New data shows low-wage workers could pay $700/year or more under pending bills in Connecticut, Maryland, Massachusetts, New York, and other states NEW YORK – The New York Attorney General yesterday filed lawsuits against fintech payday lenders DailyPay and MoneyLion for violating the state’s usury rate laws and engaging in deceptive practices. The lawsuits reveal…
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Senate to Vote Wednesday on Eliminating Oversight of Payment Apps; CFPB Drops Suit Against Zelle
The CFPB found that the 2020 Opinion’s analysis of what constitutes “credit” under TILA was “significantly flawed” and that the Opinion, which was limited to completely free advances, had been misunderstood and misused to support claims that EWAs are not credit.
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New brief explains new protections for BNPL users, offers tips for consumers considering BNPL and no-interest credit card promotions.
Advocates Applaud Enforcement Action Against the Payday Advance App for Violating DC’s Interest Rate Cap and Deceiving Borrowers with False Claims and Advertising WASHINGTON – In an enforcement action filed yesterday by the Attorney General of the District of Columbia against the payday advance app EarnIn, the AG rejected EarnIn’s claim that its loans are…
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WASHINGTON — The Center for Responsible Lending (CRL), National Consumer Law Center (NCLC), and the Student Borrower Protection Center (SBPC) submitted comments urging bank regulators to end bank-fintech partnerships that engage in predatory lending, evade the law, and pose a high risk of unfair, deceptive, or abusive practices and violations of consumer protection laws. “Banks should…
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Coalition letter calls for clearer cost and fee disclosures for workplace payday loans.
BNPL Purchases Should Have the Same Protections as Credit Card Purchases
Originally appearing in the Los Angeles Times on July 24, 2024, Michael Hiltzik interviews NCLC associate director Lauren Saunders for coverage of the CFPB’s efforts to rein in predatory payday and earned wage access loans. “A payday advance that is repaid on payday is a payday loan, and fintech cash advance apps that call themselves…
Advocates applauded the proposed interpretative rule released today by the Consumer Financial Protection Bureau (CFPB) to address evasions by fintech payday lenders that hide the cost of 300% annual percentage rate (APR) loans and evade state rate caps.
Appearing in American Banker on June 24, 2024, Claire Williams interviews NCLC senior attorney Carla Sanchez-Adams for coverage of the impact of the Synapse collapse. The FDIC — which is adept at stabilizing customer accounts when a bank fails — can’t swoop in because no bank has failed. And the FDIC has tried to crack…
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Appearing in The New York Times on May 31, 2024, Ann Carrns interviews NCLC Associate Director Lauren Saunders for coverage of the popular “buy now, pay later” installment loans and new CFPB rules to treat them like credit cards. While some card protections under the Truth in Lending Act don’t apply to these alternative loans, consumer advocates…
Read More about The New York Times: ‘Buy Now, Pay Later’ Borrowers Get More Safeguards With New Rule
