DIRS.INFO The most relevant business & tech news

☆ A group of student-loan borrowers are getting $30 million in debt relief after a tech boot camp offered them 'illegal' payment plans, a federal watchdog says
▼ + stars: | 2023-11-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

A group of student-loan borrowers who attended boot camp Prehired are getting $30 million in debt relief. The CFPB sued Prehired over the summer, accusing it of offering "illegal" income-share agreements. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementMore student-debt relief is on the way for a group of borrowers who attended a tech boot camp. "Today's action with our state partners ensures that borrowers harmed by Prehired can receive redress and have their illegal loans canceled."

Persons: Prehired, —, Rohit Chopra Organizations: Service, Consumer Financial, Delaware's Justice Department

☆ Toyota financing arm fined $60 million by consumer watchdog for car loan scam
▼ + stars: | 2023-11-20 | by ( Chelsey Cox | ) www.cnbc.com time to read: +1 min

WASHINGTON — The U.S. financing arm for Toyota was fined $60 million Monday by a federal consumer regulator for preventing car buyers from canceling add-ons to their loans. "Toyota's lending arm illegally withheld refunds, made borrowers run through obstacle courses to cancel unwanted services, and tarnished their credit reports," said Consumer Financial Protection Bureau Director Rohit Chopra. Toyota Motor Credit Corp., or TMCC, violated the Consumer Financial Protection Act by preventing customers from canceling loan add-ons that cost on average between $700 and $2,500 per loan, according to a consent order. TMCC is ordered to pay $48 million in consumer redress and a $12 million civil money penalty to the CFPB's victims relief fund. "Given the growing burdens of auto loan payments on Americans, we will continue to pursue large auto lenders that cheat their customers," Chopra said.

Persons: WASHINGTON, Rohit Chopra, Chopra, Vincent Bray Organizations: Toyota, Financial, Toyota Motor Credit Corp, Consumer Financial, Bureau, Toyota Financial Services, CNBC Locations: The U.S

☆ Some student-loan borrowers with private debt are being forced to make payments they don't owe, a federal watchdog says
▼ + stars: | 2023-10-23 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The CFPB released a report analyzing complaints from private and federal student-loan borrowers. AdvertisementAdvertisementSome lenders might be discouraging private student-loan borrowers from receiving relief to which they're entitled. In that time period, 9,284 student-loan borrowers submitted complaints — 6,934 of which were related to federal loans and 2,350 of which were related to private loans. The current private student-loan portfolio in the US has about $132 billion in outstanding debt, which is 8% of the total outstanding student debt. As Insider previously reported, private student-loan borrowers are more vulnerable than federal borrowers because they do not have the same avenues for federal debt relief and repayment, and it's harder to regulate private lenders that can set their own terms.

Persons: —, Robert Cameron, Federal Trade Commission's, it's, Cameron Organizations: Service, Consumer, Federal Trade

☆ $3.4 million in student-debt cancellation is on the way for borrowers who went to a for-profit school that 'falsely' touted job placement rates, the FTC says
▼ + stars: | 2023-10-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Sollers will cancel $3.4 million in student debt for those who entered income-share agreements. The FTC said the school lied about job placement rates and employer partnerships. "Today's order cancels all income-share agreements issued by the school." This is not the first time a federal agency has raised red flags over income-share agreements. The Consumer Financial Protection Bureau recently sued career bootcamp Prehired, accusing it of misrepresenting the nature of its income-share agreements with students.

Persons: Sollers, —, Joe Biden's, New Jersey —, Samuel Levine, Weill, Weill Cornell Medicine —, Aerotek, bootcamp Prehired, Prehired Organizations: FTC, Service, Federal Trade Commission, Sollers, Consumer, Sollers College, The Federal Trade Commission, Weill Cornell Medicine, Consumer Financial Protection Locations: New Jersey, FTC's, Sollers

☆ CFPB Director on 'junk fee' ban: We don't want firms innovating on how they can cheat people
▼ + stars: | 2023-10-13 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCFPB Director on 'junk fee' ban: We don't want firms innovating on how they can cheat peopleConsumer Financial Protection Bureau Director Rohit Chopra joins 'Squawk Box' to discuss CFPB's efforts working with President Biden to ban so-called 'junk fees', whether the plan is to lower fees for Americans or to increase transparency, SCOTUS case, and more.

