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  • CFPB and NLRB to share info on employer-driven debt practices and illegal surveillance

    Federal Issues

    On March 7, the CFPB and the National Labor Relations Board (NLRB) entered into an information sharing agreement to create a formal partnership for addressing unlawful practices involving employer surveillance and employer driven debt. The agencies stressed in the joint announcement that their Memorandum of Understanding will help identify and end employer practices that cause workers to incur debt by forcing them to pay for employer-mandated training or equipment that they might not need, or that surveil workers and sell their personal data to financial institutions, insurers, and other employers. These actions, the agencies said, may violate the FCRA and other consumer financial protection laws. As previously covered by InfoBytes, last June the Bureau launched an inquiry into employer-driven debt practices. The request for information focused on debt obligations incurred by consumers in the context of an employment or independent contractor arrangement, and sought information on “prevalence, pricing and other terms of the obligations, disclosures, dispute resolution, and the servicing and collection of these debts.” 

    “Many workers discover that getting a job can mean piling up debt instead of making a living,” CFPB Director Rohit Chopra said in the announcement. “Information sharing with the [NLRB] will support our efforts to end debt traps that stop workers from leaving one job for another.” NLRB General Counsel Jennifer Abruzzo agreed, adding that as the “economy, industries and workplaces continue to change, we are excited to work with CFPB to strengthen our whole-of-government approach and ensure that employers obey the law and workers are able to fully and freely exercise their rights without interference or adverse consequences.”

    Federal Issues CFPB NLRB Consumer Protection MOUs Employer-Driven Debt Products FCRA Surveillance Consumer Finance

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