When you are living in challenging circumstances, every small victory counts. The fact that most people who buy lottery tickets have less employment income than they need to make ends meet surprises no one who has ever lived paycheck to paycheck. Winning a free lottery ticket is worth the price of the original ticket, if only for the brief burst of hope it gives you, even if the free ticket turns out to be a dud. At least you can go through the rest of your day with a spring in your step because you got two lottery tickets for the price of one. 

Likewise, financial stress is death by a thousand cuts. You are not poor simply because your paycheck is not very much; it is the late fee followed by that reinstatement fee followed by the fact that parking costs an arm and a leg at the only bank that would let you open an account. We may take it for granted, but corporations’ ability to nickel and dime consumers out of their meager paychecks used to be worse. Unfortunately, the federal government is rescinding dozens of consumer protection policies that went into effect after the financial crisis of 2008. To find out more about protecting yourself after the CFPB declares open season on consumers, contact an Oakland lawsuits, collections, and creditor harassment lawyer.

A Farewell to Consumer Protections?

The Consumer Financial Protection Bureau (CFPB) was the response of the Obama administration to abusive practices by lenders and businesses that led to the financial crisis of 2008. Since its inception in the early 2010s, the CFPB has issued many pieces of guidance regarding business and lending practices that place consumers at a disadvantage. For example, it required businesses to cancel subscriptions the first time the customer asked. It also took aim at so-called junk fees, which are fees that a customer pays without receiving a service in return. Overdraft fees were one such junk fee that the CFPB sought to eliminate, and it almost worked.  For a while, it seemed like overdraft fees would soon be gone for good.

Everything changed this year. The current leadership of the CFPB revoked over 70 policies, some of which had been in place since the earliest days of the CFPB. For example, oversight over businesses that provide financial services to members of the military could become less strict.  Nursing homes may once again begin sending patients’ unpaid bills to collections. Lenders may begin to discriminate against prospective borrowers based on sex or sexual orientation without legal repercussions.

In other words, the financial services available to the 99 percent may become riskier. Consumers should be informed about all the things lenders can now get away with, and they should make their financial decisions accordingly.

Contact the Law Office of Melanie Tavare About Protecting Yourself From Predatory Lending

A debt relief lawyer can help you look out for red flags when you partake of financial services aimed at consumers who rely on employment income. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.