The start of 2018 has seen a whirlwind of financial and credit news. Below are some of the major stories.
The CFPB makes surprising changes
Under the interim head of the Consumer Financial Protection Bureau Mick Mulvaney, the CFPB has dropped a recent lawsuit against some lenders charging immense 900 percent interest rates online. The agency has also put a hold on a rule that restricts high-interest loans provided by payday lenders.
Credit counselors and financial coaches should warn their clients of the dangers of payday lending and other high-interest loans.
Credit card debt has exceeded $1 trillion
According to a study by Experian, consumer confidence has hit a 17 year high. In 2017, credit card debt surpassed $1 trillion. Currently, the average American has a credit card balance of $6,375.
Another round of data breaches has occurred
OnePlus and Forever 21 have both recently suffered data breaches.
- Up to 40,000 customers were affected by the OnePlus breach.
- Credit cards used at Forever 21 stores between April 3, 2017 and November 18, 2017 may have had information stolen by hackers.
If you believe you have been affected by a breach, keep careful watch of your bank and credit card statements. Check your credit score to see if there have been any sudden changes.
Many companies who suffer from a data breach release guides or even provide credit protection services for those affected. Check to see what information or offers are available if your information has been compromised.
Credit counselors and financial coaches should keep clients updated on data breaches so that clients can take appropriate measures to protect themselves.
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