Crimes against consumers are low-risk, high reward — What happens when hundreds of thousands of consumers lose nearly $200 million in an illegal financing scheme? According to a cursory glance at consumer finance news, not much in the way of penalties for the wrongdoer. When a company that provides lease-purchase financing to customers of retailers like Sears and…

Banking giant continues to pay settlements for taking customer cash — Wells Fargo must like paying out settlements and fines for taking money from customers. And customers must not mind too much, because Wells is one of America’s five largest banks. Here’s the latest incidence of wrongdoing: Wells Fargo has agreed to pay a $35 million civil penalty to settle U.S…

Lenders employ deceptive practices, aggressive (and illegal) collection techniques — A new report reveals that auto loans and medical debt can be danger zones for consumers in the financial marketplace. Report Highlights Unfair, Deceptive Practices in Consumer Lending | Advocate Andy | NewsBreak… Auto lenders, payday loans, and medical debt carry significant consumer risk. The Consumer Financial Protection Bureau…original.newsbreak.com

Big bank to pay $100 million to harmed consumers — America’s second-largest bank is no stranger to getting caught harming consumers. Since 2014, Bank of America has paid more than $1 billion in fines and penalties for various forms of malfeasance. Most recently, the company was ordered to pay $250 million for schemes that included “double-dipping” on overdraft fees and…

A week of consumer finance news — While some surprises can be welcome, the type of surprise that leaves you with a negative mark on your credit report and an overdraft fee in your bank account is not one of them. However, more and more consumers are using short-term, installment loans to pay for basics like groceries. Hungry for Debt? Debt trap danger lurks at the grocery checkoutadvocateandy.medium.com

Bank of America to pay $250 million fine — but no one will go to jail — It’s another day. Why not another scandal involving one of America’s largest banks? It seems Bank of America was double-dipping on overdraft fees and opening new accounts without customer permission. Now, they will be fined and have to repay customers. But that’s it. No BofA execs will face jail time…

A week of consumer finance news — The consumer finance marketplace can be full of traps and risks. And then, there are the places where there aren’t even banks, which creates a whole different set of challenges. Here’s more on the challenges of living in a banking desert — a problem that impacts many in the rural…

Junk fees represent a multibillion-dollar profit center for banking industry — Consumers are on the verge of a huge win against the powerful banking industry as the Consumer Financial Protection Bureau (CFPB) has announced a new rule that would cap credit card late fees at $8. Companies currently charge people as much as $41 for each missed payment, and these fees…

Consumer groups cheer proposal to limit late fees to “actual cost” — Credit card late fees are annoying but often viewed as a necessary element of having a credit card. Miss the payment by a day — or even a few hours — and you could be hit with fees up to $41. The Consumer Financial Protection Bureau (CFPB) says that’s excessive. …

New report highlights how banks profit from unnecessary and sometimes illegal fees — Overdraft fees. Late fees. Insufficient funds (NSF) fees. Sometimes, you pay a fee if you DON’T pay online. Sometimes, you’re charged a fee if you don’t have payments auto-debited from a checking account. The array of fees for banking is seemingly endless. Many of these fees are excessive — often…

It’s a warning about the economy — We’ve got a problem. I’ve been writing about it for a bit. The reality of buy now, pay later is that it is masking income inequality. It’s masking the makings of a great recession … or, a depression. Everything is ok — because I can “pay in four.” …

In some cases, they pave the road to jail — A recent piece in MarketWatch reveals some staggering statistics on auto loan debt: In 2019, about 85% of new car buyers in the U.S. used a loan to pay for their car, according to Public Interest Research Groups, a consumer advocacy organization. Americans currently owe about $1.5 …

User data on earned wage access products raises concerns — While payday loans get a well-deserved bad rap as predatory products that lead borrowers into a cycle of debt, a question that often arises in discussions about eliminating them is: What will replace them? One product that has come to the forefront is the Earned Wage Access loan. It’s offered…

They just keep breaking the law — It’s a wonder anyone banks at Wells Fargo anymore as the giant bank is becoming known for breaking the law and deceiving its customers. Now, the bank faces a $100 million fine for “unsafe and unsound” business practices. Wells Fargo Facing Nearly $100 Million in Fines for "Unsafe and Unsound" Practices | Advocate Andy… Federal Reserve says Wells Fargo aided a foreign bank in processing illegal transactions. One of America's largest…original.newsbreak.com

How junk fees price renters out of housing — Rising rents pricing you out of affordable housing? Junk fees could be partly to blame. Consumer advocates are calling corporate and large-scale landlords on the carpet for some ridiculous fees they say contribute to rising rents. More from NewsBreak: “Renters are already struggling to find safe and stable housing during…

The weekend collapse of two banks has advocates calling for reform, additional oversight — When the Trump Administration rolled back some key elements of Dodd-Frank back in 2018, consumer advocates warned the move could mean trouble. Five years later, we saw the collapse of two banks over a weekend — and the predictions of problems came true. Fortunately, the financial system has been shored…

It goes really bad — Seems easy, right? You have your job direct deposit your money into an account you can easily access on your phone. Everything integrates with your online/app-based payment system. Sure, it’s not FDIC-insured -but, well, that’s an antiquated system based on Depression-era worries. Umm. Well, Jason Mikula over at Fintech Business…

TAB Bank takes a hit from the FDIC — A Utah-based bank is facing additional scrutiny from the Federal Deposit Insurance Corporation (FDIC) due to its partnership with a fintech lender that charges interest rates of up to 189% on loans for auto repairs, pet purchases, and vet expenses. Jason Mikula at Fintech Business Weekly reports that TAB bank…

Consumer Bureau releases annual report of household savings, financial health indicators — results show alarming level of financial insecurity The Consumer Financial Protection Bureau (CFPB) this week released its annual analysis of household financial health. For the first time since 2019, this year’s report shows American household financial health declining. On a number of key indicators of financial health, a significant number of American households reported troubling information.

Why do Americans keep their money in Big Banks despite repeated abuse? — A recent story in the Wall Street Journal reminded me that Americans have an uneasy relationship with Big Banks. The five largest banks — Bank of America, Citigroup, JPMorgan Chase, US Bank, and Wells Fargo — control roughly half of all money in deposit accounts in U.S. banks. It seems…