UPDATE: Donald Trump Takes Office as the 47th US President

geechiedan said:
What is the CFPB's Overdraft Fee Cap Rule?
  • Purpose:
    The rule aims to protect consumers from excessive overdraft fees, which can disproportionately impact low-income individuals.

  • Scope:
    The rule applies to banks and credit unions with more than $10 billion in assets.
    • Option 1: Cap Fees at $5: Banks can choose to cap their overdraft fees at $5 per transaction, which the CFPB estimates is a "breakeven" fee that allows banks to cover the costs of administering overdraft programs.

    • Option 2: Charge Cost-Based Fees: Alternatively, banks can charge fees that cover the actual costs and losses incurred from providing overdraft services.

    • Option 3: Treat Overdrafts as Loans: Banks can also choose to treat overdrafts as a form of credit, requiring them to comply with the Truth in Lending Act (TILA) and Regulation Z, which governs credit card lending. This would include providing disclosures about the terms of the overdraft loan, including an annual percentage rate (APR), and requiring consumers to agree to the overdraft credit before it is offered.
  • Effectiveness:
    The rule was set to take effect in October 2025.

  • Potential Impact:
    The CFPB estimates that the rule could save consumers billions of dollars in overdraft fees annually.

  • Legal Challenges:
    The American Bankers Association (ABA) and other industry groups have opposed the rule, arguing that it could lead to banks discontinuing or restricting overdraft services.

  • Recent Developments:
    The Senate voted to strike down the rule in March 2025, effectively repealing it.


alot of people are gonna FAFO come later in the year
Click to expand...
They helped a brother take a bunch of stuff of my credit report a few years back. Not only that but I was paying these attorneys $150 a month to help with stuff on my credit report. Towards the end I knew they were full of shit and decided to cancel. Even though they removed a bunch of things, it was something I could have done myself which I ended up doing through the CFPB.

They went after that law firm and a few months ago they sent me a check for $1700. CFPB was the truth to me, it would be a big loss if they were dissolved as an agency. :(




The CFPB (Consumer Financial Protection Bureau) is distributing $1.8 billion in refunds to 4.3 million consumers who were harmed by credit repair companies, including Lexington Law and CreditRepair.com, after a court ruled the companies violated the Telemarketing Sales Rule by charging illegal advance fees.

Here's a more detailed breakdown:
  • The Action:
    The CFPB secured a legal judgment against Lexington Law and CreditRepair.com, along with their parent companies, in August 2023.

  • The Violation:
    The companies were found to have violated the Telemarketing Sales Rule by charging fees for credit repair services before providing consumers with proof that the promised results were achieved.

  • The Outcome:
    The CFPB is now distributing $1.8 billion in refunds to consumers who were harmed by these companies.

  • The Refund Process:
    Consumers who were harmed by Lexington Law, CreditRepair.com, and their parent companies between July 21, 2011, and August 30, 2023, are eligible for a refund.

  • Bankruptcy and Business Shutdown:
    Following the court ruling, the companies filed for Chapter 11 bankruptcy protection and shut down about 80% of their business operations, including their telemarketing call centers.

  • Scam Alert:
    The CFPB is warning consumers to be aware of potential scams related to these refund checks, and advises against providing personal information or paying anyone to help receive the funds.

  • Where to get more information:
    For more information, visit CFPB-LexLaw.org.

  • Initial Checks:
    Initial checks finished mailing on January 6, 2025, to eligible consumers based on records obtained by the CFPB.

  • Check Void Date:
    Initial checks will void on April 6, 2025, but reissued checks will have an extended void date.
 
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