Welcome to the first issue of consume all Towards 2023.
Earlier this year, we spent some time thinking about how best to present consumer finance news. Our goal is to provide up-to-date information while also providing information about why the topic is important.
thank you for reading.
“The Consumer Financial Protection Bureau last year accused the bank of relying on new technology, faulty algorithms, and improperly managing automated systems, causing unfair home and car foreclosures and loss of benefits payments. announced that it had fined
Why this matters: AI is not exempt from consumer protection. That’s the message the CFPB and other regulators are sending as AI and concerns about it continue to gain popularity. The CFPB, Federal Trade Commission, Equal Employment Opportunity Commission, and Department of Justice have all directed resources and staff to identify how AI could adversely affect consumers’ lives. reporting. They argue that there is a belief that discrimination is not possible when AI makes decisions, but in practice, biases are sometimes built into the data in which AI makes decisions. . At least some in the industry believe government involvement is necessary. Samuel Altman, CEO of OpenAI, which develops ChatGPT, believes that “government intervention will be essential to mitigate the risks of increasingly powerful” AI systems. Congress doesn’t seem ready to enact a comprehensive AI bill yet, but the fact that Mr. Altman and his CEOs of other tech companies recently gathered at the White House to discuss AI suggests that government is at some level It may suggest that the action of —
Nicholas P. Mooney II
“The new circular addresses the illegal ‘reopening’ of deposit accounts, which can impose junk fees on consumers.”
Why this matters: When a savings account is closed, consumers typically lose access to the account and may not receive notifications of account activity. If a bank decides to unilaterally reopen its accounts, consumers may unknowingly incur various fees such as overdrafts, underfunding, and monthly fees. Over-borrowing an account can also result in a negative credit report from your bank. Such harmful conduct exposes banks to liability under state and federal law. If you have a valid reason for needing to reopen an account with your financial institution, you should consider seeking prior approval or providing sufficient notice to the consumer. —
ty shadrick clamper
“The Supreme Court could at any time issue a decision on the Biden administration’s broad student loan forgiveness plan.”
Why this matters: President Trump originally enacted a student loan moratorium three years ago because of the COVID-19 pandemic. The debt ceiling bill included language barring President Biden from re-extending the current student-loan moratorium unless there is another national emergency. This means student loan payments will resume for his 40 million borrowers starting August 29, 2023. No interest accrued during the suspension, but interest will begin accruing again on August 29, 2023. However, just because the suspension ends on August 29, 2023 does not mean that payments will be made immediately, as it will take some time for the bills from the Department of Education to be printed and distributed to borrowers. not. In that case, the borrower must give a reasonable period of time to make the first payment within his three years. Additionally, the Biden administration is considering other flexible ways to soften the blow of resuming payments. This includes granting grace periods during which late payments are not penalized.
There are steps borrowers can take now to prepare for the end of the student loan moratorium. This includes reconnecting with the loan servicer, especially if the servicer has changed since the borrower last made a payment. If repayment remains financially difficult, borrowers should consider affordable repayment options. These options include income-based repayment plans. Not only will this option reduce your monthly loan payment (which is cut in half for some plans), but it may also save you huge taxes at the end of the repayment period. Finally, if repayment is not possible due to the borrower’s current financial situation, the borrower may be able to request financial hardship, unemployment grace, or a moratorium. While these options do not relieve payment obligations, they may give the borrower ample room to recover. The suspension of payments for students is over, but there are options for students who need help paying their loans.
Interestingly, borrowers who were in default when the student loan moratorium began have more options than those who were making regular student loan payments. Because the debt ceiling bill does not address their situation. Collection activity on delinquent student loans has also been suspended for the past three years. With the lifting of the student loan suspension, collection efforts will also resume, but defaulters will have additional time to monitor the situation before the resumed collection efforts begin under the Biden administration’s Fresh Start Program. given time. The program aims to give defaulting borrowers a way to bring their loan payments up to date. The program will run for one year after the suspension of payments ends, during which collection activity will remain suspended. —
Alexander L. Turner
“Russia will continue to build new crypto platforms in response to sanctions,” State Duma official Anatoly Aksakov said.
Why this matters: In November 2022, Russian lawmakers announced plans to establish a national cryptocurrency exchange. They have now scrapped that plan. With cryptocurrencies playing a key role in what is said to be the world’s first cryptocurrency war in Ukraine, it is not surprising that Russia would consider creating a state exchange. The Ukrainian military is backed by cryptocurrencies, while the Russian military seeks to use cryptocurrencies to evade economic sanctions. Commentators questioned whether Russia’s state-run cryptocurrency exchange would be acceptable to the cryptocurrency community, as the exchange would be subject to close oversight and control by the Russian government. One commentator cited the example of using domestic exchanges to send money to dissidents or move assets out of Russia, leading to knocks on the door in the middle of the night. Even without a national exchange, the use of cryptocurrencies and digital currencies is not over in Russia. It is still home to many cryptocurrency companies, the government is working on legislation aimed at the industry, and it is working to develop a central bank digital currency. —
Nicholas P. Mooney II
“Many consumers increasingly prefer the flexibility of leasing when choosing a new vehicle.”
Why this matters: Car prices continue to rise. From 2020 to 2021, the average new car price increased by 17.2%. As car prices rise along with interest rates, new types of car financing are emerging. Leasing lowers the barriers to entry for owning a new car. A pan-European mobility consumer pulse survey conducted by McKinsey asked car buyers how they rate leased products and add-on features and whether they are willing to pay for these features. . The study also explored the adoption and actual costs of all-in-service deals. All-in service agreements, where insurance and maintenance are included in the lease fee, were found to be the number one reason new-vehicle customers lease a new vehicle. Another leasing add-on that buyers love is the ability to have a flexible ownership model that allows the lessee to switch to another leased vehicle during the lease term. The lessee is willing to pay an additional 10 percent on the base lease fee to switch vehicles or suspend the contract during the lease term. They are willing to pay more for the ability to switch vehicles, but would they? changed cars at a lower rate. The actual cost of these additional leasing services is not yet known, but is likely lower than originally projected. Will this kind of leasing add-on service cross the Atlantic and land in the US? It’s also unknown, but if they succeed in Europe, we may see them here sooner or later. . —
Alexander L. Turner
U.S. House of Representatives and U.S. Senate Committee Meetings
For your reference, we have included a list of relevant US House and Senate committee meetings.
These are the events scheduled for June and July 2023 at press time.
- There are no events scheduled at this time.
- There are no events scheduled at this time.
- No events scheduled at this time
- There are no events scheduled at this time.
