WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) published an issue spotlight on digital payment apps heavily used by consumers and businesses. The analysis finds that funds stored on these apps may not be safe in the event of financial distress, since the funds may not be held in accounts with federal deposit insurance coverage. The CFPB also issued a consumer advisory for customers holding funds in these apps and how they can make sure their funds remain safe.
In recent years, transaction volumes on payment apps have substantially increased. For example, total person-to-person (P2P) payment dollar volume quadrupled between 2018 and 2022.1 Importantly, many U.S. consumers and businesses are not simply using these services to transfer funds.
The Justice Department announced today that ESSA Bank & Trust (ESSA) has agreed to pay over $3 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in and around Philadelphia.
Quick analysis: In April, everything was down again (mostly by double digits) after a short March rebound. How far down? FDCPA was down -16.2% for the month and -18.3% YTD. FCRA was down -10.1% for the month and -30.2% YTD. And TCPA was down -16.9% for the month, but was the only one still up a bit YTD – +2.5% over April 2022. CFPB complaints were also down, -16.2% for the month and -18.3% YTD.
May was a difficult month for plaintiffs and potential plaintiffs with alleged Telephone Consumer Privacy Act and Florida Telephone Solicitation Act (“FTSA,” aka Florida’s “Mini-TCPA”) claims in Florida.
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