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☆ CFPB says buy now, pay later firms must comply with U.S. credit card laws
▼ + stars: | 2024-05-22 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Rohit Chopra, director of the CFPB, testifies during a House Financial Services Committee hearing on June 14, 2023. The Consumer Financial Protection Bureau declared on Wednesday that customers of the burgeoning buy now, pay later industry must abide by the same federal protections as users of credit cards. The agency unveiled what it called an "interpretive rule" that deemed BNPL lenders essentially the same as traditional credit card providers under the decades-old Truth in Lending Act. "Regardless of whether a shopper swipes a credit card or uses Buy Now, Pay Later, they are entitled to important consumer protections under long-standing laws and regulations already on the books," CFPB Director Rohit Chopra said in a release. The CFPB, which last week was handed a crucial victory by the Supreme Court, has pushed hard against the U.S. financial industry, issuing rules that slashed credit card late fees and overdraft penalties.

Persons: Rohit Chopra, —, PayPal — Organizations: Financial, Consumer Financial, PayPal, Supreme, U.S

☆ As student loan forgiveness nears $160 billion, here's what to know about the relief programs
▼ + stars: | 2024-05-20 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

US President Joe Biden announces student loan relief with Education Secretary Miguel Cardona (R) on August 24, 2022 in the Roosevelt Room of the White House in Washington, DC. Olivier Douliery | AFP | Getty ImagesThe Biden administration fixes to the country's $1.6 trillion student loan system have resulted in regular announcements to forgive large shares of that debt. In total, the U.S. Department of Education has canceled almost $160 billion in federal student loan debt for nearly 4.6 million borrowers while President Joe Biden has been in office. Here what to know about the aid programs that have led to that relief. Income-driven repayment plansPublic Service Loan ForgivenessNavigating the Public Service Loan Forgiveness program has been famously difficult.

Persons: Joe Biden, Education Secretary Miguel Cardona, Olivier Douliery, Biden, George W, Bush, Federal Perkins Organizations: Education Secretary, White, AFP, Getty, U.S . Department of Education, Public, Consumer Financial, Family Education, Federal, Federal Perkins Loans, Education Department Locations: Washington ,

☆ Opinion: Credibility is the key at Trump trial
▼ + stars: | 2024-05-19 | by ( Richard Galant | ) edition.cnn.com time to read: +21 min

The idea that Cohen talked to Trump about Daniels on that call “was a lie,” Blanche alleged. Moreover, my experience has been that juries don’t decide based upon one moment — they base their judgment on an overall view.”There were allegedly three parties aware of the scheme to conceal the real reason Trump paid Cohen more than $400,000 in supposed legal fees: Trump, Cohen and Allen Weisselberg, then-chief financial officer of the Trump Organization. “Weisselberg could be the linchpin to validate Cohen’s claims about Trump agreeing to reimburse him through Trump Organization, as a business expense,” wrote attorney Stacy Schneider. Trump seems to be tempted to go mano a mano and show that he is better fit to be commander-in-chief. The new requirement for GOP politicians wanting to demonstrate their loyalty to Trump seems to be visiting the Manhattan courthouse where he’s on trial.

