Andrew Cuomo protects financial consumers

By Felix Salmon
February 2, 2010
the New York attorney general:

" data-share-img="" data-share="twitter,facebook,linkedin,reddit,google" data-share-count="true">

It will be the job of the Consumer Financial Protection Agency — assuming it ever comes into existence — to crack down on banks sneaking inadequately-disclosed fees onto their customers. in the mean time, we have to make do with the Fed, and, um, the New York attorney general:

Citigroup Inc. agreed Monday to suspend plans to charge fees on certain kinds of checking accounts as part of a settlement reached with the New York Attorney General’s office.

The fees would have affected more than 1 million customers.

Attorney General Andrew Cuomo said Citigroup failed to provide adequate disclosures about the fees, and also didn’t offer a free checking program long enough before implementing the charges. Cuomo did say the bank had the right to start charging fees, but it needs to respect consumers’ rights and give proper notice.

New York’s banks are, of course, no strangers to the experience of cowering in the face of an onslaught from an attorney general with gubernatorial ambitions. But I do wonder what will happen if and when the CFPA is created, and how many turf wars there might be.

Update: Maybe Cuomo should take a look at Citi’s latest attempt to find a loophole in the new credit-card rules.

More From Felix Salmon
Post Felix
The Piketty pessimist
The most expensive lottery ticket in the world
The problems of HFT, Joe Stiglitz edition
Private equity math, Nuveen edition
Five explanations for Greece’s bond yield
Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/