Today, the CFPB issued a report on the growth of “earned wage” cash advances , by which employers partner with third party companies to offer employees loans based on earned wages. The report found that, in addition to fees, these loans typically have an APR of 109.5%. Along with the report, the CFPB issued a […]
Kate Berry has an interesting article with some nice alliteration in the American Banker, Debt collectors defend doctors in skewering CFPB medical debt plan (behind paywall but available at Lexis). The CFPB has proposed to block medical debt from appearing in credit reports. The proposal is based in part on the theory that medical debt, because […]
The Electronic Funds Transfer Act (EFTA) requires banks, credit unions, and similar financial institutions to reimburse their customers for unauthorized electronic transfers of money from the customers’ accounts. Several credit union customers saw money transferred out of their accounts as part of a scam called “SIM Swap,” which, it was claimed, took advantage of T-Mobile’s […]
The Consumer Financial Protection Bureau has proposed “new rules to make it easier for homeowners to get help when they are struggling to pay their mortgage. The proposal, if finalized, would require mortgage servicers to focus on helping borrowers, not foreclosing, when a homeowner asks for help. The proposed changes would also make it simpler […]
Oregon enacted the Toxic-Free Kids Act, which directs the Oregon Health Authority to establish and maintain a list of high-priority chemicals of concern for children’s health. Manufacturers of consumer products with those chemicals to provide certain notices are required to publish notices, and, after several years, are prohibited from selling those products in the state. […]
The essay, by Mark Rivett, who both attended a for-profit college and taught at one, is titled I was Trapped in For-Profit College Hell (behind paywall). It’s subtitle is “Predatory schools tricked students like me into assuming huge debt for worthless credit.” Here’s the beginning: “If we’ve been bamboozled long enough, we tend to reject […]
Adam blogged earlier about Townstone but I wanted to say a bit more about what the case tells us about the CFPB’s authority concerning TILA and ECOA. As Adam noted, the Seventh Circuit cited Loper Bright and stated in note 15 that it approached the case “as presenting a question of statutory interpretation subject to […]
The Federal Reserve Board’s Regulation B implements the Equal Credit Opportunity Act, and prohibits creditors from discouraging, on a prohibited basis, applicants or prospective applicants from making or pursuing an application for credit. In 2020, the CFPB, who now enforces the regulation, brought an enforcement action alleging a lender “discouraged black prospective applicants from applying […]
So reports WSJ’s Alexander Saeedy (behind paywall). Excerpt: [Chase executive Marianne] Lake is warning that new rules that would cap overdraft and late fees will make everyday banking significantly more expensive for all Americans. Lake said Chase is planning to pass on the costs of higher regulation and charge customers for a number of now-free services, including checking […]
In order to state a claim for deceptive practices, many state consumer protection laws require plaintiffs to prove that the challenged acts or practices are “likely to deceive reasonable consumers.” In an opinion issued today, the Seventh Circuit grappled with the question of what exactly that means. The opinion comes in a class action brought […]