Persons: CNN —, ” Mark Twain, “, Twain, ” Michael Cohen, Donald Trump, —, Trump, Stormy Daniels, Todd Blanche, Cohen, Norm Eisen, Blanche, ”, pummeled Cohen, Robert Mueller, Nick Anderson, Agency Cohen, Keith Schiller, Daniels, ” Blanche, ” Eisen, don’t, Allen Weisselberg, Stacy Schneider, Weisselberg, David Zurawik, “ I’ve, Sen, Robert Menendez, He’s, George Santos ., CNN “ It’s, he’s, ‘, Henry Cuellar, ” Cupp, Drew Sheneman, Georgia —, Vladimir Putin’s, Frida Ghitis, ” Ghitis, Joe Biden’s, ” Dana Summers, “ Biden, ” Julian Zelizer, mano, Biden, ” Bill Bramhall, Stephanie Griffith, Howard Tucker, Gayle Fleming, Michael Ventura Gayle Fleming, Biden —, ” Tom Brady’s, Kara Alaimo, Tom Brady “, Kevin Hart, Gisele Bündchen, Brady, Benjamin, Vivian, ’ Brady, ’, Alaimo, Brady didn’t, Nafees Syed, Kamel El Hilali, Andrew Borene, freakout Scott Stantis, Jeff Yang, … ” Brown, Keith Magee, Brown, backpedaling, Forget, Doug Burgum, Scott Jennings, Burgum’s, Bill Bramhall, Content Agency Clarence Thomas Washington, Clarence Thomas ’, Dean Obeidallah, Thomas, Harlan Crow, ” Clay Jones, John Oliver’s, Steve Vladeck, “ Thomas, ” Don’t, Clayton Swope, Dan Perry, Netanyahu, Jill Filipovic, Miss Teen USA Mary Ziegler, Bob Kolasky, Megan L, Ranney, Karen Tang, Halle Berry, Naomi Watts, Jonathan Yeo, King Charles III, Aaron Chown, Holly Thomas, King Organizations: CNN, Trump, Tribune, Agency, Trump Organization, Twitter, Facebook, DC, Robert Menendez of New, GOP, ” Texas, White, Europe, Russia, Kyiv, Biden, ABC, Democratic Party, Netflix, Garden State, Content Agency, Capitol, Consumer Financial, Board, Fifth Circuit, ICC, Miss USA, Miss Teen USA, Buckingham Palace, Royal Locations: New York, Robert Menendez of, Robert Menendez of New Jersey, Russian, Ukraine, Slovakia, Georgia, Soviet Republic, United States, Cleveland, “, Manhattan, North, . North Dakota, ” That’s, Louisiana , Mississippi, Texas, Florida’s, Buckingham

☆ Supreme Court upholds CFPB funding: Here's what you need to know
▼ + stars: | 2024-05-17 | 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 EmailSupreme Court upholds CFPB funding: Here's what you need to knowSupreme Court upheld Consumer Financial Protection Bureau's funding mechanism on Thursday. CFPB Director Rohit Chopra joins ‘Squawk Box’ to discuss this ruling and more.

Persons: CFPB, Rohit Chopra Organizations: Consumer

Regulatory warsThe Supreme Court lifted the existential threat hanging over the Consumer Financial Protection Bureau, rejecting a challenge to the agency’s funding. The decision could have huge consequences for a raft of conservative-led lawsuits involving administrative authority — but business groups and Republicans are vowing to fight on. A recap: Payday lenders had sued the C.F.P.B. over a rule that would limit the number of times they could withdraw money from a customer’s account for repayment. The companies and conservative groups argued that the practice wasn’t harmful, and said the way the regulator is funded — via annual allocations from the Fed’s profits rather than from Congress — was unconstitutional.

Persons: Congress — Organizations: Consumer Financial Protection, Congress

☆ Supreme Court Rejects Challenge to Consumer Watchdog’s Funding
▼ + stars: | 2024-05-16 | by ( Adam Liptak | ) www.nytimes.com time to read: +1 min

The Supreme Court rejected a challenge on Thursday to the way the Consumer Financial Protection Bureau is funded, one that could have hobbled the bureau and advanced a central goal of the conservative legal movement: limiting the power of independent agencies. The vote was 7 to 2, with Justice Clarence Thomas writing the majority opinion. “Under the appropriations clause,” he wrote, “an appropriation is simply a law that authorizes expenditures from a specified source of public money for designated purposes. The statute that provides the bureau’s funding meets these requirements. We therefore conclude that the bureau’s funding mechanism does not violate the appropriations clause.”

Persons: Clarence Thomas, Thomas, ” Organizations: Consumer Financial, Treasury

☆ What the Supreme Court Ruling Means for Other Consumer Bureau Actions
▼ + stars: | 2024-05-16 | by ( Emily Flitter | Stacy Cowley | ) www.nytimes.com time to read: +1 min

But the ruling falls far short of eliminating the bureau’s legal obstacles. Immediately after the ruling was announced, lawyers for the bureau, which is charged with preventing consumer abuse in the financial industry, began preparing dozens of legal filings to try to unfreeze its activities. Among them are requests to federal judges to end stays on new rules and on subpoenas to financial firms. While the Supreme Court’s ruling should resolve a few of the stays, the bureau will still struggle to overcome other roadblocks. He noted that Justice Samuel A. Alito Jr.’s dissent cited three recent consumer bureau actions that, in Justice Alito’s view, would be “major changes” in consumer protection law.

