Advocate for consumer financial protections. Director of Financial Services, Consumer Federation of America. Otherwise, reading working on my serve. OmO!
The solution to the regulatory gray zones around #BaaS, let alone problems like #Synapse that occurred within them, will not be found by granting the space more privileges. Light touch #fintech#KYC facilitates #scams. bit.ly/43h4qZo
If regulators grant banking #charters to 10 #fintechs, and 3 fail within 3 years, is that a net positive? Or 2, or 4? That is the question. How much risk is acceptable?
Literally, I have heard from banks that they are scared about having an #SPCP, or even not calling in existing loans. For opponents of "regulatory overreach," the #CFPB's radical #ECOA final rule is a prime example of a regulator telling banks how to lend. consumerfed.org/press_releas…
To the @WhiteHouse claim that the #CFPB costs consumers billions... the cost of regulation is: your car comes with brakes, those brakes meet safety standards, someone inspects them, and car companies pay a price when they manufacture dangerous vehicles. @consumerfed
The #Bitsika card perfectly illustrates how some #fintechs and their partner banks see KYC evasion as a product differentiator. They add risk across the #payments ecosystem. bitsika.com/
This is such an important connection.. linking BSA and consumer protection feels like a real path to stopping harm and getting victims actual redress. Great work pushing this forward.
I have a new paper out today calling for greater linkage b/w BSA work against #IllicitFinance & #ConsumerProtection enforcement efforts to fight #scams. This is an opportunity for victims to receive redress. Do you know about funnel accounts? Learn more by reading my paper!
New paper from CFA examines the dramatic rise in #fraud & #scams and calls for closer coordination between consumer protection and the policing of illicit finance. By @AdamRust9consumerfed.org/press_releas…
The Mercury #charter application runs 17 pages, with a 1-page #CRA plan. By comparison, OneMain's 2024 app was 101 pages, with a 28-page CRA plan. De novo shouldn't mean desultory.
Notwithstanding that a #ratecap cannot occur without congressional action, limiting such a change to one year effectively requires deferred-interest cards for everyone. The main takeaway should be that financial services expenses need to be a part of the #affordability agenda.
Notwithstanding the Qs of if a #creditcard cap can be done by fiat (it can't), and if 10% is the right price...I hope the idea that costs for financial services are as much a part of the #affordability agenda as the price of eggs, rent, and transportation.
I'm kind of let down by Wall Street penalizing #creditcard banks today; usually, the wisdom of crowds leads to a more realistic analysis. Suffice to say, Congressional action, rulemaking, and court injunctions won't be done by next Tuesday.