frankieleon

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

DCvision2006

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]

Adam Fagen

210 Law Professors Agree: Banks Should Not Be Able To Sidestep Legal System When They Break The Law

Earlier this month, the Consumer Financial Protection Bureau proposed rules that would make it more difficult for banks, credit card companies, and other financial services to stripping customers of their constitutional right to file lawsuits against these companies. The 90-day public comment period has finally opened on this rule, and the first one comes from a chorus of 210 law professors who all agree that consumers deserve the right to their day in court. [More]

Ronald M. Eikelenbloom

The 3 Myths Banks Are Using To Defend Their “Get Out Of Jail Free” Cards

Earlier this month, the Consumer Financial Protection Bureau proposed rules intended to restore some of those constitutionally granted rights that the Supreme Court has stripped away in recent decades. Faced with the possibility of having to be held responsible for their bad actions, some industry groups are coming out in force against the rules, presenting the same laughably thin argument that consumers ultimately benefit by not being able to sue the companies they do business with. [More]

photo: RushCard

RushCard To Pay $19M To Customers After Weeks-Long Glitch Last year

Last October, thousands of unbanked consumers who rely on prepaid RushCards were unable to access their funds because of a technical glitch. After toying with the idea of creating a compensation fund for those customers, RushCard announced Thursday that it will pay at least $19 million to card users affected by the weeks-long outage.  [More]

Payday Loan, Check Cashing Operation Trained Employees To “Never Tell Customer The Fee”

Payday Loan, Check Cashing Operation Trained Employees To “Never Tell Customer The Fee”

All American Check Cashing collects approximately $1 million in check-cashing fees each year. But according to federal regulators, the company, which also provides payday loans, obtains those fees through deceptive means, including refusing to tell customers what they will be charged and lying to prevent consumers from backing out of transactions.  [More]

TLFagan

Proposed Rules Would Take Away Banks’ “Get Out Of Jail Free” Card

Many bank accounts, and almost all credit cards, wireless services, private student loans, and payday loans contain clauses in their contracts that strip consumers of their right to sue these companies, and their right to join others in a class action, effectively allowing businesses to sidestep the legal system. While lawmakers in Congress debate the issue, and the U.S. Supreme Court has repeatedly given its approval to these practices, the Consumer Financial Protection Bureau is making good on its pledge to restore consumers’ constitutional right to having their day in court. [More]

FCC, CFPB Announce Nutrition-Like Labels For Broadband

FCC, CFPB Announce Nutrition-Like Labels For Broadband

When the FCC narrowly approved the Open Internet Order a year ago, most of the discussion involved “net neutrality” — the rules against Internet service providers being able to block, slow down, or prioritize access to specific sites and content. However, the Order also contained new transparency rules requiring broadband providers to, well, be more transparent with consumers, which is why today the FCC announced a new labeling system to help keep consumers informed. [More]

(bclinesmith)

Banks Are The Key To Stopping Scammers That Target One In Five Older Americans

If we’ve said it once, we’ve said it a million time: those who attempt – and often succeed – at scamming senior citizens of their savings are the worst of the worst when it comes to already unsavory, immoral fraudsters. Despite regulators’ attempts to take these operations out of commission, one in five older Americans report being the victims of financial exploitations either by ne’er-do-wells or family members. [More]

Citibank Caught Screwing Up Credit Card Debt Collections, Must Refund $5M

Citibank Caught Screwing Up Credit Card Debt Collections, Must Refund $5M

If you had a hunch that Citibank’s credit card division wasn’t terribly good at its job, you were right. Citi sold credit card debt to buyers with inflated interest rates, failed to tell those debt buyers when it accepted payments on these cards after the debt had been sold. [More]

(George)

Colleges Warned About Making Secret Deals With Credit Card Companies

In spite of rules intended to crack down on the once-rampant mis-marketing of credit cards to college students, some schools have not been fully transparent about lucrative agreements they’ve made with card companies, and could face federal penalties. [More]

10+ Things Consumers Should Know About The New Federal Spending Bill

10+ Things Consumers Should Know About The New Federal Spending Bill

This morning, after months of slapping on, then removing, then replacing pork barrel riders on the federal Consolidated Appropriations Act of 2016, we finally know exactly which add-ons made it into the omnibus spending bill and which ones didn’t. [More]

Groups Call On AmEx, Chase, Citi, Toyota, Others To Stop Forcing Customers To Sign Away Their Legal Rights

Groups Call On AmEx, Chase, Citi, Toyota, Others To Stop Forcing Customers To Sign Away Their Legal Rights

Once upon a time, if a company wronged a customer — not just by screwing up an order or having poor customer service, but by actually breaking the law — that customer could file a lawsuit and try to hold the company accountable. And if the company wronged lots of customers in the same way, they could join together in a class action. Now, thanks to the U.S. Supreme Court, companies can get away with breaking the law by simply including a few handy lines of text in their customer agreements and contracts. But just because the company can use this “get out of jail free” card, doesn’t mean it should. [More]

Consumer Advocates Ask Regulators To Investigate T-Mobile Over Advertising, Debt Collection Practices

Consumer Advocates Ask Regulators To Investigate T-Mobile Over Advertising, Debt Collection Practices

Those two-year mobile phone contracts we all signed for so long became a relic of the past pretty quickly over the last two years, with national providers all abandoning ship. T-Mobile moved to “contract freedom” almost two years ago now, and has since then continued to make a big deal over the fact that their users are neither locked into time-locked agreements nor face old-school high data overage fees.

[More]

Banks Urge Congress To Continue Renewing Their “Get Out Of Jail Free” Cards

Banks Urge Congress To Continue Renewing Their “Get Out Of Jail Free” Cards

Nestled deep in the text of the lengthy contracts for most credit cards and bank accounts are little clauses that not only prohibit harmed customers from suing their bank or card issuer, but also prevents them from banding together with similarly injured consumers to argue their dispute as a group. In October, the Consumer Financial Protection Bureau announced it would consider limits on these clauses, but now the banking industry is trying to use its leverage with D.C. lawmakers to shut down that process. [More]

JPMorgan To Pay $100M To Settle Unlawful Debt-Collection Allegations In California

JPMorgan To Pay $100M To Settle Unlawful Debt-Collection Allegations In California

Four months after JPMorgan Chase agreed to pay at least $136 million to close the books on state and federal investigations into its credit card collections practices, the company reached a $100 million settlement putting an end to a similar investigation in California.  [More]

RushCard To Create Reimbursement Fund For Customers Unable To Access Money

RushCard To Create Reimbursement Fund For Customers Unable To Access Money

The thousands of unbanked consumers who rely on prepaid RushCards but have been unable to access their funds because of a technical glitch, may receive compensation for the issue.  [More]

photo: RushCard

After RushCard Fiasco, Consumer Advocates Urge More Oversight Of Prepaid Cards

For the better part of two weeks, thousands of unbanked consumers who rely on prepaid RushCards have been unable to access their funds because of a technical glitch. While the company run by Russell Simmons continues to fix the issue, consumer advocates are pointing at the incident as evidence that federal regulators need to do more to protect prepaid cardholders.  [More]