In October 2023, the Federal Reserve Board issued a proposal to lower the maximum interchange fee that a large debit card issuer can receive for a debit card transaction. The due date for comments on this proposal, originally February 12, 2024, has been extended to May 12, 2024. The Consumer Bankers Association (CBA) recently commissioned research on debit card interchange fee limits and the potential implications if the proposal to reduce debit interchange caps is finalized.… Continue Reading

The Pew Charitable Trusts has released an issue brief, “Consumers Want the Right to Resolve Bank Disputes in Court,” in which it urges the CFPB to “expeditiously finalize” its proposed arbitration rule.  The CFPB’s proposal would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing or participating in a class action with respect to the covered consumer financial product or service. … Continue Reading

In its new report containing its findings from a survey of prepaid card users, The Pew Charitable Trusts urges the CFPB’s “speedy adoption” of its proposed prepaid card rule.  The CFPB’s proposal, which would mandate new disclosures, error resolution procedures, consumer liability limits for unauthorized transactions, fee limits, and added requirements for cards with overdraft or credit features, was issued in November 2014. … Continue Reading

As previously reported, the Pew Charitable Trusts (“Pew”) released a payday lending report last month (the “Report”), the same day that CFPB Director Cordray made some harsh remarks about payday loan “debt traps” in a speech to the Consumer Advisory Board.  We have heard reports that news of the impending Pew Report may have spurred Director Cordray to get ahead of the issue in his speech earlier in the day. … Continue Reading

February was not a good month for payday lenders.  As previously reported, on February 20, CFPB Director Cordray expressed pointed concerns about payday and short-term loan “debt traps” in a speech to the Consumer Advisory Board. 

Perhaps not coincidentally—rumors abound that the events were linked—the Pew Charitable Trust released a new payday lending report later the same day. … Continue Reading

 The Pew Charitable Trust has released a report on the use of arbitration clauses by banks in checking account agreements. The report contains Pew’s findings on the prevalence of arbitration clauses and consumer attitudes about arbitration.  It has been reported that Pew has sent or will send the report to the CFPB to use in connection with its arbitration study.  … Continue Reading

The Pew Research Center has just released a report that seems likely to bolster the CFPB’s concerns about student loans. The report notes that “in nearly every demographic and economic category” more households are borrowing more money to finance the cost of a college education.  Perhaps not surprisingly, the report indicates that those households now facing the greatest debt burden are both younger and less well off than their counterparts. … Continue Reading