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.

Free community college is the boost the post-COVID-19 economy needs
Coalition members penned a letter to Speaker Pelosi and Majority Leader Schumer announcing their support for President Biden’s plans for free college tuition. Advocates are urging Congress to act because they recognize that President Biden’s plans for free college tuition are vital to their states’ economic recovery and workforce competitiveness. President Biden’s plans would help nearly 2 million more students go to college, generate $169 billion in additional GDP and strengthen our nation’s recovery from COVID-19.

Biden’s Build Back Better Act to include historic expansion of funds to address homeownership gap for people of color
A broad group of consumer, housing and financial services advocates wrote the U.S. Senate to express support for the homeownership components in President Biden’s infrastructure bill, including first-generation downpayment assistance, support for Fair Housing enforcement, and investment in the Housing Investment Fund. Advocates noted that Biden’s Build Back Better Act funds important resources needed to address the decline of affordability and accessibility of homeownership in underserved communities. The housing market needs substantial investment to help increase the supply of affordable housing, improve access to homeownership, and address the troubling homeownership gap for Black and Brown people.

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.

Groups contest major postage increase planned by USPS
In response to the U.S. Postal Service’s (USPS) proposed postage price increase, a coalition of trade associations and public and private companies joined Consumer Action in urging members of the Senate Committee on Homeland Security to oppose the plan to hike USPS postage prices for most mail by 7%. The coalition also called on legislators to direct a new review of the postal rate-setting system before the increases take effect.

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.

FinTech users deserve strong data use protections
Groups sent a joint letter to the Consumer Financial Protection asking the agency for strong rules to ensure that consumers are protected when their account data is shared with, accessed by or used by third parties, such as financial technology (FinTech) mobile apps and account aggregation services.

The next COVID-19 relief package should include these critical consumer protections
Millions of people and small businesses in the United States are experiencing tremendous financial distress because of the COVID-19 pandemic. Unemployment is skyrocketing and families are struggling to put food on the table. Congress and the administration need to enact broad-based, efficient, and effective relief that goes far beyond the CARES Act to protect people’s homes, cars, bank accounts, income, and benefits so that they can weather this crisis. Consumer Action joined nearly 100 consumer, civil rights, community and other public interest groups weigh in on recommendations for Congress' next stimulus package.

Proposed Senate bill fails to Protect Student Borrowers during pandemic
Consumer Action joined 55 other organizations in submitting a letter to Senate leadership in opposition to the Safely Back to School and Back to Work Act. This proposed legislation falls far short of what young Americans need and should expect from their elected leaders. Rather than extend vital support during a dual public health and economic crisis, this bill would leave millions of student loan borrowers without protections while failing to extend and expand a repayment suspension put in place by the CARES Act. Doing so would only make the burden of student debt heavier, leaving many young Americans financially insecure.

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