Persons: ”, Graham Steele, Samuel A, Alito Jr, ’, Alito’s Organizations: Consumer, Treasury Department

☆ Supreme Court saves consumer protection agency after a challenge from conservatives and the payday lending industry
▼ + stars: | 2024-05-16 | by ( John Fritze | Joan Biskupic | ) edition.cnn.com time to read: +3 min

Congress created the bureau in 2010 to protect consumers from financial scams. The payday lending groups sued over a 2017 bureau rule that prohibited attempts to withdraw payments from accounts after two consecutive tries failed due to insufficient funds. Because of that, the conservative appeals court tossed the payday lending rule. The Biden administration appealed to the Supreme Court in 2022. CNN Supreme Court analyst Steve Vladeck said the ruling is another instance of the high court not endorsing controversial opinions from the 5th Circuit.

Persons: Clarence Thomas, Biden, Massachusetts Democratic Sen, Elizabeth Warren, ” Thomas, Steve Vladeck, “, would’ve, ”, Vladeck, Samuel Alito, ” Alito, Neil Gorsuch, Stuart, Trump Organizations: CNN, Massachusetts Democratic, Federal Reserve, Circuit, University of Texas School of Law Locations: New Orleans

The Consumer Financial Protection Bureau headquarters in Washington, D.C., on May 14, 2021. The Supreme Court ruled Thursday that the funding structure of the Consumer Financial Protection Bureau is legal. The court in a 7-2 decision rejected an argument that the CFPB's funding method violated the U.S. Constitution's Appropriations Clause because Congress had not annually authorized money for the agency. Instead, Congress authorized the CFPB to draw funding from the Federal Reserve system that the agency's director deems necessary for its work. The majority's ruling reversed a decision by the 5th Circuit U.S. Court of Appeals, which found the CFPB's funding mechanism was unconstitutional.

Persons: Clarence Thomas, Thomas, John Roberts, Brett Kavanaugh, Amy Coney Barrett, Sonia Sotomayor, Elena Kagan, Ketanji Brown Jackson, Samuel Alito, Neil Gorsuch, Thursday's, Alito groused Organizations: Consumer Financial, Washington , D.C, Federal Reserve, Federal, System, 5th Circuit U.S, of Appeals, Community Financial Services Association of America, Consumer Service Alliance of Texas Locations: Washington ,

☆ Biden administration extends key deadline for student loan forgiveness
▼ + stars: | 2024-05-15 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

The U.S. Department of Education is giving borrowers more time to meet a key student loan forgiveness deadline. "The Department is working swiftly to ensure borrowers get credit for every month they've rightfully earned toward forgiveness," U.S. Borrowers pursuing the popular Public Service Loan Forgiveness program can also receive additional credit from the payment count adjustment, as long as they certify their qualifying employment for those months. The payment count adjustment is an attempt to rectify longstanding issues for student loan borrowers. The Consumer Financial Protection Bureau also found borrowers were needlessly steered into expensive forbearances, during which interest accrues and credit toward forgiveness is paused.

Persons: —, Biden, Education James Kvaal, weren't Organizations: U.S . Department of Education, Education, Finance, Public, Government, Office, Consumer Financial Locations: U.S, deferments

☆ Judge blocks Biden administration rule capping credit card late fees at $8
▼ + stars: | 2024-05-11 | by ( Eva Rothenberg | ) edition.cnn.com time to read: +3 min

New York CNN —A federal judge in Fort Worth, Texas, on Friday blocked a new Biden administration rule that would prohibit credit card companies from charging customers late fees higher than $8. “Consumers will shoulder $800 million in late fees every month that the rule is delayed — money that pads the profit margins of the largest credit card issuers. The new rule would apply to large credit card issuers — those with more than 1 million accounts. The push to target credit card fees is part of the Biden administration’s efforts to ease financial burdens for many Americans. The new rule also intended to close a 2010 loophole the CFPB says has been “exploited” by credit card companies to hike fees on late payments.

