The Green Sheet Online Edition
April 4, 2025 • 25:04:01
News Briefs
Senator raises concerns over X Money-Visa deal <- click to read full story
Senator Richard Blumenthal raised concerns about Visa's deal with X Money, the financial arm of Elon Musk's platform X. Blumenthal questioned Visa CEO Ryan McInerney about X's ability to protect consumers, and cited Musk's alleged efforts to weaken the Consumer Financial Protection Bureau through DOGE. Critics believe dismantling the CFPB benefits firms like X Money by sidestepping oversight.
Blumenthal warned of potential data misuse, noting concerns about bot activity promoting cryptocurrency scams. With key consumer protections under threat and lawsuits against fintechs withdrawn, lawmakers have been debating who will regulate nonbanks. Blumenthal joined Senator Elizabeth Warren in criticizing actions that weaken consumer safeguards, enabling big tech firms to bypass financial scrutiny that banks must endure, thereby gaining unfair advantages.
Bipartisan credit card bill would cap APRs at 10 percent <- click to read full story
Senators Bernie Sanders and Josh Hawley introduced a bipartisan bill to cap credit card APRs at 10 percent, citing rising debt and exorbitant interest rates harming working Americans. President Trump had previously promised this cap. Supporters argue that banks borrow at low federal rates yet charge consumers nearly 30 percent interest, trapping them in debt.
But credit industry groups, including the Electronic Transactions Association, oppose the measure, claiming it would reduce access to credit, particularly for subprime borrowers. They warn it could push consumers toward costlier, less regulated alternatives like payday loans. Data cited includes average household credit card debt of $21,000 and rising delinquency rates.
A new era of consumer financing at Walmart <- click to read full story
Walmart partnered with Klarna and its OnePay platform to offer buy now, pay later loans. Customers will be able to finance purchases online or in-store with installment options ranging from three to 36 months. Klarna replaced Affirm as Walmart's exclusive BNPL provider, marking a strategic shift amid Klarna's IPO push. OnePay, backed by Walmart and Ribbit Capital, is expanding its fintech offerings by integrating loans into Walmart's checkout systems.
The deal is expected to boost Klarna's valuation and reach, while offering consumers streamlined access to credit via the OnePay app. Klarna's CEO hailed it as a "game changer," while OnePay's CEO emphasized making fair credit more accessible. The collaboration reflects fierce fintech competition and growing demand for flexible payment solutions.
Consumers hammered by fraud losses <- click to read full story
U.S. consumers lost $12.5 billion to fraud in 2024, a 25 percent increase from 2023, according to the FTC. Experts believe the actual figure may be far higher, as many victims don't report fraud. Investment scams led with $5.7 billion in losses, followed by imposter scams. Business/job opportunity scams surged, with employment agency scams growing fivefold since 2020. Bank transfers and crypto payments platforms saw the most fraud-related losses. Check fraud alone accounted for $24 billion in losses.
The FTC, which issued $319 million in refunds in 2024, noted scammers often use email, phone and text to deceive. Suspicious activity reports tied to fraud have jumped 51.8 percent since 2020. Experts warned that AI is making scams more sophisticated.
CFPB no longer wants BNPL covered by Reg Z <- click to read full story
The CFPB plans to rescind its interpretive ruling that buy now, pay later providers are subject to Regulation Z, which governs consumer credit disclosures and protections. This shift comes after a lawsuit by the Financial Technology Association, representing BNPL firms like PayPal and Zip.
Under former Director Rohit Chopra, the CFPB asserted that BNPL digital accounts functioned like credit cards, requiring Reg Z compliance. However, with Chopra's dismissal under the Trump Administration and ongoing actions to scale back the CFPB, the agency signaled it would withdraw the rule. Critics argued the CFPB is being dismantled, jeopardizing consumer protections. A federal court temporarily blocked mass firings of agency staff. Originally created after the 2008 financial crisis, the CFPB also faces continued political opposition over its independence and funding model. 
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