Pricing strategies have already caused fees to skyrocket and spreads between deposit and loan rates to reach historical highs. Rather than showing concern for consumer and community needs, many of the banking corporations are diverting their resources into more volatile and risky financial products. Consumer financial decisions are also becoming overwhelmingly complex. More than ever, there is a critical need for consumers to be heard and to have a real voice and a significant role in the legislative and regulatory decision-making process on financial issues. Creating FCAs is one of those rare measures that can attract support from people of diverse political persuasions.
Progressives see FCAs as a way to provide consumers with the advocacy tools they lack.
Financial Consumer Associations would be state-chartered, nonprofit, nonpartisan organizations. FCAs would be supported by membership dues and would receive no tax money. The members would elect a board of directors which could hire researchers, organizers, accountants and lawyers. CUBs are organized advocacy groups that give consumers a voice in the regulatory proceedings which control monopoly utilities. The CUB's effectiveness in saving utility consumers from unwarranted rate increases and in educating the public about energy conservation has been impressive.