Persons: Mark T, Pittman, Donald Trump, ”, Chuck Bell, Biden Organizations: New, New York CNN, Biden, US, Chamber of Commerce, Consumer Financial, CNN, of Commerce, Consumer Locations: New York, Fort Worth , Texas

☆ Judge Blocks New U.S. Rule Limiting Credit Card Late Fees
▼ + stars: | 2024-05-10 | by ( Cade Metz | More About Cade Metz | ) www.nytimes.com time to read: 1 min

In March, the Consumer Financial Protection Bureau announced that a new federal rule would cap fees on late credit card payments at $8 a month, estimating that the change would save American households $10 billion a year. On Friday, a federal judge in Fort Worth temporarily blocked the rule, siding with bank and credit card company lobbyists who contend in a lawsuit that it is unconstitutional. Now, the lobbyists can continue their legal fight in U.S. District Court before Judge Mark T. Pittman, who granted the preliminary injunction. The consumer bureau’s new rule would limit issuers to an $8 fee unless they could show that more money was needed to cover their collection costs. The bureau estimated that the rule would apply to more than 95 percent of all outstanding credit card balances.

Persons: Mark T, Pittman Organizations: Consumer Financial, Bureau Locations: Fort Worth, U.S

☆ The rule capping credit card late fees at $8 is on hold — here’s what it means for you
▼ + stars: | 2024-05-10 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

The U.S. banking industry won a key victory in its effort to block the implementation of a Consumer Financial Protection Bureau rule that would've drastically limited the fees that credit card companies can charge for late payment. The CFPB estimates that the rule would've saved American families $10 billion a year in fees paid by those who fall behind on their bills. It would've capped late fees that are typically $32 per incident to $8 each and limited the industry's ability to hike the fees. "Consumers will shoulder $800 million in late fees every month that the rule is delayed — money that pads the profit margins of the largest credit card issuers," a CFPB spokesman told CNBC on Friday. The CBA said it will continue to press its case in the courts on why the CFPB rule should be "thrown out entirely."

Persons: Rohit Chopra, Mark Pittman, would've Organizations: Consumer Financial Protection Bureau, Banking, Housing, Urban Affairs Committee, Washington , D.C, Financial, Bureau, Northern, Northern District of Texas, U.S . Chamber of Commerce, U.S, CNBC, Consumer Bankers Association, District, CBA Locations: Washington ,, U.S, Northern District

☆ The credit-card industry's Hail Mary push to keep charging you bigger late fees
▼ + stars: | 2024-05-09 | by ( Paul Squire | ) www.businessinsider.com time to read: +2 min

Hoping to say goodbye to high credit-card late fees? A judge could side last minute with credit-card companies trying to stop a new cap on fees. AdvertisementCredit-card companies aren't giving up their late fees that easily. In March, the Consumer Financial Protection Bureau announced that the federal government had made a new rule capping credit-card late fees. Despite an election-year push by President Joe Biden to cut down on so-called "junk fees," credit-card companies won't go quietly, she wrote.

Persons: —, they've, wouldn't, Emily Stewart, Joe Biden, Stewart, Matt Schulz Organizations: Service, Consumer Financial, Bureau, CNBC, US Chamber of Commerce Locations: Texas

☆ CFPB rule to save Americans $10 billion a year in late fees faces possible last-minute freeze
▼ + stars: | 2024-05-09 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

A Consumer Financial Protection Bureau regulation that promised to save Americans billions of dollars in late fees on credit cards faces a last-ditch effort to stave off its implementation. Led by the U.S. Chamber of Commerce, the card industry in March sued the CFPB in federal court to prevent the new rule from taking effect. That could hold up the regulation, which would slash what most banks can charge in late fees to $8 per incident, just days before it was to take effect on Tuesday. The credit card regulation is part of President Joe Biden's broader election-year war against what he deems junk fees. Big card issuers have steadily raised the cost of late fees since 2010, profiting off users with low credit scores who rack up $138 in fees annually per card on average, according to CFPB Director Rohit Chopra.

