Appeals Court Calls CFPB Structure Unconstitutional; Throws Out $109M Penalty Over Alleged Mortgage Kickbacks

Adam Fagen

Since its creation as part of the sweeping financial reforms of 2010, the Consumer Financial Protection Bureau has, through settlements and enforcement actions, returned billions of dollars to Americans who were wronged by financial institutions. But consumer advocates say a new ruling from a federal appeals court threatens to undercut the Bureau’s independence and its ability to hold banks, credit card companies, mortgage lenders, and others accountable. [More]

New Prepaid Debit Card Rules Add Protections, Improve Transparency; Take Effect Oct. 2017

Patrick Fagan

Two years after the Consumer Financial Protection Bureau first proposed rules aimed at making prepaid cards safer and less costly for the 24 million unbanked consumers who make use of these sometimes costly and fee-laden financial products, the agency is releasing the final version of the rules that will kick in a year from now.  [More]


Operators Of Scammy Payday Lender Ordered To Pay $1.26 Billion

Four years after federal regulators sued the operators behind what might have been the scammiest payday loan Consumerist had ever seen, a federal judge has ordered Scott Tucker and his businesses to pay $1.26 billion to the Federal Trade Commission to resolve allegations of running online payday lending operations that exploited more than 5 million consumers.  [More]

Short-Term Loan Startup LendUp Ordered To Pay $3.6M Over Alleged Lending Violations

Short-Term Loan Startup LendUp Ordered To Pay $3.6M Over Alleged Lending Violations

When a company promises to lend you money and rebuild your credit — all through your phone — it can be hard to pass up the offer, especially when you’re in a pinch. But what happens when that lender doesn’t deliver? It gets fined millions of dollars by the federal government, or at least that’s the case for online lender LendUp. [More]

Former ITT Tech Students Talk About School’s High-Pressure Sales Tactics, Underwhelming Classes

Former ITT Tech Students Talk About School’s High-Pressure Sales Tactics, Underwhelming Classes

The recent collapse of ITT Technical Institute has left thousands of students stranded, unsure if they’ll be able to finish their educations, repay their loans, or even transfer their credits to other schools. Now, some of these ITT students are talking to Consumerist about the school’s high-pressure marketing, underwhelming courses, poor job-placement, and other shady practices. [More]

Online Payday Lender Can’t Hide Behind Western Sky’s Tribal Affiliation

Online Payday Lender Can’t Hide Behind Western Sky’s Tribal Affiliation

While operating a business on tribal lands may protect you from certain federal laws, an online payday lender can’t just prop up a storefront on tribal lands in order to offer high-interest loans that are illegal in many states. [More]


Online Lender Claiming Tribal Affiliation Must Refund, Cancel $11.6M In Payday Loans

For years, online lenders have claimed affiliations with tribal groups in order to skirt state laws related to short-term, high-interest loans. Today, the state of Minnesota came to a settlement over a years-long, so-called “rent-a-tribe” loan scheme with CashCall, ordering the lender to pay $11.6 million in relief to borrowers.  [More]

Xavier J. Peg

New Rules Would Require Debt Collectors Have Proof You Actually Owe Money

One of the most common complaints about debt collectors is that they harass people over debts that are either no longer owed, or weren’t owed in the first place. Federal regulators are now proposing rules that — among other protections — would cut down on these annoying, bogus collections actions by requiring that debt collectors have some sort of evidence that the person they are calling actually owes money. [More]

Morton Fox

Yahoo CEO Marissa Mayer Could Be In Line For Huge Payday After Verizon Deal

As you may have heard, Verizon reached a deal over the weekend to purchase Yahoo for $4.8 billion. What this means for the ‘90s internet relic, or those who serve at its helm is still unclear, but at least one of those people — CEO Marissa Mayer — stands to make a pretty penny if she indeed leaves the company when the deal is all said and done.  [More]

C x 2

Payday Lending Trade Group Promises To Clean Up Misleading Online Ads

Google dealt a big blow to the payday lending industry, when it recently decided to ban the short-term/high-cost lenders’ ads from search results. At the same time, federal regulators are pushing for stricter regulations on these controversial financial products. Now a payday lending trade group is hoping to do some damage control by creating a program to identify companies making misleading claims in online ads. [More]

Sapurah Lashari

Banks Trying To Attract Customers With Products To Reduce, Repay Student Loans

With student loan debt in the U.S. now well beyond $1 trillion, everyone seems eager to get into the debt-reduction business. Some cities will pay down your debt if you move there, while a growing number of employers are making loan payment contributions part of the benefits package. Now some financial institutions are dangling the debt-reduction carrot in front of potential customers — but should you bite? [More]


Payment Processor Ignored Red Flags, Allowed Clients To Withdraw Funds Illegally

If you’re in the business of processing payments, you have a certain obligation to look into any sort of signs that your clients may be abusing the system or illegally taking funds from customers’ bank accounts. Failing to do so can land you in some pretty hot water with federal regulators. [More]

DNC Chair Walks Back Her Opposition To Payday Lending Reform


Only three months ago, Florida Congresswoman and chair of the Democratic National Committee Debbie Wasserman-Schultz was actively lobbying her fellow lawmakers in opposition to pending reforms for the payday loan industry, finding nothing wrong with lenders who charge interest rates in the range of 300% to people in dire need of cash. Now that the actual rules have been announced, the legislator has had a sudden change of heart. [More]


Consumers, Payday Lending Employees Face Off On Proposed Short-Term Lending Rules

Consumer advocates, regulators, and representatives of the small-dollar lending industry descended upon Kansas City on Thursday to discuss the Consumer Financial Protection Bureau’s long-awaited proposed rules intended to rein in predatory lending.  [More]

New Rules Aim To Rein In Predatory Payday Lending, But Will They Work?

Adam Fagen

After nearly four years of studying the issue of high-cost, short-term financial products like payday loans, and auto-title loans, the Consumer Financial Protection Bureau has finally released its proposed rules intended to prevent borrowers from falling into the costly revolving debt trap that can leave people worse off than if they hadn’t borrowed money in the first place.  [More]

Google Invests In Payday Lender While Banning Ads For Payday Loans

Google Invests In Payday Lender While Banning Ads For Payday Loans

Last week, Google announced it would no longer include ads for payday lenders — financial services, outlawed in many states, that offer short-term, small-dollar loans, often with triple-digit interest rates — to protect “users from deceptive or harmful financial products.” All the while, Google’s parent company is investing in a startup that offers loans with annual percentage rates as high as 600%. [More]

Stephan De Witte

1-in-5 Auto Title Loans Lead To Vehicle Seizure

When seeking an infusion of cash to make ends meet, consumers may turn to payday loans, cash advance loans, or auto title loans. While each of these short-term, high-interest loans pose a financial risk to borrowers, only one has the ability to take away what is often a person’s largest asset: their vehicle. And, according to a new report, one-in-five consumers who take out a single-payment auto title loan have their car seized by lenders. [More]

Burned By Too Many Scams, Microsoft Bans Tech Support Ads In Bing Search Results

Burned By Too Many Scams, Microsoft Bans Tech Support Ads In Bing Search Results

Imagine if an entire section of the phone book (remember those?) was dominated by fake companies and scam artists. You’d hope the phone book people would wise up and get rid of that section. That appears to be Microsoft’s way of thinking as it bans tech support ads from its Bing search results. [More]