# Consumer finance
Consumer Bureau Takes Action on False Claims Around FDIC Insurance
CFPB clarifies deceptive and misleading use of FDIC logo, protection. The Consumer Financial Protection Bureau (CFPB) this week took action to clarify regulations around the use (and misuse) of the logo and auspices of the Federal Deposit Insurance Corporation (FDIC). The FDIC is the federal agency that ensures bank deposits up to $250,000.
Consumer Bureau Orders Scam Debt Relief Company to Cease Operations, Refund Millions to Borrowers
Enforcement action also bans co-founders from debt-relief payment processing industry. In an enforcement action this week, the Consumer Financial Protection Bureau (CFPB) ordered debt-relief payment processing company Account Management Systems (AMS) and the company's co-founders to cease operations and pay a total of $11 million in fines and customer refunds.
Consumer Bureau Expands Reach of Equal Credit Law
CFPB issues advisory opinion extending protections to borrowers. The Consumer Financial Protection Bureau (CFPB) issued an advisory opinion extending protections found in the Equal Credit Opportunity Act (ECOA) beyond the issuing of a loan. That is, the protections provided by the ECOA extend even after the loan is awarded and borrowers should be treated equally in the loan repayment process as well.
Bank of America Fined for Unlawful Garnishments
Consumer Bureau action imposes $10 million fine on one of nation's largest banks. The Consumer Financial Protection Bureau (CFPB) has fined Bank of America $10 million for the bank's unlawful processing of out-of-state garnishments.
Consumer Groups Urge Action on "Junk Fees"
Advocates detail common junk fees, call on Consumer Bureau to institute protections. In response to a call for comment on junk fees in the consumer finance industry, a number of consumer advocacy groups sent a letter to the Consumer Financial Protection Bureau (CFPB) detailing junk fees across a range of industries and services. The groups also called for specific actions to protect consumers from these fees.
Report: Payday Lenders use Deceptive Tactics to Trap Borrowers in Debt Cycle
Consumer Financial Protection Bureau exposes widespread industry practice. A report from the Consumer Financial Protection Bureau (CFPB) reveals that payday lenders engage in deceptive tactics in order to trap borrowers in a cycle of costly reborrowing.
Senators Call on Banks to End Overdraft Fees
Senate Banking leaders issue letters calling for consumer relief. A group of U.S. Senators led by Senate Banking Committee Chair Sherrod Brown of Ohio issued a series of letters calling on major U.S. banks to eliminate overdraft fees.
Consumer Advocates Applaud Enforcement Action Against Student Loan Servicer
National Consumer Law Center says fine is a win for student loan borrowers. Advocates at the National Consumer Law Center (NCLC) applauded enforcement action taken by the Consumer Financial Protection Bureau (CFPB) against student loan servicer Edfinancial.
Report: Credit Card Companies Charged $12 Billion in Late Fees in 2020
Consumer Financial Protection Bureau report suggests companies profiting from fees instead of service. The Consumer Financial Protection Bureau (CFPB) issued a report showing that card issuers charged $12 billion in late fees in 2020.
Pennsylvania Senator Argues for Including Medical Debt on Credit Reports
Toomey suggests medical debt matters in key lending decisions. Following an announcement by the three major credit bureaus - Equifax, Experian, and TransUnion - that most medical debt will be removed from consumer credit reports by this summer, Pennsylvania Senator Pat Toomey suggested the move was the result of undue political pressure from the Consumer Financial Protection Bureau (CFPB).
Consumer Groups Call for Regulation of Buy Now, Pay Later
Advocates warn of debt trap from easy access credit product. A coalition of consumer groups issued a joint letter to the Consumer Financial Protection Bureau (CFPB) urging action to regulate buy now, pay later products such as AfterPay, Klarna, Affirm, and others.
Consumers Should Beware of Credit Repair
FTC, consumer group offer warnings about credit repair services. A lawsuit filed by the Federal Trade Commission (FTC) should give consumers considering credit repair services pause, the regulatory body suggests.
Consumer Group Calls for End to Forced Arbitration
In response to House passage of the FAIR Act — (Forced Arbitration Injustice Repeal), consumer group Public Justice is calling on the Senate to follow suit and take immediate action to protect consumers from forced arbitration clauses.
70% of Medical Debt to be Removed from Credit Reports
Credit agencies announce major policy change impacting credit scores. The three nationwide credit reporting agencies — Equifax, Experian, and TransUnion — announcedtoday that effective July 1, 2022, most medical debt will be removed from consumer credit reports.
Capped: Payday Loan Rates in New Mexico Lowered to 36% Max
Gov. signs bill lowering max rate on small loans from 175% to 36%. New Mexico Gov. Michelle Lujan Grisham signed legislation this week that caps interest rates on small, short-term loans at 36%.
Is Buy Now, Pay Later a Recipe for Regret?
Survey suggests more than 1 in 5 consumers regret using buy now, pay later products. Buy Now, Pay Later — services like Klarna, AfterPay, Sezzle, and others — seem like a super convenient way to get what you need (or want) now and manage the purchase over a few smaller payments.
California Regulator Says FlexWage Earned Wage Product Not a Loan
FlexWage earns favorable ruling from California Department of Financial Institutions. The California Department of Financial Protection and Innovation (CDFI) issued an opinion that said that FlexWage's earned wage access product is not a loan under California law and therefore does not fall under the regulatory purview of CDFI.
Illinois Survey Shows Payday Loan Rate Caps Help Consumers
Alternative short-term loans are available at rates at or under 36%. A survey conducted by the Woodstock Institute with partners New America Chicago and the Chicago Urban League shows that payday loan rate caps are having a positive impact on consumers and communities.
Think Finance Facing $44.5 Million Judgment in "Rent-a-Tribe" Scheme
Online lender used tribal-owned companies to evade state interest rate caps. Virginia consumers who borrowed from online payday lender Think Finance could soon see cash refunds as a result of a proposed settlement in a class action lawsuit. Details from the case suggest Think Finance ran loans through three tribal lenders in an attempt to evade state interest rate caps and charge triple-digit interest rates on payday loans.
Utah Bank Named as Enabler of Predatory Puppy Loans
Consumer groups issue report calling out TAB Bank and EasyPay over predatory practices. Consumer advocates are calling out EasyPay Finance and Utah-based TAB Bank for their roles in predatory loans for financing puppies. These loans can carry rates up to 189%. Consumer and animal welfare advocates joined together to issue a report on the practices of EasyPay and their bank partner TAB Bank.