll in paying subscriptions.  For decades, consumers have understood that a “3 month trial” of Sports Illustrated or HBO comes with an opt-out subscription to those products. Today, sophisticated scam artists lure consumers in with “free” credit reports or “free” shipping, which actually require enrollment in unwanted and costly programs.

It’s a pernicious and growing practice, one that has hit my own family several times.  Just google “MVQ Bizmax” or “MVQ Shopessplus” and you’ll see what we dealt with.  The MVQ Bizmax search result  begins with “Find out what MVQ*BIZMAX charge on your credit card means.”  MVQ Shopessplus has as its first “Frequently Asked Question” the question “What is ‘MVQ*Shopessplus’ doing on my credit or debit card statement?”

Here’s a little hint: if you have to explain why you are on a consumer’s credit card statement, you’re probably a scammer.

Delegate Sheila Hixson and I are sponsoring legislation that would require any negative option contract to fully disclose all terms, and provide that consumers specifically agree to the negative option feature, as shown by their signature.

If the General Assembly sees fit to pass the bill, the only consumers caught by Ben Stein and his fellow ripoff artists will be those that are willing to hand money over to keep scam artists in business.  Anyone?  Anyone?  Bueller?  Bueller?