From The Washington Post:
The Consumer Financial Protection Bureau has ordered a leading prison banker to pay $6 million for siphoning off taxpayer-funded benefits and forcing recently incarcerated individuals to pay hidden fees, according to an agency announcement posted Tuesday afternoon.
JPay, a Florida-based company owned by the private equity firm Platinum Equity Partners, is a dominant provider of financial services to prisons, jails and inmates. The company provides former inmates with debit cards as they leave prison. The cards typically contain money that was seized when the former inmates were locked up, earnings from prison labor, or state benefits designed to help them get back on their feet.
The CFPB concluded that JPay “engaged in unfair and abusive acts” by attaching fees to cards that people were required to receive as they left prison. The company also deceived consumers about the fees themselves, CFPB concluded. Continue reading >>>
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