Postings

CFPB urged to reverse earned wage actions that could create dangerous FinTech payday loopholes
A coalition of 96 consumer, labor, civil rights, legal services, faith, community and financial organizations and academics is urging the Consumer Financial Protection Bureau (CFPB) to revoke or significantly revise two actions taken in late 2020 regarding earned wage access (EWA) products. The group argued that the CFPB’s EWA advisory opinion and PayActiv approval order, which declared that certain EWA programs are not deemed “credit,” threaten to create loopholes in federal credit and fair lending laws and are being misused to promote FinTech exemptions in state laws that regulate predatory payday lending products.

The FCC should protect Americans from sneaky voicemails from telemarketers and debt collectors
The Federal Communications Commission (FCC) is considering a request to allow the use of "ringless" voicemail technology by exempting it from the Telephone Consumer Protection Act (TCPA), which prohibits most unwanted calls and texts. The new technology enables telemarketers and debt collectors to send potentially unwanted, prerecorded messages directly to the subscriber’s cell phone voicemail without ever giving the consumer the opportunity to answer—or to block—the incoming call. Consumer Action joined consumer groups in urging the FCC to deny the request to omit ringless voicemails from the TCPA. Ringless direct-to-voicemail messages are just as invasive, expensive and annoying as calls and texts to cell phones.

Protecting democracy from a lawless president
For decades, as the executive branch has increased its power, Congress has increasingly struggled to fulfil its constitutional duties to protect the rule of law by holding presidents accountable for overreaches and preventing abuses of presidential power. Advocates joined together to support the Protecting Our Democracy Act (HR 8363 and S 4880) in an effort to push for necessary institutional reforms to protect our democracy and restore Congress’s ability to check and balance the executive branch, without infringing on the president’s constitutional powers.

Requiring SSN collection by peer-to-peer payment services puts consumers at risk
Consumer rights groups sent a letter to Senators Ron Wyden and Mike Crapo of the Senate Finance Committee regarding a proposal under consideration in the budget reconciliation bill that would require peer-to-peer payment apps such as Square Cash and Venmo to collect Taxpayer Identification Numbers (TINs) for virtually all payee accounts. Because, unlike businesses, most individuals do not hold a separate TIN from their Social Security number, these companies will be collecting the SSNs of millions of Americans, potentially putting their privacy and financial health at risk.

A call for President Biden to end Big Pharma monopolies
Coalition members wrote to U.S. Health and Human Services (HHS) Secretary Xavier Becerra demanding that the White House take on Big Pharma in an effort to curb drugmakers’ monopoly power in the soon-to-be-released HHS drug pricing competition plan. Advocates called on President Biden to end the era of abusive drug pricing and treatment rationing by challenging patents and expanding generic-drug competition. As Americans face a new surge in the ongoing pandemic, there is no better time than now to break up Big Pharma monopolies.

It’s time for the Department of Education to eliminate waste, fraud and abuse in higher education
Groups wrote a joint letter to the Department of Education (ED) sharing their priorities for its negotiated rulemaking process that aim to protect student loan borrowers and taxpayers from waste, fraud and abuse. Advocates asked the ED to include substantial student and borrower representation among its negotiators, and to strengthen safeguards against predatory practices by for-profit institutions by reinstating strong borrower protection regulations, like the gainful employment and borrower defense rules.

Comprehensive privacy protections needed at home before transatlantic deal is passed
Consumer Action joined over 20 organizations in urging the Biden administration to pause negotiations on a new transatlantic data transfer agreement until Congress passes comprehensive privacy legislation and reforms surveillance laws. Until the United States addresses privacy protections for personal data, concerns about data transfers to the United States will remain, and data flow agreements are likely to be invalidated.

Protect retirement savers from risky private equity investments
Consumer Action joined allies in a letter to the Department of Labor asking the department to ensure that “defined contribution plan fiduciaries”—those responsible for ensuring that employer-based retirement plans feature safe and appropriate investments—undertake balanced consideration of the benefits and risks before they allow private equity funds to be offered to retirees.

Support closing the 90/10 loophole to protect students during the COVID-19 pandemic
Thirty-six organizations wrote to Senate Majority Leader Schumer and Republican Leader McConnell in support of closing the 90/10 loophole in the American Rescue Plan of 2021. During the "Great Recession" student enrollment at for-profit colleges increased by close to 49 percent, driven in part by aggressive and deceptive recruiting practices. And the cycle - this time driven by COVID-19 - has already started to repeat: for-profit college enrollment has increased from 13 to 15 percent, while public college enrollment, particularly at community colleges, has declined as much as 20 percent. Closing the 90/10 loophole allows for the accounting of all taxpayer dollars that flow to for-profit colleges, and the ability to identify high-risk colleges that are overly dependent on federal subsidies, and that may be financially unstable during the pandemic. The loophole has particular consequences for veterans because it leads to well-documented and disproportionate deceptive and misleading recruiting tactics directed at veterans and servicemembers.

Over 100 groups call on Federal Reserve to Strengthen CRA
More than 100 national and local civil rights, fair lending and consumer rights organizations have urged the Federal Reserve Board to strengthen the Community Reinvestment Act (CRA), a key anti-redlining and civil rights law. In detailed comments that addressed issues from access to credit, location of bank branches and investments in underserved communities, the groups laid out a plan for the Biden Administration to leverage CRA to ensure an equitable recovery from the ongoing economic, racial justice and public health crisis.

Quick Menu

Facebook FTwitter T