The CFPB today proposed strong, new federal consumer protections for the prepaid market. The proposal would require prepaid companies to limit consumers’ losses when funds are stolen or cards are lost, investigate and resolve errors, provide easy and free access to account information, and adhere to credit card protections if a credit product is offered in connection with a prepaid account.
The Sixth Circuit Court of Appeals Friday ruled against a debt buyer who it said violated the FDCPA when it sought interest charges for a credit card debt. The decision reversed a lower court ruling and included a sharp dissent from the third judge in the appellate panel.
President Obama Friday signed an executive order that calls for increased credit card protection measures for some federal benefits and expense cards distributed by the government. The President also formally endorsed the chip-and-PIN payment system for U.S. cards, a move opposed by many banking and commerce groups.
A new TransUnion study found that the consumer loan wallet – the composition of loans that people typically carry – has materially changed for both the youngest and oldest segments of the population during the last decade.
Delinquencies declined nearly across the board in the second quarter, falling in nine out of 11 categories as the economy improved and consumers responsibly managed their finances, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin.
The economic contraction that occurred in this year’s first quarter also affected the credit card market, putting downward pressure on average credit lines and monthly purchase volumes, according to the latest edition of the American Bankers Association’s Credit Card Market Monitor.
New York State Courts Chief Judge Jonathan Lippman Tuesday announced the formal adoption of new rules aimed at preventing default judgments in credit card debt collection cases. Lippman claimed that the reforms “reflect the most comprehensive effort by a court system nationally to ensure a fair legal process in consumer debt litigation.”
Organizations sometimes are confused if PCI DSS even applies to them, which is important in this industry as I have not met a collection agency that has not taken a credit card as a form of payment to resolve a debt.
Last fall, Bank of America entered into a $32 million settlement to resolve a TCPA lawsuit over debt collection calls the bank made within its credit card and mortgage units. It has been called the largest TCPA settlement ever. Late last month, the judge in the case drastically lowered the amount of money the plaintiffs’ attorneys will see for their work in the final settlement approval.
The Consumer Financial Protection Bureau (CFPB) Wednesday warned credit card companies against deceptively marketing interest-rate promotions. The Bureau is concerned that some companies are luring in consumers with offers of zero or lower interest for a specific purchase or balances transferred from another credit card, and then hitting them with surprise interest charges.