Speaker Johnson, Payday Predators, and Pumpkin Spiced Debt

Plus, big refunds for defrauded consumers

Photo by That's Her Business on Unsplash

As Louisiana Congressman Mike Johnson is now in the public eye in his role as House Speaker, his record is coming under scrutiny.

There’s at least some reason to believe consumers should be concerned, as it seems Johnson is a friend of payday predators.

Accountable.US notes:

Rep. Mike Johnson Signed On To A Republican Amicus Brief Supporting the Predatory Lending Industry’s Lawsuit Challenging The Constitutionality Of The CFPB's Funding Structure

The organization says:

Accountable.US executive director Tony Carrk said, “Speaker Johnson publicly aligned himself with predatory lenders and debt collectors over lowering costs for consumers.”

It’s not clear this is much of a change from the previous GOP House leadership but it does make clear that Johnson has been more than just a bystander - he’s been actively involved in policy action that undermines key consumer protections. And when asked to choose sides, he lined up with the payday lending industry.

“I’ll Take Extra Whipped Cream and Triple-Digit Interest Rates with that Latte”

Do you want a little more debt the next time you go for coffee?

Probably not.

But that hasn’t stopped the Dave App from encouraging customers to take a cash advance for their next pumpkin spice latte:

In a recent pumpkin-themed email, Dave notes that taking an advance of up to $500 “can help with heating bills, coffee run, and everything in between.”

Defrauded Customers of Brigit, Vonage to Get Refunds

Signing up for a free trial only to later find it is almost impossible to cancel is frustrating.

In cases involving phone service Vonage and app-based loan provider Brigit, the tactics were also illegal.

The companies made it easy to sign up but impossible to cancel.

More on Vonage:

The Federal Trade Commission (FTC) has announced it is providing $100 million in refunds to customers of internet phone service provider Vonage.

The refunds will be paid to 389,106 consumers who were illegally charged by Vonage after attempting to cancel their service.

More on Brigit:

Personal finance app Brigit will pay $18 million in refunds to consumers as a result of a settlement with the Federal Trade Commission (FTC).

The FTC determined that Brigit deceived consumers by promising cash advances of up to $250 and then locking them into a subscription service that they couldn't cancel.