Last week, the U.S. District Court for the Northern District of California denied Empower Finance’s motion to compel arbitration in a class action lawsuit concerning its earned wage access (EWA) product, Cash Advance. In Vickery v. Empower Finance, Inc., the court found that Empower’s Cash Advance product was “credit” under the Military Lending Act (MLA) making Empower’s arbitration agreement unenforceable under the MLA, which prohibits arbitration agreements for consumer credit extended to active-duty service members and their dependents.
Saying that the federal government shutdown makes it impossible for them to work on the case, Justice Department attorneys are asking a federal appeals court to delay its response to a request for an en banc hearing in the lawsuit challenging mass firings at the CFPB.
Late last month, California Attorney General Rob Bonta, along with Democrat attorneys general from 18 other states and the District of Columbia, sent multiple letters to the Consumer Protection Financial Bureau opposing advanced notices of proposed rulemakings that would shrink the CFPB’s oversight of the automobile finance, consumer reporting, debt collection, and international money transfer services markets. In August, the Bureau issued four ANPRs inviting comments on whether it should reduce the Bureau’s “Larger Participant” supervisory authority in these four markets by increasing the transaction threshold that determines when a company becomes subject to CFPB supervision.
The FDIC and the OCC have issued a Notice of Proposed Rulemaking that seeks to establish a standard definition for what constitutes an “unsafe or unsound practice.”
“Too often, examiners focus on a litany of process-related items that are unrelated to a bank’s current or future financial condition,” Acting FDIC Chairman Travis Hill said, in a statement outlining the NPRM, which was unanimously adopted by the agency board.
Halloween is coming—but what’s really spooky isn’t ghosts or goblins. It’s sending out millions in charged-off accounts and not knowing if you’re doing enough to bring that money back.
The real fright? You might be leaving recoveries hiding in the dark.
You just handed $1 million in charged-off accounts to your collection vendors. The question isn’t just how much they’ll recover—it’s whether you are doing enough to make sure every possible recovery dollar comes back to you.
.jpg)
.jpg)