Persons: Tobin Marcus, Joe Biden's, Rohit Chopra Organizations: Financial, Bureau, U.S . Chamber of Commerce, D.C, Northern District of, Wolfe Research Locations: Texas, Washington, Northern District, Northern District of Texas

☆ US regulators are looking at potential ‘bait and switch’ schemes with airline-affiliated credit card reward points
▼ + stars: | 2024-05-09 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +3 min

New York CNN —If you use a points-and-rewards credit card offered by an airline in partnership with a big bank, how much are the points you’ve accrued worth in dollars? The terms and conditions of such card programs can be confusing and in some instances they can be changed at any time. “For many families looking to finance a trip or a vacation, those [credit card] benefits are really valuable. “[But] our review of all the fine print suggests that credit card companies and airlines have the power to quickly and dramatically devalue those points by making it more challenging to redeem them. Such a drop in revenue, banks argue, could jeopardize the availability of rewards programs.

Persons: you’re, It’s, ”, Rohit Chopra, Chopra, Transportation Peter Buttigieg, Rob Nichols, ” Nichols, Nichols, Jaret, Seiberg, Biden, Trump Organizations: New, New York CNN, Department of Transportation, Consumer Financial Protection Bureau, Transportation, American Bankers Association, Cowen Washington Research Group Locations: New York, CFPB, U.S

The Major Supreme Court Cases of 2024No Supreme Court term in recent memory has featured so many cases with the potential to transform American society. In 2015, the Supreme Court limited the sweep of the statute at issue in the case, the Sarbanes-Oxley Act of 2002. In 2023, the Supreme Court temporarily blocked efforts to severely curb access to the pill, mifepristone, as an appeal moved forward. A series of Supreme Court decisions say that making race the predominant factor in drawing voting districts violates the Constitution. The difference matters because the Supreme Court has said that only racial gerrymandering may be challenged in federal court under the Constitution.

Persons: Donald J, Trump, Anderson, Sotomayor Jackson Kagan, Roberts Kavanaugh Barrett Gorsuch Alito Thomas, Salmon, “, ”, Mr, Nixon, Richard M, privilege.But, Fitzgerald, Vance, John G, Roberts, Fischer, Ruth Bader Ginsburg, Clarence Thomas, Samuel A, Alito Jr, Alito, ’, Moyle, Wade, Roe, Johnson, Robinson, Moody, Paxton, Robins, Media Murthy, Sullivan, Murthy, Biden, Harrington, Sackler, Alexander, Jan, Raimondo, ” Paul D, Clement, Dodd, Frank, Homer, Cargill Organizations: Harvard, Stanford, University of Texas, Trump, Liberal, Sotomayor Jackson Kagan Conservative, Colorado, Former, Trump v . United, United, Sarbanes, Oxley, U.S, Capitol, Drug Administration, Alliance, Hippocratic, Jackson, Health, Supreme, Labor, New York, Homeless, Miami Herald, Media, Biden, National Rifle Association, Rifle Association of America, New York State, Purdue Pharma, . South Carolina State Conference of, Federal, Loper Bright Enterprises, . Department of Commerce, Chevron, Natural Resources Defense, ”, SCOTUSPoll, Consumer Financial, Community Financial Services Association of America, Securities, Exchange Commission, Exchange, Occupational Safety, Commission, Lucia v . Securities, Federal Trade Commission, Internal Revenue Service, Environmental Protection Agency, Social Security Administration, National Labor Relations Board, Air Pollution Ohio, Environmental, Guns Garland, Alcohol, Tobacco, Firearms, Explosives, National Firearms, Gun Control Locations: Colorado, Trump v . United States, United States, Nixon, Florida, Gulf of Mexico, Dobbs v, Idaho, Roe, Texas, States, New, New York, Grants, Oregon, . California, Martin v, Boise, Boise , Idaho, Missouri, Parkland, Fla, Murthy v . Missouri, . Missouri, ., South Carolina, Alabama, SCOTUSPoll, Lucia v, Western

☆ What exactly goes into closing costs?
▼ + stars: | 2024-05-04 | by ( Samantha Delouya | ) edition.cnn.com time to read: +6 min

But there is an often-overlooked expense when buying a home: closing costs. At the same time, the Biden administration plans to take aim at so-called “junk fees” hidden in closing costs. New York, Delaware and Washington, DC, have the highest average closing costs, according to Bankrate; while Missouri, Indiana and North Dakota have the lowest. Lowering closing costs on your ownThere is one relatively simple way to lower your overall closing costs: shop around. “When you compare those offers, examine not just the rate itself but also the closing costs.

