Washington Post columnist MIchelle Singletary warns: "If you use a prepaid card — and millions of you do — take heed, because there’s an effort in Congress to block new rules that would give you the kind of federal protections afforded to debit and credit card users. Her full column is here.
by Jeff Sovern Here. As previously reported on the blog, it would eliminate the CFPB's power to stop unfair, deceptive, or abusive practices (section 736)–that is, the power the Bureau used to stop Wells Fargo from opening sham accounts–and to regulate arbitration (section 738)–that is, the section that would give the CFPB the power to […]
Opponents of payday loan reform argue that the payday loan industry benefits its customers by providing access to credit for customers who could not otherwise obtain it, and that it is paternalistic to deny consumers the opportunity to afford themselves of these benefits. Payday loan customers, however, have a different view: Bring on the “paternalism.” […]
NerdWallet reports here about the leaving of voicemails without ever calling–to evade limits on phone calls–and avatars, among other things.
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 […]