InfoBytes Blog
CFPB investigates employer-driven debt and the sale of workers’ personal data
On March 9, the CFPB published findings from a recent roundtable event where worker organizations and labor unions shared their members’ financial hardships and challenges. According to the Bureau’s blog post, more workers are reporting that they are responsible for paying for employer-mandated training and equipment, causing workers to owe significant debt to their employers or third-party debt collectors and making it difficult for them to change jobs. The Bureau stated it will continue to analyze information about employer-driven debt and employer/third-party collection efforts to best determine how to address consumer harm and any potential violations of federal consumer financial law, and will participate in the Truck Leasing Task Force with the Departments of Transportation and Labor to investigate predatory financial arrangements.
Organizations also reported concerns related to surveillance technology and the sale of personal data, including how information is being “compiled and used for decision-making that may impact workers’ financial well-being far beyond their current employers.” One participant explained that workers may not be aware that tools designed to track hours worked across different platforms also have the capability to track them outside of working hours and are selling access to their data to financial institutions, insurers, and other employers. The Bureau also heard from participants about data firms that are collecting and selling workers’ data that “may not be following the appropriate protocols for privacy and transparency.” The Bureau emphasized that it will “closely monitor and better understand this emerging market along with our federal partners and assess where provisions of the Fair Credit Reporting Act and other consumer protection laws may protect workers.”