Persons: homebuyers, —, Biden, ” Jeff Ostrowski, , ” Ostrowski, you’re, homebuyers haven’t, Brian Connolly, it’s, “ It’s, ” Connolly, Connolly, ”, Freddie Mac, ” Genaro Villa Organizations: CNN, Consumer Financial, National Association of Realtors, realtors, University of Michigan, NAR, homebuyers Locations: New York , Delaware, Washington, Missouri, Indiana, North Dakota, Bankrate, AnnualCreditReport.com

☆ Medical Debt Shows Up Less Often on Credit Reports
▼ + stars: | 2024-05-03 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Rohit Chopra, the bureau’s director, said in a statement that “further reforms” were needed to scour medical debt from credit histories. The bureau is considering a rule to ban medical debt from consumer credit files. The bureau estimated in a 2022 report that well over half the debt that appeared on credit reports as being in collection was medical debt. People can incur medical bills unexpectedly, and many think that their health insurance will cover the costs. And the consumer bureau previously found that medical collection debt reported to the credit bureaus was “plagued by inaccuracies.”

Persons: —, TransUnion —, Rohit Chopra Organizations: Consumer Financial

☆ Federal Student Aid head Richard Cordray, tasked with FAFSA rollout, to step down
▼ + stars: | 2024-04-26 | by ( Katie Lobosco | ) edition.cnn.com time to read: +7 min

Washington CNN —The head of the Federal Student Aid office, which has faced criticism for the botched rollout of this year’s college financial aid form, will be stepping down. The announcement of Cordray’s departure comes as his office has been under fire for problems with a new version of the Free Application for Federal Student Aid, or FAFSA, released late last year. “If there was a financial aid director, or even a college president, that delayed financial aid on their campus for up to six months, the professional price that would be paid for that would be pretty steep,” Justin Draeger, president of the National Association of Student Financial Aid Administrators, told lawmakers. Cordray’s tenureAs the head of FSA, Cordray oversaw not only the FAFSA but also the entire $1.6 trillion federal student loan system. It also sued Navient, one of the biggest federal student loan servicers, for allegedly processing payments incorrectly.

Persons: Richard Cordray, Cordray, Justin Draeger, Virginia Foxx, Miguel Cardona, Cordray’s, Rich Cordray’s, ” Cardona, “, Rich, Obama, ” Cordray, Pell, Biden, Trump, Massachusetts Sen, Elizabeth Warren —, Navient, “ I’m, ” Warren Organizations: Washington CNN, Federal, Aid, CNN, Department of Education, Federal Student Aid, Education, Workforce, National Association of Student Financial, Republican Rep, Consumer Financial Protection Bureau, Democratic, National College, of Education, Public, Consumer Financial, Massachusetts, Corinthian Colleges Locations: North Carolina, Ohio

The cost of pawn shop loans can be high, but in some situations they can offer financial leeway. How pawnshop loans workThe process of getting a pawnshop loanPawnbrokers assess your items just as they do for customers looking to pawn for a direct sale. About 60% of users of pawn loans, title loans, or payday loans were turned down partially or in full for requested mainstream credit sources, according to the CFPB. Unlike qualifications for personal loans, pawn loans don't require a credit check or information on financial assets. Pawnshop loans can get expensive because they have higher interest rates and fees compared to traditional loans.

Persons: you've, You'd, you'll, They're, you'd, Kate Underwood Kate Underwood Kate Underwood, www.kateunderwoodwriter.com Read Organizations: U.S . Department of, National Pawnbrokers Association, Consumer Financial Protection Bureau, Chevron Locations: Virginia Beach , Virginia, Richmond , Kentucky

☆ Coding boot camp BloomTech and CEO Austen Allred deceived students, US government agency says
▼ + stars: | 2024-04-17 | by ( Rosalie Chan | ) www.businessinsider.com time to read: +1 min

The CFPB issued an order against coding boot camp BloomTech and CEO Austen Allred. The CFPB said BloomTech, formerly known as Lambda School, deceived students. The Consumer Financial Protection Bureau issued an order against coding boot camp BloomTech and its CEO, Austen Allred, on Wednesday. The CFPB said the coding boot camp, previously known as Lambda School, deceived students about the cost of loans and made false claims about graduates' hiring rates. In addition, BloomTech must pay $64,000 and Allred must pay $100,000 in civil penalties, which will go toward a victim relief fund, according to the agency.