Persons: Rohit Chopra, Biden, SCOTUS Organizations: Financial

☆ TransUnion settles with the FTC, CFPB for $23 million for impeding tenants' ability to obtain housing
▼ + stars: | 2023-10-12 | by ( Chelsey Cox | ) www.cnbc.com time to read: +4 min

"Americans across the country were put at risk of wrongful housing denials because TransUnion failed to follow the law," Consumer Financial Protection Bureau Director Rohit Chopra said. "We are ordering TransUnion to cease its yearslong illegal activity, clean up its broken business practices, redress its victims, and pay penalties." Under the proposed order, which is pending approval by a federal court, $11 million of a $15 million settlement will compensate consumers and $4 million will go to the CFPB's civil penalty fund. The firm also said it has worked with the CFPB and FTC over the past year "to enhance our rental-screening reporting practices, including making certain changes to how eviction records are reported." The CFPB and FTC further argued that tenants who can't access vendors that keep criminal and eviction records face challenges in correcting inaccurate background data.

Persons: TransUnion, Rohit Chopra, CFPB, TURSS, Samuel Levine Organizations: San Francisco , California ., San Francisco , California . WASHINGTON —, Trans, Financial, Federal Trade Commission, Inc, CNBC, Consumers, Consumer Protection Locations: San Francisco , California, San Francisco , California . WASHINGTON, Colorado, FTC's

The battle against junk fees is part of President Joe Biden's administration's effort to ease strains on voter pocketbooks as an election year approaches. Taking on "junk fees" gives Biden and his allies fodder to show they are helping people tackle costs as many Americans are dissatisfied with his economic stewardship. The administration has previously proposed a rule to require airlines to disclose fees upfront. The agency estimated the fees cost consumers tens of billions of dollars annually on items such as hotel resort fees. "These junk fees function as an invisible tax that quietly inflates prices across the economy," FTC Chair Lina Khan told reporters on a conference call.

Persons: Joe Biden, Jonathan Ernst, Biden, Joe Biden's, Lina Khan, Diane Bartz, Jeff Mason, Douglas Gillison, Richard Chang Organizations: U.S, Fire Prevention, Eisenhower, White, REUTERS, Companies United, Democrat, Federal Trade Commission, FTC, Consumer Financial, Thomson Locations: Washington , U.S, Companies United States, America

☆ Businesses are returning $140 million in surprise overdraft fees to consumers, according to a CFPB report
▼ + stars: | 2023-10-11 | by ( Chelsey Cox | ) www.cnbc.com time to read: +1 min

WASHINGTON — The nation's federal consumer protection watchdog announced Wednesday that companies will refund $140 million to customers as a result of its work to uncover illegal so-called junk fees. "The [Consumer Financial Protection Bureau] continues to uncover junk fee scams that violate the law and undermine consumer trust," CFPB Director Rohit Chopra said in a statement. The bureau on Wednesday released a report of supervisory highlights in tandem with the Biden administration's newly announced policies targeting junk fees across industries. Financial institutions that hit customers with surprise overdraft and NSF fees account for $120 million of the $140 million that companies will reportedly refund to consumers following the March edition of the report, the CFPB found. Nearly two-thirds of banks with more than $10 billion in assets have also eliminated NSF fees, saving customers nearly $2 billion a year, according to a separate report released Wednesday.

Persons: WASHINGTON, Rohit Chopra, overdraft Organizations: Consumer Financial, Biden

☆ The Biden administration wants to completely ban the hidden fees that make your plane and concert tickets unexpectedly expensive
▼ + stars: | 2023-10-11 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

The FTC proposed a rule on Wednesday that would ban all hidden and misleading fees. Businesses who use hidden fees might have to give consumers refunds, per the rule. AdvertisementAdvertisementThe Biden administration has been trying to crack down on the hidden fees that pop up when you try to book a plane or a concert ticket or even just order food — and now wants to outright ban them. Those junk fees "plague" Americans across all sorts of transactions. The CFPB's Wednesday guidance clarified that provision to ensure every American knows they do not need to pay junk fees to get basic information from their bank.

