For Total System Services—the Georgia-based parent company of Netspend, a leading prepaid card provider—the lobbying funds paled in comparison to what stood to be lost. In October, weeks after the CFPB finalized its rule, Total System Services’ chief executive projected the company would lose between $80 million and $85 million in overdraft and other fee revenue thanks to a provision in the new regulation requiring companies to check the consumers’ creditworthiness before allowing them to overdraw their accounts.
The push to repeal the prepaid card rule under the Congressional Review Act, a legislative tool Republicans have used more than a dozen times this year to scrap Obama-era regulations, never gained traction. But that has not stopped Netspend from continuing to try to stave off the rule.
In a comment letter earlier this month, Netspend urged the CFPB to delay the rule’s effective date to April 2019. The CFPB previously delayed the rule from this October to April 2018, but Netspend said it needs additional time to “implement the changes required by the rule in a very deliberative and careful manner.”
Netspend’s proposed extension mirrored American Express’ suggestion of a further delay of one year. PayPal proposed a six-month extension beyond the current April 2018 effective date.
The proposals to further delay the rule have aroused concern in the consumer advocacy community. With the CFPB’s director, Richard Cordray, widely expected to enter the Ohio governor’s race early next month, some groups are wondering whether a further delay could buy the next leader of the bureau time to revise the rule in a more industry-friendly fashion.
“We think industry has had a long time to implement this rule,” said Lauren Saunders, associate director of the National Consumer Law Center.
“We’ve got to worry about anything that delays people getting the protection they need now,” she added. “You have to worry about what’s coming next.
“Should I stay or should I go?” It’s a famous song lyric that was certainly on the minds—at least in some form—of corporate executives this week mulling whether to leave White House advisory panels in response to President Donald Trump’s comments on the violence in Charlottesville. The panels disbanded after executives pulled out in protest, but some, including the former head of Boeing, made the case for staying put. [New York Times]
Meanwhile, one planned panel never got off the ground. Infrastructure is all about moving things forward, but Trump’s planned infrastructure advisory panel won’t be rolling ahead. The White House pulled the plug on the council, acknowledging that proposed members would likely come under pressure to distance themselves from the president. [Wall Street Journal]
But the tech industry hasn’t totally abandoned Trump. Many remember seeing the heads of Apple, Microsoft and Amazon sitting beside Trump at the first meeting of the American Technology Council. Those tech titans won’t be leaving the council since they were technically never members. But they’re growing increasingly wary. [Recode]
The Uber CEO’s legal trouble is getting personal. Firing back against an investor lawsuit, Travis Kalanick said the fraud accusations are meant to exploit him while he mourns the death of his mother, who was killed in a boating accident that also seriously injured Kalanick’s father. [Axios]
So long “Operation Choke Point.” Attorney General Jeff Sessions’ Justice Department has cut the cord on the controversial program, which was meant to discourage banks from doing business with companies such as payday lenders and gun retailers. [Politico]
AT&T and Time Warner are closing in on their blockbuster merger deal, which Trump criticized as a presidential candidate. The two companies are discussing merger conditions with the Justice Department, a sign the deal has moved into an advanced state. [Wall Street Journal]