Persons: Austen Allred, BloomTech, CFPB, Allred Organizations: Lambda School, Consumer Financial, Business

☆ Department stores face another squeeze. This time, with store credit card revenue
▼ + stars: | 2024-04-10 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +6 min

For fiscal year 2023, credit card revenue totaled $619 million for Macy's and approximately $475 million for Nordstrom . The three companies do not break out how much of total credit card revenue comes from late fees. All of that adds up to dwindling credit card revenue for retailers, who can now expect to see it shrink even further. Target's credit card revenue fell to $667 million last year, down from $734 million in the prior fiscal year. Gap does not disclose credit card revenue, but its Chief Financial Officer, Katrina O'Connell, said on an earnings call that losses from late fees will be "largely offset in 2024 by other levers within our credit card program."

Persons: Robert Nickelsberg, it'll, Jane Hali, Kohl's, David Silverman, Silverman, —, Michael Fiddelke, Macy's, Adrian Mitchell, It's, Nordstrom, Katrina O'Connell Organizations: Getty Images Department, Consumer Financial, Bureau, Associates, Nordstrom, Fitch, TD Bank, Shoppers, Adobe Analytics, Citi, Sam's Locations: New York City

☆ Credit Card Companies Are About to Invent New Fees for Consumers
▼ + stars: | 2024-04-07 | by ( Emily Stewart | ) www.businessinsider.com time to read: +8 min

Some of those annoying fees on your credit card may soon be getting smaller. Banks and credit-card companies are almost certainly trying to figure out where else they squeeze money out of you. The response to the interchange-fee settlement has been a bit more muted: The Electronic Payments Coalition, which represents Visa, Mastercard, and other credit-card companies, said it was OK with the swipe-fees cap. Taken together, it's clear that many companies in the credit-card business would rather not be dealing with this situation. According to the Merchants Payments Coalition, Mastercard is now planning to increase different credit card fees soon, it's "network assessment" fee.

Persons: Banks, Matt Schulz, JPMorgan Chase, Mark Elliot, Doug Kantor, Mark Mason, Rich Fairbank, We've, it's, Ira Rheingold, Amanda Jackson, Emily Stewart Organizations: Consumer Financial, Mastercard, Visa, Bank Policy Institute, Electronic Payments Coalition, UBS, JPMorgan, American Express, National Association of Convenience Stores, Merchants Payments Coalition, Capital, JPMorgan Chase, National Association of Consumer, Companies, Financial Reform, Business

☆ Here are some big money blind spots you need to avoid, advisors say
▼ + stars: | 2024-04-04 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Here are some of the biggest financial blind spots, according to several certified financial planners on CNBC's Digital Financial Advisor Council. 1. Credit scoresConsumers often don't understand the importance of their credit score, said Kamila Elliott, CFP, co-founder and CEO of Collective Wealth Partners based in Atlanta. The average person with a credit score between 760 and 850 would get a 6.5% interest rate, according to national FICO data as of April 1. The latter's monthly payment would cost $324 more relative to the person with a better credit score — amounting to an extra $116,000 over the life of the loan, according to FICO's loan calculator. "Ten out of 10 people couldn't explain how the tax withholding system works," said Ted Jenkin, CFP, CEO and founder of oXYGen Financial based in Atlanta.

Persons: Kamila Elliott, Wills, Barry Glassman, I'm, Glassman, Elliott, That's, Ted Jenkin, Uncle Sam, Jenkin Organizations: Getty, Digital Financial, CFP, Wealth Partners, Consumer Financial, Bureau, Wealth Services, Westend61, Collective Wealth Partners, Business, Employers, Workers Locations: Atlanta

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