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Treasury Dept. Says You Shouldn’t Have The Right To Sue Your Bank Or Credit Card Company

Treasury Dept. Says You Shouldn’t Have The Right To Sue Your Bank Or Credit Card Company

Forget the Sixth Amendment, which guarantees the “right to a speedy and public trial” in criminal matters. And who needs that ancient Seventh Amendment and its fancy “right of trial by jury.” The U.S. Treasury Department has concluded that American consumers can not be trusted to thoughtfully exercise these Constitutional rights — at least not when doing so might be an annoyance to the financial services sector. [More]

Adam Fagen

Bank-Backed Congressman Praises Betsy DeVos For Cutting Ties With Consumer Protection Agency

Congressman Jeb Hensarling of Texas, whose campaign has received more than $8 million from the financial sector since 2010, has long endeavored to undercut the Consumer Financial Protection Bureau, an agency that regulates many of the businesses that keep Hensarling’s election campaigns flush with contributions. So it’s of little surprise that the lawmaker is thrilled at Education Secretary Betsy DeVos’ recent decision to stop working with the CFPB on student loans — even though the Bureau has returned hundreds of millions of dollars to screwed-over student borrowers. [More]

Sketchy Debt Relief Company Accused Of Impersonating Federal Agency

Sketchy Debt Relief Company Accused Of Impersonating Federal Agency

In a sweet case of karma, a debt relief operation that claimed to wipe away consumers’ debt through an affiliation with the Consumer Financial Protection Bureau has been sued by none other than that exact same agency.  [More]

DCvision2006

Financial Protection Bureau Finalizes New Rules To Curb Predatory Lending, But Will Congress Let It Happen?

In an effort to rein in short-term, high-cost loans that often take advantage of Americans who need the most help with their finances, the Consumer Financial Protection Bureau has finalized its new rule intended to make these heavily criticized financing operations to be more responsible about the loans they offer. But will bank-backed lawmakers in Congress use their authority to once again try to shut down a pro-consumer regulation? [More]

Joe Gratz

Chamber Of Commerce Files Lawsuit To Stop American Consumers From Being Able To File Lawsuits

The U.S. Chamber of Commerce may sound like a government agency or a quaint organization of helpful business leaders, but it is, in fact, the single largest lobbying organization in the country, spending nearly $104 million last year alone on lobbying, about $40 million more than any other group. The Chamber also thinks the U.S. Constitution is mistaken, that the Sixth and Seventh Amendments don’t apply to consumers; that the mere fact you are a customer should strip you of your constitutional right to sue banks like Wells Fargo or credit bureaus like Equifax when they open millions of bogus accounts in customers’ names or fail to protect sensitive information for more than 100 million people.

And how does the Chamber of Commerce plan to stop the American people from being able to bring lawsuits? By doing the one thing it doesn’t want you to be able to do. [More]

frankieleon

Study: More Than 40% Of Americans Struggling To Make Ends Meet

There are no shortage of surveys and studies that have found consumers aren’t doing so great with their finances: from 45% of Americans carrying at least $25,000 in debt to one-in-four families failing to seek medical attention because of financial worries. Now, another survey — this time from the Consumer Financial Protection Bureau — found that more than 40% of adults struggle to make ends meet.  [More]

MeneerDijk

States Ask Betsy DeVos To Not Drop Protections For Student Loan Borrowers

Earlier this month, Secretary of Education Betsy DeVos declared that the Department of Education would no longer work with the federal Consumer Financial Protection Bureau to root out bad players in the student loan servicing arena. While the CFPB fired back, accusing DeVos of misunderstanding just what the Bureau does, a coalition of state attorneys general are now joining the choir, claiming the decision to end the agencies’ agreements undermine protections for student borrowers.  [More]

