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Fannie Mae/Freddie Mac Note Sales Undermine Homeownership

January 30, 2023

Government-Sponsored Enterprises (GSEs) Undercut Goals of Expanding Homeownership Through Bulk Sales of Homes to Investors WASHINGTON – Today, the National Consumer Law Center released a report examining how Fannie Mae’s and Freddie Mac’s bulk sale of 700,000 home loans to private investors has undercut their goals of supporting and expanding homeownership. Fannie Mae and Freddie…

Maryland Receives “D” Rating in Report, Fails to Protect Residents from Debt Collectors

January 24, 2023

BALTIMORE – With millions of families struggling to find financial stability as soaring inflation drives up the costs of basic necessities, our state legislature plays a vital role in protecting Maryland households from seizure of essential wages and property to pay old debts. But according to a new report from the National Consumer Law Center…

Digital Library: Protecting Awards for Named Plaintiffs; Other Class Action Practice Tips

January 11, 2023

This article provides practical steps to respond to an Eleventh Circuit ruling challenging extra recoveries for class action named plaintiffs—a ruling that could otherwise have serious consequences for the prosecution of consumer class actions. The article also includes other class action practice tips. The article explains how the Supreme Court’s Ramirez ruling should breathe new life into…

NetSpend Plans Evasions of CFPB Prepaid Rules to Preserve $80 Million in Overdraft Fees

October 28, 2016

“Small business” cards, prepaid cards with “checks” would have overdraft fees (WASHINGTON) The prepaid card provider NetSpend, a division of Total System Services (TSYS), is planning changes to its prepaid card problems to evade new rules by the Consumer Financial Protection Bureau (CFPB) and avoid losing $80 million in overdraft fee revenues. “The CFPB just…

NCLC Digital Library: New Rules Limit Fees and Use of Campus Prepaid Cards, Effective July 1

June 29, 2016

Many higher education institutions use prepaid cards or identification cards linked to bank accounts to disburse financial aid credit to students. Financial aid credit is a student’s remaining financial aid funds after tuition payment and other direct payments to the school have been made. Schools contract with third party card servicers to steer students into…

Survey of State Government Payroll Cards: Thumbs Up for Cash Access and Thumbs Down on Overdraft Fees

November 5, 2015

(WASHINGTON) Payroll cards used by many state governments to pay their employees can be a faster, cheaper, and more convenient way to receive pay than paper paychecks, according to a new report by the National Consumer Law Center. But some states allow their payroll cards to charge overdraft fees and other junk fees that eat…

Justice Department Announces New Director of the U.S. Trustee Program

January 19, 2023

The Justice Department announced today that Attorney General Merrick B. Garland has selected Tara Twomey to serve as Director of the U.S. Trustee Program (USTP) at the Department of Justice. “The United States Trustee Program plays a critical role in ensuring the fairness of the bankruptcy process — including by providing impartial oversight and protecting…

New Report Examines the Benefits and Potential Risks of Fintech Products for Consumers

March 11, 2019

National Consumer Law Center Urges Regulators and Policymakers to Maintain Consumer Protections and Proceed with Caution Washington – The use of technology in financial products and services (fintech) is resulting in a wide array of new approaches to financial products and services. A new report from the National Consumer Law Center provides a snapshot of…

Op-Ed in The Hill: Ending the black hole that’s devouring student loan payments

January 18, 2023

Early in Aubrey Plaza’s recent movie, Emily the Criminal, her character is seen calling her student loan servicer, between food delivery shifts, to ask why her recent $400 payment wasn’t applied to her balance. She is stunned by the response: “It was applied to my interest? Sorry, how much interest is being added a month?” The…

Proposed Changes to Income-Driven Repayment Improve Student Loan Affordability, But Problems Remain

January 10, 2023

The Administration’s plan would reduce loan bills for eligible borrowers and fix several program flaws, but misses opportunities to make repayment work for low-income borrowers WASHINGTON – Today, the Department of Education proposed regulations that would significantly change income-driven repayment (“IDR”) plans for tens of millions of federal student loan borrowers. While the changes to…

Advocates Praise CFPB, New York AG for Action Against Auto Finance Company

January 6, 2023

Credit Acceptance Corporation Allegedly Misrepresented the True Cost of Credit, Profited from Financing Designed to Fail Boston – Yesterday, the Consumer Financial Protection Bureau (CFPB) and the Attorney General of New York (NY AG) filed a complaint against Credit Acceptance Corporation (CAC), a predatory subprime auto finance company for misrepresenting the cost of credit and tricking…

Experts React to the Briefs Filed in SCOTUS Case Challenging President Biden’s Student Loan Relief Program

January 4, 2023

WASHINGTON — Tonight, at 9:00pm ET, NCLC staff attorney Abby Shafroth will join a group of experts, lawyers and advocates for a press conference by telephone to analyze the first briefs from the White House in the U.S. Supreme Court cases challenging President Biden’s student loan relief program. The first briefs from the White House…

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