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Andrea K. Mitchell quoted in American Banker article, “Will Congress move to outlaw ‘live’ checks?”

American Banker

Andrea K. Mitchell

Andrea K. Mitchell was quoted on December 27, 2018 in an American Banker article, “Will Congress move to outlaw ‘live’ checks?” which discussed the increase of unsolicited, live checks received in the mail by consumers that commonly include high-interest rates and the regulatory concerns for banks. The article stated, “Consumer advocates argue that many consumers who receive and cash live checks don’t always know what they are getting into. Live checks are not new, but installment lenders have accelerated their use of them in recent years amid what they view as heightened consumer demand. Many banks have largely retreated from small-dollar lending due to heightened regulatory scrutiny, and installment lenders and other nonbank lenders, including many fintechs, have stepped in to fill the void, industry experts say.”

“The nonbank lenders who underwrite live checks, and the banks that issue and clear them, are well aware of the regulatory trouble they would face if they engage in deceptive practices with live checks.” She added, “Banks can still be found liable under the same theories that gave rise to Operation Choke Point. Their exposure is still there.”

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