The Federal Trade Commission is sending more than $2.6 million in refunds to consumers harmed by online cash advance provider FloatMe. The company deceived consumers with false promises of “free money” and discriminated against some consumers who applied for cash advances.
Today, the Consumer Financial Protection Bureau (CFPB) published guidance to help federal and state consumer protection enforcers stop banks from charging overdraft fees based on phantom opt-in agreements. Phantom opt-ins occur when banks claim they have customers’ consent to charge overdraft fees but there is no proof they actually obtained that consent. Under the Electronic Fund Transfer Act, banks cannot charge overdraft fees on ATM and one-time debit card transactions unless consumers have affirmatively opted in.
Good things tend to consolidate as the cream rises to the top. The FinTech sector has seen meteoric growth over the past decade, disrupting traditional financial services and revolutionizing how consumers and businesses transact. Recent trends, however, indicate a shift toward consolidation in the space.
The new wave of artificial intelligence – so-called AI – is bringing with it promises as well as threats. By assisting workers, it can raise productivity and boost real wages. By making use of large, underutilised data, it can improve outcomes in services including retailing, health and education.
Time’s nearly up for federal student loan borrowers to start repaying or else face credit score consequences soon. “To protect the most vulnerable borrowers,” President Joe Biden last year offered a 12-month “on-ramp” to repayment “so that financially vulnerable borrowers who miss monthly payments during this period are not considered delinquent, reported to credit bureaus, placed in default, or referred to debt collection agencies.”
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