CONSUMER RECONCILIATION: CFPB delays rule to make car title loans less risky, Chase forgives Canadian debt, and robocall blocking apps may violate user privacy
The Consumer Financial Protection Bureau is delaying a new rule that would make auto title loans less risky for consumers.
The rule, known as the “underwriting provision”, was due to go into effect on August 19 and will be delayed for 15 months. The provision was originally proposed by the CFPB under the Obama administration and was intended to prevent people from taking out loans they probably couldn’t afford. It required lenders to ensure that their borrowers had the capacity to repay their loans before granting the loan. Under the Trump administration, the CFPB has already drafted a proposal to completely remove the provision once the deadline has passed.
Car title loans are notoriously risky. Usually supposed to be short term solutions, borrowers could put their cars as collateral for their loans. According to Consumer Reports, most of these borrowers get loans for 30 days and for $ 959 on average. However, a Pew study found that one in new car title borrowers fall behind on payments and end up repossessing their car.
Canadians who have incurred Chase Bank credit card debt have just received huge news.
Chase Bank announced on Friday that all of its debt had been canceled.
Chase Bank closed all Canadian credit card accounts in March 2018 as part of its decision to exit the Canadian market. At the time, customers were told to keep paying their debts.
Now, Chase says he’s made “another business decision… to forgive all outstanding balances in order to complete the release,” according to Maria Martinez, vice president of communications.
Canadian clients received a letter informing them that their debt was canceled. Chase didn’t say how many was forgiven, or how many customers affected.
Automated call blocker apps might not be much better than the annoying calls they block.
A security researcher has found that many of these apps violate user privacy by sending their data to third parties without the user’s consent.
Take a look at more stories and videos from Michael Finney and 7 on your side.
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