Banks have reportedly more than doubled their lending to nonbank financial institutions (NBFIs) over the past five years and are now lending those companies $1 trillion a year.
This lending enables banks to profit from the growing share of lending that is being done by NBFIs, but it has also raised concerns among banking regulators, Bloomberg reported Thursday (March 27).
In an era where data privacy is becoming increasingly important, state data privacy regulations are rapidly evolving, reshaping the landscape for financial services companies. As legislation tightens and consumer expectations around data protection rise, collections departments across lenders, collection agencies, debt buyers, credit unions, and debt settlement companies are compelled to adapt.
On March 20, the Arkansas governor signed into law Arkansas Act 347, known as the Earned Wage Access Services Act. Sponsored by Representative David Ray (R) and Senator Ben Gilmore (R), this legislation aims to regulate earned wage access (EWA) providers. Notably, “providers” is defined to include a person engaged in the business of offering earned wage access, but not an employer that advances a portion of earned wages directly to employees or independent contractors.
Saying that the bureau under the Biden Administration abused its power, the CFPB is seeking to reverse its settlement with Townstone Financial.
“CFPB abused its power, used radical ‘equity’ arguments to tag Townstone as racist with zero evidence, and spent years persecuting and extorting them – all to further the goal of mandating DEI in lending via their regulation by enforcement tactics,” said CFPB Acting Director Russell Vought.
The Federal Trade Commission (FTC) has taken action against Click Profit, a business opportunity scheme that allegedly misled consumers with false promises of substantial passive income through online sales. A federal court has temporarily halted the operation, which is accused of defrauding consumers out of millions of dollars.
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