Publication

Treasury reports CFPB arbitration rule would impose extraordinary costs

The Consumer Financial Protection Bureau’s arbitration rule is once again under fire – this time from the U.S. Department of the Treasury.

This new rule would ban companies from using mandatory arbitration clauses, allowing consumers to participate in class-action lawsuits.

DODD-FRANK HEARING PREP

CBA President and CEO Richard Hunt ahead of Wednesday’s mark-up: “Designating risk based on how big a financial institution is does not make sense and it hurts consumers. Allowing regulators to take a big-picture view of risk by looking at the activities a financial institution undertakes instead of a simple assets threshold is more telling and can reduce unnecessary compliance burdens that limit credit availability to consumers.”

Be your own bank guard if your account is at risk

Maybe you saw a suspicious charge on your bank statement. Or your debit card is missing from your wallet. If you believe your account is at risk, you need to act fast. Your money could be in jeopardy.

Payday loans face new challenge: Can borrowers afford them?

Lenders that offer payday loans and other small advances to cash-strapped consumers must first determine if the borrowers can afford to repay the debt under a long-awaited federal rule finalized Thursday.

The rule, adopted by the Consumer Financial Protection Bureau, also would curtail repeated attempts by the lenders to debit payments from borrowers’ bank accounts, a practice that racks up mounting fees and can trigger account closures.

Consumer Watchdog Cracks Down on Payday Lenders, Bucking Trump

The deregulatory winds blowing through Washington aren’t benefiting the $3.6 billion payday-loan industry, as the U.S.’s top consumer watchdog issued rules Thursday that will dramatically change how many companies providing expensive credit to cash-strapped borrowers do business.

CFPB curbs on payday lenders get tangled in Cordray's future

The Consumer Financial Protection Bureau will require payday lenders to verify income and take other steps to protect borrowers, issuing a long-awaited rule that has become tangled in a tug of war over Director Richard Cordray’s future.

The rule limits how often a lender can attempt to debit a borrower's account, a practice that can rack up bank fees. It also curbs lenders’ ability to advance cash repeatedly to the same borrowers, most of whom are working class and low-income Americans.

New U.S. rule on payday loans to hurt industry, boost banks: agency

WASHINGTON (Reuters) - Revenues for the $6 billion payday loan industry will shrivel under a new U.S. rule restricting lenders’ ability to profit from high-interest, short-term loans, and much of the business could move to small banks, according to the country’s consumer financial watchdog.

The Consumer Financial Protection Bureau (CFPB) released a regulation on Thursday requiring lenders to determine if borrowers can repay their debts and capping the number of loans lenders can make to a borrower.

Business Groups File Lawsuit Against CFPB’s Arbitration Rule

WASHINGTON—A coalition representing financial companies sued the Consumer Financial Protection Bureau Friday, challenging a new rule making it easier for consumers to band together to sue over complaints about bank accounts, credit cards and payday loans.

Finance Industry Plans Lawsuit to Overturn CFPB Rule

A coalition of corporate lobbying groups, led by the U.S. Chamber of Commerce, sued the Consumer Financial Protection Bureau to overturn a rule that makes it easier for aggrieved customers to file lawsuits against financial firms.

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