Director Consumer Financial Protection Bureau Rohit Chopra: Cash advance practices need changes
Recently, the Consumer Financial Protection Bureau Director Rohit Chopra (CFPB) said that his department intends to come to grips with the issue of excessive payments on cash advance in the United States. There are many situations when interest payments on purchases of $ 10 can end up costing the consumer 8 times more. Moreover, such rates exist for the most part only for low-income segments of the population which causes a heavy public outrage.
Bankers shamelessly charge high interest rates not even hiding that this is the most profitable, albeit not honest, way of making a profit for them. According to the CFPB, in 2019, the country’s three largest banks earned over $ 5 billion in overdraft profits, and the total market profit equaled to $ 15 billion. That is a vast sum, isn’t it?
The history of the emergence of overdrafts
It’s hard to believe now, but the emergence of overdrafts at the beginning of the late 20th century was aimed at encouraging customers to buy. This service was provided by banks completely free of charge cash advance, without charging a commission. For example, banks allowed their regular customers to pay rent or electricity bills by check in the mail in cash advance, even before they received their paychecks.
However, when the population became hooked on this service, in the early 2000s, almost all banks made the overdraft service paid and began to charge a commission. Banks’ profits only increased over the years https://www.instantcashtime.com/no-credit-check/. For example, Bank of America overdraft fees are $ 35 per $ 100, Wells Fargo fees are $ 35, and Chase fees are $ 34.
What CFPB offers
Obviously, by proposing to tighten control over the collection of overdraft fees, the CFPB is not trying to completely stop this practice. It is beneficial for low-income segments of the population, and helps to avoid complicated procedures for obtaining a bank loan. The Bureau proposes a number of measures aimed at regulating the process, as well as alleviating the financial burden for low-income individuals. The following measures are proposed:
Additional measures to control this process are also being discussed. A proposal was made to all banks engaged in this field of activity to make proposals for optimizing the process in the initial quarter of 2022.
How banks reacted to the CFPB’s actions
Almost immediately after the statement of CFPB Director Rohit Chopra, the Director of Capital One Richard Fairbank announced the abolition of cash advance collection from clients in the new 2022. He called this step a manifestation of humanity and simplification of life for US citizens. However, why did this step follow only after the statement of the CFPB head?
Most banks, even though they tightened controls, have not given up on high fees. Yes, JPMorgan Chase stated that it intends to introduce a daily grace period for its clients, but there are no plans to cut interest rates on payments. Many banks have openly stated that overdraft payments are easy money, and that no one is going to voluntarily give up such profits. Well, then the CFPB statement was announced just in time.
Timeless architectural features, such as courtyards, are always associated with bringing the naturally public forms to the world’s heart, building the most peaceful, secluded outdoor areas. These outdoor spaces maximize the living experience with their private space feature, which gives one the option for leisurely relaxation, recreation, or gardening. Furthermore, it has also been a […]
Imagine walking into a sunlit room with high ceilings, warm wooden floors, and a view of a leafy courtyard. How do you feel? Calm? Inspired? At ease? That’s not just your mood—it’s your brain responding to the space around you. Neuroarchitecture is an evolving domain that merges the understanding of neuroscience, psychology, and architecture to […]
A vertical garden design is a garden that grows vertically on the surface of a wall, over a column, or inside a beam or any other surface. It acts as a living wall or a surface that grows vertically instead of a horizontal surface. Vertical garden ideas have become a trend for small balconies where […]
Architecture is more than just the construction of buildings, it is a reflection of our values, art, culture, and society. It is a movement towards new, promising, and philosophical design strategies. One such movement that significantly influenced the architectural landscape is Postmodernism architecture. In this research article, readers will find a comprehensive guide for Postmodernism […]
When you are building a new home or renovating your existing space, you definitely want it to look its best and last for ages. You want something worth every penny you spend. But when we talk about making a smart choice, it’s not just about how beautiful your home looks from the outside. The decisions […]
Staircase railing design, in 2025, is surpassing mere functionality and becoming a pivotal element in interior design. Design trends embrace bold materials, sculptural forms, and thoughtful craftsmanship to elevate staircases into architectural features. From minimalist lines to artistic expressions, these 25 staircase railing ideas capture the spirit of contemporary living. Let’s delve into the blog […]
What if the home of the future didn’t have walls? Modern architecture homes aren’t just about aesthetics – it’s a rebellion. A conscious break from tradition. In a world obsessed with innovation, our homes are becoming laboratories of design, sustainability, and radical thought. Modern architecture homes are sharp-edged, glass-wrapped, tech-infused sanctuaries that defy the standard. […]
Indian homes place equal importance on pooja room door designs as they do on main door designs. With diverse and unique ethnic backgrounds, every family strives to reflect their personalities and identities in their designs. These identities can encompass religious or spiritual interests, local contexts, or other personal elements. This series of blogs, featuring 50 […]
Gate Design is an important feature of any home. Numerous scopes for experimentation open up when delving into the design possibilities. Materials like wood and black steel are popular options in Indian homes. At the same time, designers also experiment with a combination of materials that suits their aesthetic. Buying mass-produced Sydney automated gates has […]
The word “Vastu” refers to the dwelling place of humans and gods, while “shastra” means science or knowledge, hence Vastu Shastra for house is the science of architecture. Vastu Shastra for house is an ongoing practice in India since one can remember. Almost every architect and designer wields it in conceptualizing their projects. Vastu Shastra provides […]