Payments News

On The Web

nbsp;

Regulation

Regulator Homes In On ‘Loan Stacking’ Across Buy Now, Pay Later Firms

“Buy now, pay later services (BNPL) are growing by leaps and bounds, but the lightly regulated industry could end up causing more harm than good for consumers, according to a new U.S. government report. The BNPL lenders offer consumers the option to pay for purchases in interest-free installments over a relatively short period; four payments […]
nbsp;

Regulation

U.S. Consumer Watchdog Plans to Regulate ‘Buy-Now, Pay-Later’ Companies

“The U.S. Consumer Financial Protection Bureau (CFPB) plans to start regulating “buy-now, pay-later” (BNPL) companies like Klarna and Affirm Holdings due to worries their fast-growing financing products are harming consumers, the agency said on Thursday. The watchdog, which does not currently oversee BNPL companies or products, will issue guidance or a rule to align sector standards […]
nbsp;

Domains

The P2P Fraud Conundrum

“Have you ever received an automated message from your bank warning you about an unauthorized payment? If so, you may want to think twice before acting on it. According to a recent report in The New York Times, some individuals have received instructions to send payments through peer-to-peer (P2P) payment apps such as Zelle or Venmo to reverse supposedly fraudulent transactions, only to […]
nbsp;

Regulation

Unlocking Consumer Bank Data Stokes Chopra’s ‘Underworld’ Fears

“Consumers who let budgeting apps or payment platforms access their banking data shouldn’t feel as “powerless” about how that information is used if a pending regulation works as planned, said the head of the Consumer Financial Protection Bureau. The bureau is working to finish a long-awaited rule that would make it easier for people to […]
nbsp; nbsp;

Regulation

Consumer Bureau to Push Banks to Refund More Victims of Scams on Zelle and Other Payment Services

“The Consumer Financial Protection Bureau is preparing to prod banks to pay back more customers who are the victims of scams on Zelle and other money-transfer services, according to people familiar with the coming regulatory effort. Under new guidance the bureau is preparing to release in the coming weeks, banks could face heightened requirements around certain scams […]
nbsp; nbsp;

Regulation

CFPB Initiates Review of Credit Card Company Penalty Policies Costing Consumers $12 Billion Each Year

“The Consumer Financial Protection Bureau (CFPB) is taking the first step toward addressing credit card company penalty policies costing consumers $12 billion each year, starting by looking at excessive late fees. In an Advance Notice of Proposed Rulemaking published today, the CFPB asks for information on the Federal Reserve Board of Governors’ 2010 immunity provision […]
nbsp;

Companies

CFPB Invokes Dormant Authority to Examine Nonbank Companies Posing Risks to Consumers

“The Consumer Financial Protection Bureau (CFPB) announced that it is invoking a largely unused legal provision to examine nonbank financial companies that pose risks to consumers. The CFPB believes that utilizing this dormant authority will help protect consumers and level the playing field between banks and nonbanks. The CFPB is also seeking public comments on […]

On The Wires

nbsp;

Regulation

U.S. Consumer Chief Chopra to Revisit Rules Around Credit Card Fees, Abuses

“The U.S. consumer watchdog will revisit its rules around credit card fees in a bid to stamp out abuses, discourage excessive late fees and boost competition, the agency’s director told Congress on Wednesday, confirming a Reuters April report.  “I am asking the staff to look at whether we should reopen the CARD Act rules … […]