Holiday Shoppers Beware! Buy Now Pay Later and Deferred Interest Credit Cards Hold Hidden Dangers
New brief explains new protections for BNPL users, offers tips for consumers considering BNPL and no-interest credit card promotions.
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New Rights for Buy Now, Pay Later Purchases
Shoppers often have the choice to “buy now, pay later” using companies such as Klarna, AfterPay, Sezzle, Affirm, Splitit, and PayPal. With the typical “pay-in-four” buy now, pay later (BNPL) loan, a quarter of the price is due at checkout followed by three payments every two weeks for the next six weeks. BNPL credit can…
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DC Attorney General’s Office Takes Action Against EarnIn Over 300% APR Loans
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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Consumer Advocates Urge Regulators to End Predatory Bank-Fintech Partnerships
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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Comments on Risks of Bank-Fintech Arrangements Involving Lending
The National Consumer Law Center, the Center for Responsible Lending and the Student Borrower Protection Center submitted to the Office of the Comptroller of the Currency, Federal Reserve System, and Federal Deposit Insurance Corp. on the Request for Information on Bank-Fintech Arrangements Involving Banking Products and Services Distributed to Consumers and Businesses. The comments focus…
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Comparing APRs on Small Loan Alternatives
Consumers who wish to borrow small amounts of money may have several options. Comparing them can be difficult, especially since consumers do not always get annual percentage rate (APR) disclosures. The APR is an important price comparison tool, providing an apples-to-apples rate comparison for borrowing the same amount of money for the same amount of…
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Comments to the FTC in the Matter of Rent-to-Own Store Swaps
Comments of the National Consumer Law Center, on behalf of its low-income clients and Consumer Action, Consumer Federation of America, National Association of Consumer Advocates, National Consumers League, Open Markets Institute, and U.S. PIRG regarding a case where Federal Trade Commission (FTC) uncovered evidence that three major rent-to-own (RTO) players engaged in a market allocation…
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Testimony Before House Financial Services on Examining Rental Purchase Agreements and the Potential Role for Federal Regulation
Margot Saunders, senior attorney at the National Consumer Law Center testified on behalf of our low income clients, as well as the Consumer Federation of America, Consumers Union, and the U.S. Public Interest Research Group regarding rent to own contracts and whether H.R. 1588 is the appropriate vehicle for federal regulation. The topic of this…
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NCLC, CRL & CFA Comments in Support of CFPB’s Proposed Interpretive Rule on Earned Wage Advances
These joint comments support an interpretive rule proposed by the CFPB that would clarify that earned wage advance products are credit transactions.
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160+ Groups Urge Clear Fee Disclosures for Paycheck Advance Apps in Letter to the CFPB
Coalition letter calls for clearer cost and fee disclosures for workplace payday loans.
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165 Organizations and Academics Support the CFPB’s Paycheck Advance Interpretive Rules
The undersigned consumer, labor, civil rights, legal services and community organizations write in strongsupport of the Consumer Financial Protection Bureau’s proposed interpretive rule on emerging paycheckadvance products, sometimes marketed as “earned wage” products. Workers should not have to pay to be paid, and we support the CFPB’s efforts to guard against predatory lending in the…
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Consumer Advocates Support CFPB’s Interpretive Rule on Buy Now Pay Later Loans, Call For Additional Consumer Protections
BNPL Purchases Should Have the Same Protections as Credit Card Purchases
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