Consumer lending

A majority of borrowers who together hold about $400 billion in federal student debt made no payment on their loans in the pandemic era, taking full advantage of a freeze put in place at the onset of the COVID-19 crisis.

A recent California Supreme Court decision means that lenders can be on the hook for consumers’ attorney fees in situations where car dealers defraud them. The case involved TD Auto Finance and a dealer that allegedly sold a vehicle without certain advertised features.

The system may be good for the banks that own it, but it is not meeting its public mission.

The nation’s six largest credit card companies are facing questions from the Consumer Financial Protection Bureau over their alleged failure to report customer payment data on a regular basis. The agency says that the industry’s practices can hurt consumers’ ability to qualify for cheaper loans.

Companies that use artificial intelligence or machine learning in their loan decisions are legally required to provide a specific explanation when applications get denied, the Consumer Financial Protection Bureau said in a policy statement.

Royal Bank of Canada posted earnings that topped analysts’ estimates as business loans and solid credit conditions powered its retail banking business.

The bureau’s new office of competition and innovation will promote competition, host events and seek to make it easier for consumers to switch financial providers.

The Swedish buy now/pay later company Klarna Bank saw its borrowing costs rise to their highest level on record as rising rates hit the company’s debt and equity valuation. 

Strong spending trends, combined with a reduction in card repayment rates, contributed to 17% loan growth last month. The data suggests that rising fears of a recession aren’t yet changing consumers’ behavior.

While red states like Florida have embraced the cryptocurrency industry, officials in New York and Illinois are taking action on Democratic Party priorities such as diversity and climate change. Here's a look at some hotbeds of innovative policymaking.