Persons: —, Biden, Lina Khan, Khan, that's, Vicki Morwitz, Morwitz, Rohit Chopra, Lael Brainard Organizations: FTC, Service, Federal Trade Commission, Columbia Business School, Consumer Financial, —, Economic Locations: America, United States

☆ US consumer watchdog warns payment systems risk Chinese-style surveillance
▼ + stars: | 2023-10-06 | by ( ) www.reuters.com time to read: +2 min

Signage is seen at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, D.C., U.S., May 14, 2021. REUTERS/Andrew Kelly/File Photo Acquire Licensing RightsCompanies Consumer Financial Protection Bureau FollowOct 6 (Reuters) - The top U.S. agency for consumer financial protection is considering regulatory moves to help protect the public from the kind of excessive surveillance of their financial data enabled by payment structures in China, its director said on Friday. This will involve ordering some large U.S. tech firms to provide information on their use of personal data and private currencies, Rohit Chopra, director of the U.S. Consumer Financial Protection Bureau (CFPB), said in a speech. "It's critically important for American consumers to have stronger protections against excessive surveillance and misuse of our data," Chopra said in a speech at the Brookings Institution in Washington. The Consumer Financial Protection Bureau's "open banking" proposal is expected to give consumers the ability to switch service providers more easily and control how financial tech service providers collect consumer data.

Persons: Andrew Kelly, Rohit Chopra, Chopra, Chopra's, Douglas Gillison, Chizu Nomiyama, Bill Berkrot Organizations: Consumer Financial Protection Bureau, Washington , D.C, REUTERS, Consumer Financial, U.S, U.S . Consumer Financial Protection Bureau, Brookings Institution, Consumer, Thomson Locations: Washington ,, China, Washington

The CFPB's funding design draws money each year from the Federal Reserve instead of from budgets passed by lawmakers. Challengers to the CFPB - trade groups representing the high-interest payday loan industry - argued that the agency's funding structure violates a constitutional provision giving Congress the power of the purse. The Supreme Court's 6-3 conservative majority has rolled back the power of federal agencies including the Environmental Protection Agency in important rulings in recent years. The court's three liberal justices pressed the challengers on the repercussions of deeming the CFPB's funding structure unconstitutional. Circuit Court of Appeals, which last October ruled that the CFPB's funding structure violated the Appropriations Clause.

Persons: Clarence Thomas, Samuel Alito, Kevin Wurm, Joe Biden's, Elizabeth Prelogar, Biden, Elena Kagan, Barack Obama, Wells, John Kruzel, Will Dunham Organizations: U.S, Supreme, REUTERS, Companies Wells, Co, Consumer Financial Protection Bureau, Federal, Environmental Protection Agency, Conservative, Federal Reserve, Democratic, New, Circuit, Appeals, Republican, Thomson Locations: Washington , U.S, WASHINGTON, New Orleans

☆ SCOTUS to hear case on the constitutionality of CFPB's funding
▼ + stars: | 2023-10-03 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSCOTUS to hear case on the constitutionality of CFPB's fundingMark Calabria, senior advisor at The Cato Institute and former director of The Federal Housing Finance Agency, along with NBC and MSNBC's Danny Cevallos, join 'The Exchange' to discuss Supreme Court hearing a case on the constitutionality of the Consumer Financial Protection Bureau's funding supply, how this supreme court ruling could impact similarly funded agencies, and the likelihood of the court returning a narrow decision.

Persons: SCOTUS, Mark Calabria, Danny Cevallos Organizations: Cato Institute, Federal Housing Finance Agency, NBC, Consumer

☆ Supreme Court case may gut the CFPB: Consumer watchdog's ‘future is on the line,’ group says
▼ + stars: | 2023-10-03 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Visitors walk across the U.S. Supreme Court plaza on the first day of the court's new session on Oct. 2, 2023. Bill Clark | Cq-roll Call, Inc. | Getty ImagesWhy the CFPB's funding may be unconstitutionalThe Consumer Financial Protection Bureau headquarters in Washington. Lawmakers created the federal agency to protect consumers from predatory financial practices. The Supreme Court ruled against the agency in a 2020 case, Seila Law v. CFPB, finding part of its structure to be unconstitutional but ultimately keeping the agency intact. Instead, the CFPB's funding isn't authorized by Congress each year.

Persons: Bill Clark, Washington . Samuel Corum, Dodd, Frank, —, John Coleman, Orrick, Coleman, Rohit Chopra, Tom Williams Organizations: U.S, Supreme, Cq, Inc, Getty, Financial, Bloomberg, Lawmakers, U.S ., Appeals, Circuit, Congress, Federal Reserve, 5th Circuit, Congressional Research Service, Mortgage Bankers Association, National Association of Home Builders, National Association of Realtors Locations: Washington .

