RICHMOND, Va. - April is National Financial Literacy Month, and one group would like Virginians to know that if they have ever tried to stop automatic debits from their bank account, only to be given the run-around by the bank, they do have recourse.

Dana Wiggins is the director of outreach and financial advocacy for the Virginia Poverty Law Center (VPLC). She said her office has been flooded with calls from people who have tried to stop their bank account from being automatically debited, only to be told by their bank that there is nothing the bank can do.

"It's really important to know that you can stop automatic debits from your bank account," she said, "especially if you haven't authorized them or if you've withdrawn authorization. It's important to know that you do have rights."

According to federal law, people have the right to stop any electronic authorizations with their bank or credit union, Wiggins said. But people are often told by their banks they must get the company to stop debiting the account, which can prove difficult when it comes to companies like payday lenders or other on-line lenders. She recommended that those needing help contact www.virginiafairloans.org or call the VPLC hotline, 866-830-4501.

Wiggins said an important first step to stop automatic withdrawals from your account is to tell the lender or the party that is automatically debiting that you wish to withdraw authorization, meaning you no longer give them permission to debit your bank account. You can do it verbally or, she suggested, it is best is to put it in writing - in an email or on paper - and copy your bank on the letter.

"Then, you want to go to the bank and say, 'Here's a copy of the withdrawal notice that I have sent to these lenders; I want to be sure that they aren't trying to debit from my account after I've withdrawn the authorization, so I would like you to also stop allowing them to debit from my account,'" Wiggins said.

In some cases, Wiggins added, people did not even authorize their accounts to be debited, and they are not able to reach anyone to withdraw the authorization.

Closing your bank account is also an option, she said. She suggested that people who have trouble with their bank file complaints with the Consumer Financial Protection Bureau at www.consumerfinance.gov.




get more stories like this via email

Concert and sports fans in Ohio are expressing growing frustration over rising ticket prices and hidden fees.

In response, Congress is considering the TICKET Act, a bipartisan bill which aims to increase transparency by requiring ticket sellers to display all fees upfront.

Sally Greenberg, executive director of the National Consumers League, highlighted why she feels the issue is so important for consumers.

"People in Ohio understand the frustration and the anger that you feel when you go buy a ticket, it looks like a reasonable cost and, all of a sudden, the fees add 30%, 40%, 50% of the cost," Greenberg explained.

If the TICKET Act passes, ticket vendors will be required to show the total price, including fees, at the beginning of the purchase process. While supporters such as Greenberg see it as a win for consumers, some in the ticketing industry argued the change could disrupt business models.

The rise of online ticket fraud has become another challenge for buyers.

Nick Drewe, CEO of the consumer website WeThrift.com, emphasized the importance of vigilance when purchasing tickets online.

"Our study revealing the states with the highest online shopping fraud reports is a wake-up call for consumers nationwide," Drewe noted. "Navigating the digital marketplace is kind of like exploring a new city; it's exciting but also requiring caution."

As Ohioans await the outcome of the TICKET Act, many hope increased transparency will lead to fairer ticket pricing. Drewe urged consumers to remain cautious while shopping online to avoid becoming victims of fraud.

Groups are warning technology companies could undermine protections on a number of issues with their push for certain provisions in international trade agreements, known as digital trade rules.

Julie Bouanna, executive director of the Washington Fair Trade Coalition, said the policies could limit regulations on Big Tech passed in Washington state.

"The People's Privacy Act, legislation on artificial intelligence oversight and the right to repair," Bouanna outlined. "This is legislation that we see popping up in Washington but also, really, across the country as we're waking up to Big Tech's outsized influence on our everyday lives."

The People's Privacy Act was proposed legislation in Olympia, which would have allowed residents to correct and delete personal information collected on data servers. The tech industry argued trade agreements include exemption provisions for certain policies. It also said overregulation in areas like artificial intelligence could stifle the technology.

Bouanna countered there are legitimate concerns about the effects of including the policies tech companies are pushing for in trade agreements.

"These are trade rules that would essentially allow corporations to sidestep local privacy laws and shield their technology from government oversight," Bouanna explained. "Making it harder to hold them accountable."

Washington state lawmakers have also introduced legislation to increase transparency for algorithm-based decision-making to prevent discrimination from AI and allow for more affordable fixes to products through "right to repair" legislation, which has been adopted in other states like Oregon.

Bouanna noted all the policies could be affected by digital trade rules.


get more stories like this via email

During National Hispanic American Heritage Month, financial experts are speaking out to help Latino families build wealth.

Federal data show that more than a quarter of Latino consumers in the U.S. have no recent credit history, making them "credit invisible" and unlikely to qualify for a loan.

Jorge Lopez Colunga, business development officer in commercial lending for Self-Help Federal Credit Union in San Francisco, said some Latinos are unaccustomed to using credit.

"In Mexico, Latin America, it's either you pay cash or you just don't buy it because you cannot afford it," Lopez Colunga explained. "Here you have to learn how to use credit and leverage it, because it's crucial in order for them to afford something bigger in the future."

Lopez Colunga pointed out many Latinos are self-employed and may operate on a cash basis. He advised people to keep meticulous records and hire an accountant because accurate business income and tax records will help them qualify for business, home and car loans down the line.

Maria Ramos Cuaya, racial wealth gap coordinator at Self-Help Federal Credit Union, encouraged people to seek financial counseling.

"We always try to connect our members with the proper resources for them to understand how to create a spending plan, how to manage their finances, how to access credit without having to get into so much debt," Ramos Cuaya outlined.

Ramos Cuaya noted many banks and credit unions offer "credit builder" loans to help people establish or build new credit using their own money.