The Consumer Financial Protection Bureau (CFPB) has issued a Request for Information in conjunction with an inquiry into practices and financial products that may leave employees indebted to employers.
“The labor market operates at its best when workers are able to move freely within it,” CFPB Director Rohit Chopra said. “Our inquiry is about studying the effects of an emerging form of debt that may have the potential to trap employees in place.”
The CFPB is seeking data regarding worker experiences with emerging practices and financial products referred to as employer-driven debt.
The agency also seeks to know whether consumers have a meaningful choice in accepting employer-driven debt products, officials noted, while garnering insight into the products’ terms and conditions and whether they might impede someone from seeking a job with better wages.
The CFPB’s focus includes workers’ understanding of employer-driven debt arrangements; how and whether default on employer-driven debt could threaten continued or future employment; and hearing from the public about their experiences with employer-driven debt, including prevalence, pricing, and other terms of the obligations, disclosures, dispute resolution, and the servicing and collection of these debts.
The deadline to submit comments is Sept. 7, 2022.