by Jeff Sovern Earlier, Allison posted a link to an op-ed opposing rescission of the CFPB's prepaid card rule. For readers who would like to hear what opponents of the prepaid card rule argue, here is an op-ed in The Hill by Andrew Langer of the Institute for Liberty (I wonder who provides their funding). […]
Here. Excerpt: The CHOICE Act also rejects the painful lessons about toxic financial products from the financial crisis and Great Recession in which 10 million families lost their homes and Americans collectively lost $19 trillion in wealth. Instead of continuing post-crisis reforms that have ensured the availability of safe and affordable financial products, it would […]
Here, in SCOTUSblog. Sounds like the justices are leaning towards finding for the debt buyers, but oral arguments can be a treacherous guide to the final result.
The Washington Post reports: Eager not to be the next Wells Fargo, some other big banks say they are examining their own practices against the board report and actively looking for ways to avoid any sales issues before becoming engulfed in a similar kind of scandal. … Wells had by far the most aggressive sales […]
In 2016, the CFPB issued a rule addressing prepaid cards, which are cards that work like debit cards but are not associated with a bank account. Prepaid cards include but are not limited to what we think of as gift cards; some employers pay their workers with prepaid cards. As the Senate is set to […]
This week, the Consumer Financial Protection Bureau filed a lawsuit in a federal district court against the debt collection law firm Weltman, Weinberg & Reis for falsely representing in millions of collection letters sent to consumers that attorneys were involved in collecting the debt. The law firm made statements on collection calls and sent collection […]
by Jeff Sovern I finally finished listening to the House Financial Service's Committee's April 5 hearing: a more than five-hour long interrogation of CFPB Director Richard Cordray. I am torn between thinking every American should listen to some of it–to see how awful some members of Congress are–and thinking no one should have to listen to […]
Here. Quoting now: “Gary Cohn gave Richard Cordray, the head of the Consumer Financial Protection Bureau, an ultimatum over dinner a few weeks ago: Go the easy way, or go the hard way. “Cohn, President Donald Trump’s top economic adviser, had heard the rumors that Cordray wanted to run for governor in Ohio. He left […]
Here. It's the "On Money" column by Gary Rivlin. Excerpt: Three days after Donald Trump was sworn in as president, the United States government fined a couple of Citigroup subsidiaries $28.8 million for giving the runaround to tens of thousands of borrowers who were trying to avoid foreclosure on their homes. One week later, it […]
Law360's Evan Weinberger reports here (behind paywall). The case will decide whether debt buyers that don't have debt collection as their principal purpose, because, as in Santander's case, the debt buying unit is part of a multipurpose financial institution, are covered by the FDCPA. If the debt buyer wins, will we see debt buyers join with […]