☆ Social Security, Medicare, and other key programs Americans rely on could become 'vulnerable' depending on an upcoming Supreme Court ruling, a former federal official says
▼ + stars: | 2023-10-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Supreme Court is hearing oral arguments in a case challenging the CFPB's funding structure. A former FDIC official said an adverse ruling could risk Social Security and Medicare. Any agency that doesn't rely on annual funding from Congress would be jeopardized, she said. AdvertisementAdvertisementStill, advocates and lawmakers have stressed the importance of preserving the CFPB's funding structure to protect consumers from the potential fallout. A bad decision in the Supreme Court could wreck the financial security of millions of families and turn our economy upside down."

Persons: —, Sheila Bair —, Federal Deposit Insurance Corporation —, Bair, Dodd, Frank Wall, Shahid Naeem, Massachusetts Sen, Elizabeth Warren, Warren Organizations: FDIC, Security, Service, Financial, Community Financial Services Association of America Ltd, Federal Reserve, Fifth Circuit, Federal Deposit Insurance Corporation, Social Security, Frank Wall Street Reform, Consumer Protection, American Economic Liberties Project, Congress Locations: Massachusetts

☆ Some student-loan borrowers are getting kicked out of classes and racking up debt after being placed in shady payment plans with minimal legal protection, a federal consumer watchdog says
▼ + stars: | 2023-09-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

It found the plans can have predatory terms that include big late fees and aggressive debt collection practices. AdvertisementAdvertisementThe report analyzed 450 institutions' payment plans — 60% of which outsourced management of the payment plans to third-party financial service providers, and it found that the interest-fee plans aren't as affordable as they sound. Additionally, the inconsistency among payment plans can leave students facing disparate consequences for missing a payment. CFPB example of late fees on tuition payment plans. The CFPB said it will continue to monitor schools' payment plans to ensure they are in accordance with consumer law.

Persons: Rohit Chopra, Joe Biden's Organizations: Service, Consumer Financial, Education Department Locations: Wall, Silicon

☆ Withheld transcripts, kicked off campus: College payment plans pose risks, consumer watchdog warns
▼ + stars: | 2023-09-15 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

However, a new report by the Consumer Financial Protection Bureau warns of a number of risks associated with these payment plans, including snowballing charges and aggressive collection practices. Nearly 4 million students use payment plansNearly all colleges offer some sort of tuition payment plan, the CFPB found. Under the plans, tuition and other education expenses are typically spread out into several payments over a semester or academic year. Most college payment plans are interest-free, but there can be enrollment fees and other charges involved, the CFPB found. "If the family misses a payment, some tuition payment plans may be converted into private student loans with unfavorable terms," he said.

Persons: Rohit Chopra, they're, Elaine Rubin, Rubin, Mark Kantrowitz, delinquencies Organizations: Istock, Consumer Financial, Finance, Money, Homeowners Locations: Edvisors

☆ Homeowners should be worried about a legal battle that could jeopardize 'the stability of the housing market,' the head of a federal consumer watchdog says
▼ + stars: | 2023-09-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Supreme Court will soon hear a case challenging the CFPB's funding structure. Housing groups also warned of chaos in the industry if CFPB's funding is upended. But the Supreme Court threat to the CFPB's funding structure "would raise significant concerns for the stability of the housing market and the financial system more broadly," Chopra said. "Reverting to a system without these regulations would create uncertainty for the mortgage industry and the economy," Chopra said. At this point, it's unclear how broadly the Supreme Court will rule, and if it will strike down the CFPB's funding structure entirely.

Persons: Rohit Chopra, —, Chopra, homebuyers Organizations: Housing, Service, Financial, Community Financial Services Association of America Ltd, Consumer Financial, Bureau, Federal Reserve, Fifth Circuit, Mortgage Collaborative National Conference, Congress, Mortgage Bankers Association, National Association of Home Builders, National Association of Realtors Locations: Wall, Silicon

☆ Conservatives hope Supreme Court defangs US consumer watchdog
▼ + stars: | 2023-09-12 | by ( John Kruzel | ) www.reuters.com time to read: +6 min

But the watchdog's future may be in peril thanks to a case now before the U.S. Supreme Court. Pro-business conservatives and their Republican allies believe the court fight has brought them closer than ever to dismantling the CFPB. Congress, then controlled by Democrats, authorized the agency to supervise certain financial institutions' compliance with federal consumer laws, backed by the threat of lawsuits and fines. Circuit Court of Appeals last October ruled that the agency's funding structure violated the Constitution. Biden's administration told the Supreme Court that the CFPB's funding structure approved by Congress - with a fixed amount going to the agency annually - was effectively "a standing, capped lump-sum appropriation."

