AFSA this week responded to a request for information (RFI) from the Consumer Financial Protection Bureau (CFPB) regarding the credit card market. The bureau is seeking information as part of its mandate to “conduct a review…of the consumer credit market every two years.”
AFSA’s letter laid out two key areas for the bureau’s consideration.
The first urged the bureau to act cautiously in the payment systems space, as new technologies continue to move payment systems from physical cards to mobile wallets and connected devices.
“These emerging technologies will have a global, transnational impact and so we believe the CFPB should move cautiously and allow financial institutions maximum flexibility to respond to ever-evolving challenges,” Celia Winslow, Vice President of Legal & Regulatory Affairs wrote in the letter.
The second area called on the bureau to consider regulating the growing debt settlement market. These companies, often referred to as “debt relief” or “debt settlement” companies, “claim they can settle a consumer’s debt with a significant reduction in the amount owed to a creditor or debt collector.”
These companies generally encourage consumers to stop paying creditors and charge exorbitant fees, even though consumers can often work directly with creditors for settlements without fees. The bureau’s website cautions consumers against using debt settlement companies and the letter commends both the CFPB and the Federal Trade Commission (FTC) for their actions in this area.
The letter asks that the bureau takes a closer look at these companies and the harm they are causing consumers and consider writing rules that protect consumers from ending up in deeper debt.
Riley Key, financial services attorney, tackles legal pitfalls in latest AFSA Today podcast
Apr 26, 2019
Riley Key, Attorney with Bradley Arant Boult Cummings: Riley focuses on counseling clients in the financial services world. He discusses those issues, social media, and more in this episode. Riley recently spoke at AFSA's Law and Compliance… Read the rest
Join AFSA on Thursday May 9, 2019 at 2 p.m. ET for the next installment of our popular webinar series with PCI Compliance & Your Call Centerpresented by PayNearMe.
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Registration for THE EDGE Closes April 30
Apr 24, 2019
Each year since the mid-1980s, the AFSA Education Foundation offers two important enrichment programs for employees of member companies. The first program is THE EDGE, an acronym for Education, Development, Growth, and Enrichment. Designed… Read the rest
The American Financial Services Association (AFSA) held its 36th annual Independents Conference & Expo this week in Austin, Texas, at the brand new Fairmont Hotel.
AFSA once again received tremendous support from its members in… Read the rest
Kraninger outlines her vision for CFPB’s future
Apr 17, 2019
In a speech yesterday outlining her vision for the Consumer Financial Protection Bureau (CFPB), Director Kathy Kraninger emphasized the importance of “… empowering consumers to help themselves, protect their own interests,… Read the rest