HerArtSheLoves

Student Lender, Debt Collector To Refund More Than $3.5M To Borrowers

Two months after private student loan lender National Collegiate Student Loan Trust came under scrutiny amid reports that the company, along with its debt collector TransWorld, filed illegal student loan debt collection lawsuits against defaulted borrowers without citing proper or correct paperwork, federal regulators have ordered the companies to pay $21.6 million in refunds and penalties, and revise their collection practices.  [More]

Adam Fagen

CFPB Asks Education Secretary DeVos To Not Give Up On Protections For Student Loan Borrowers

A week after Secretary of Education Betsy DeVos essentially broke up with the Consumer Financial Protection Bureau, ending the agencies’ agreements to work together to root out bad players in the student loans servicing arena, the CFPB is firing back, accusing DeVos of misunderstanding just what the Bureau does. [More]

Betsy DeVos Refuses To Work With Consumer Protection Agency On Student Loans

Betsy DeVos Refuses To Work With Consumer Protection Agency On Student Loans

The Department of Education will no longer work with the federal Consumer Financial Protection Bureau to root out bad players in the student loan servicing arena. That’s according to Education Secretary Betsy DeVos, who recently notified the CFPB that her department is ending years of formal cooperation combating student loan fraud.  [More]

zeorb

Taking Out A Reverse Mortgage To Delay Social Security Might Not Be The Best Idea

More than two years after the Consumer Financial Protection Bureau found that reverse mortgage ads create a false impression of the financial product, the agency is once again warning older consumers about the dangers of using reverse mortgages. This time, the CFPB is warning against using reverse mortgages to provide income that would allow the individual to delay Social Security benefits, which can increase their future monthly benefits, but decrease their overall, long-term financial outlook.  [More]

Taber Andrew Bain

Feds Investigating Wells Fargo Sudden Account Closures

Last year, federal regulators fined Wells Fargo $185 million for its fake account fiasco in which employees were found to have opened more than two million accounts without customers’ authorization. Now, the bank says it’s under investigation for wrongly closing some accounts.  [More]

(Michael Flores)

JPMorgan Chase To Pay $4.6M For Allegedly Failing To Ensure It Furnished Accurate Customer Information

When opening a checking account, a bank will review a customer’s past banking history supplied from their previous financial institution. JPMorgan Chase allegedly failed to ensure this information was accurate and often left customers in the dark about why their applications were denied or who to contact to dispute these findings. For this, the company will pay a $4.6 million fine.  [More]

(J.G. Park)

House Votes To Strip Bank & Credit Card Customers Of Constitutional Right To A Day In Court

Because the Sixth and Seventh Amendments of the U.S. Constitution are apparently less important than making sure that banks, credit card companies, student loan companies, and other financial services be allowed to behave badly with impunity, the House of Representatives has voted to overturn a new federal regulation that would have helped American consumers hold these companies accountable through the legal system. [More]

(SarahMcGowen)

Don’t Strip Consumers Of Their Right To A Day In Court, Say Advocates, Senators

Last week, bank-backed lawmakers revealed their plans to pass fast-track legislation that would undo the Consumer Financial Protection Bureau’s recently finalized rules that prevent banks and other financial institutions from stripping customers of their constitutional right to a day in court. Now, consumer advocates are urging the rejection of the legislation, expected to be voted on this week.  [More]

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Lawmakers Who Want To Hand ‘Get Out Of Jail Free’ Card To Banks Made Millions From Financial Sector Last Year

As expected, Republican lawmakers in both the House and Senate have introduced legislation that would overturn new rules intended to make sure that bank and credit card customers aren’t stripped of their right to file lawsuits in a court of law. Not surprisingly, many of the politicians pushing this pro-bank bill recently received significant financial support from the financial sector. [More]

inajeep

GOP Moving Forward With Plan To Block New Legal Protections For Bank, Credit Card Customers

The Consumer Financial Protection Bureau recently finalized new rules that prevent banks and other financial institutions from stripping customers of their constitutional right to a day in court. As expected, bank-backed lawmakers in both the House and Senate are now planning to pass fast-track legislation that would undo these protections and make sure banks retain their “get out of jail free” card. [More]