Persons: Clarence Thomas, Samuel Alito, Kevin Wurm, Wells, Joe Biden's, Ellen Harnick, Barack Obama, Mick Mulvaney, Donald Trump, Mulvaney, John Kruzel, Douglas Gillison, Will Dunham, Scott Malone Organizations: U.S, Supreme, REUTERS, Rights, Consumer Financial, Bureau, Fifth Third Bank, U.S . Federal, Congress, Center for Responsible, Republican, Democrats, Republicans, Republican U.S, Community Financial Services Association of America, Consumer Service Alliance of Texas, Circuit, Trump, Federal Deposit Insurance Corporation, Office, Federal Reserve, Thomson Locations: Washington , U.S, New Orleans

☆ Student-loan borrowers' biggest defender in the government is in jeopardy
▼ + stars: | 2023-09-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +9 min

The ruling could have significant implications for student-loan borrowers — and consumers nationwide. As federal borrowers have been gearing up for the return to loan repayment in October, the agency cracked down on companies that it accused of illegally charging borrowers for normally free debt-relief services. The Supreme Court is hearing oral arguments on the case on October 3. The CFPB's enforcement actions against this type of illegal conduct are important to protecting borrowers' financial security and obtaining their money back." Now consumers will have to wait and see how the Supreme Court views a top federal consumer watchdog's constitutionality.

Persons: Sen, Elizabeth Warren of Massachusetts, Shahid Naeem, Naeem, Dodd, Frank Wall, Bill Clark, Devin Watkins, they're, beholden Organizations: Service, Supreme, Financial, Community Financial Services Association of America Ltd, Consumer Financial, Federal Reserve, Fifth Circuit, Trump, Fifth, Financial Services Association of America, American Economic Liberties, Congress, Frank Wall Street Reform, Consumer, Federal Deposit Insurance Corp, Inc, Getty, Competitive Enterprise Institute, American Association of, Social Security Locations: Wall, Silicon, Washington , DC

☆ The real reason you're using 'Girl Math' isn't as funny as the TikTok trend would make you think
▼ + stars: | 2023-09-06 | by ( Kai Xiang Teo | ) www.businessinsider.com time to read: +5 min

"Girl Math" is the humorous TikTok trend where users justify expenses with tricks. "Girl Math" may just be "Buy Now, Pay Later" in disguise, the experts said. "To me, the popularity of the "Girl Math" trend indicates a lot of pent-up guilt around our purchases," said Barrow. That's why it's important to disclose when "Girl Math" is humor instead of fact, said Sara Samuels, a wealth management advisor at Northwestern Mutual. AdvertisementAdvertisementFinancial educator Ellis even suggests setting aside money for savings or an emergency fund every time you make a "Girl Math" purchase.

Persons: Sam James, —, Ashley Morris, Isabel Barrow, Barrow, Erin Ellis, Ellis, Edelman's Barrow, Sara Samuels, Morris Organizations: Service, Consumer Financial Protection Bureau, Philadelphia Federal Credit Union, Northwestern Mutual Locations: Wall, Silicon, Philadelphia, Barrow

☆ CFPB to crack down on data brokers, Chopra says at White House event
▼ + stars: | 2023-08-15 | by ( Chelsey Cox | ) www.cnbc.com time to read: +4 min

WASHINGTON — The White House on Tuesday held a roundtable examining potential harmful data broker practices as part of an overall strategy to protect Americans' privacy. The CFPB's new rule proposals will build upon the FCRA to hold data brokers that sell highly sensitive information more accountable. One proposal, said Chopra, will define a data broker dealing in certain types of consumer data as a consumer reporting agency and the brokers' sale of data as a consumer report. Another will clarify whether credit header data, the portion of a credit report that contains identifying information, can be considered a covered consumer report. "We applaud the steps the Consumer Protection Financial Bureau is taking to stop data brokers from unlawfully collecting and selling millions of Americans' sensitive data," she said.

Persons: WASHINGTON, Chopra, There's, Arati Prabhakar, Lael Brainard, Lina Khan, Brian Boynton, Khan, Brainard Organizations: Consumer, Fair, White, Office of Science, Technology, National Economic Council, Federal Trade, Justice Department's Civil, FTC, Protection

☆ Some student-loan companies are offering borrowers cheaper payments before the October restart. Making the switch could strip away a range of debt relief programs.
▼ + stars: | 2023-08-05 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some student-loan companies are encouraging federal borrowers to refinance before the payment restart. Companies that manage private loans have started reaching out to federal borrowers, encouraging them to refinance their federal debt to get a better deal on payments. For example, SoFi — a student-loan refinancing company — sent letters to borrowers last month with a header reading, "Federal student loan forbearance is ending soon. Consumer Financial Protection Bureau Advisor to the Director Andrea Matthews told Insider in September that "the benefits to having a federal student loan have never been more tangible. Before federal payments resume in October, borrowers can enroll in the Education Department's new SAVE Plan, which is an income-driven repayment plan intended to lower monthly payments.

Persons: Joe Biden's, It's, —, forbearance, Biden's, Earnest, refinancer, refinancers, Andrea Matthews, Tanya Burnett, Burnett Organizations: Service, Education Department, Public, Biden, Consumer Financial Locations: Wall, Silicon

The Texas Bankers Association (TBA), American Bankers Association (ABA) and a small Texas bank sued in April, saying the CFPB had no authority to issue the rule because an appeals court found the regulator's funding structure unlawful. U.S. District Court Judge Randy Crane in McAllen, Texas, granted a preliminary injunction blocking the CFPB from enforcing the rule against members of both groups and McAllen-based Rio Bank. Crane blocked the rule pending a ruling by the U.S. Supreme Court on the CFPB's funding structure. The law also required the small business loan rule. 23-00144, U.S. District Court, Southern District of Texas.

Persons: Randy Crane, Crane, Dodd, Frank, Jody Godoy, Nick Zieminski Organizations: Consumer Financial Protection Bureau, Supreme, Texas Bankers Association, American Bankers Association, ABA, U.S, Rio Bank, Circuit, Appeals, Federal Reserve, Congress, U.S . Constitution, Consumer Financial, Court, Southern District of Texas, Thomson Locations: Texas, U.S, McAllen , Texas, McAllen, U.S ., Southern District, New York

☆ Senators spar over whether CFPB has the power to root out junk fees
▼ + stars: | 2023-07-26 | by ( Chelsey Cox | ) www.cnbc.com time to read: +4 min

The committee's first hearing comes as the Biden administration takes a range of steps to root out junk fees, which the CFPB says includes credit card late fees, overdraft fees and surcharges on ticket purchases. Among other actions, the agency recently fined Bank of America $150 million for charging its customers multiple overdraft fees. In his testimony, Brian Johnson, managing director of financial regulatory consultancy Patomak Global Partners, said the CFPB "has been the most enthusiastic among regulators" in targeting junk fees. Democrats argued the power to target junk fees fits within the CFPB's core duties. "And let's not forget, these are the same banks that are bankrolling the attacks on the CFPB," Warren added.

Persons: Biden, Sen, Thom Tillis, Brian Johnson, Johnson, Donald Trump, Elizabeth Warren, JP Morgan Chase, Warren, Wells, Michelle Henry, Henry, Raphael Warnock, Warnock Organizations: WASHINGTON, Financial, Biden, Bank of America, prudential, Consumer Protection, Patomak Global Partners, CNBC, Pennsylvania, Georgia Democrat Locations: Wells Fargo, Georgia

☆ Junk fees, medical debt and artificial intelligence: CFPB chief lays out regulatory agenda
▼ + stars: | 2023-07-20 | by ( Chelsey Cox | ) www.cnbc.com time to read: +5 min

Medical debtChopra said that tens of millions of Americans are battling medical debt. The crisis is compounded by debt collectors that add medical debt to credit reports as a means of coercion. The agency's crackdown on junk fees has prompted some policy changes at big banks, he added. "Many of them are getting rid of their reliance on junk fees and making their fees much more reasonable," Chopra said. Rep. Blaine Luetkemeyer, R-Mo., has said the CFPB has "no authority" on the issue because junk fees is not a legal term.

Persons: Rohit Chopra, Tom Williams, Andy Barr, Chopra, servicers, We're, Experian, Blaine Luetkemeyer, Luetkemeyer Organizations: Consumer Financial Protection, Banking, Housing, Urban Affairs, Cq, Inc, Getty, Consumer Financial, Bureau, Federal Reserve, Governors, CNBC, Education Department, U.S, Kaiser Family Foundation, Bank of America, Biden, GOP, Rep, Financial Services Locations: Ky

Search resuls for: "CFPB's"

25 mentions found