How New Executive Orders May Affect Consumer Credit

Welcome to the ConsumerDirect weekly newsletter! Every week, we highlight compelling consumer insights to help you stay up to date on industry trends directly affecting your business decisions. Don’t miss out on important news by subscribing today.???

TikTok's Uncertain Future in the U.S.

Many of us are holding our breath. TikTok is facing significant challenges in the U.S., primarily due to political tensions and national security concerns.

Despite efforts to address these issues, including partnering with Oracle to manage U.S. user data, the app has been removed from Apple and Google's app stores, making it unavailable for new downloads or updates. For businesses that rely on TikTok for marketing and engagement, this is causing extreme uncertainty. Have you expanded your marketing channels?

Americans' Rising Credit Card Balances

Recent reports indicate that Americans are increasingly carrying larger credit card balances, with a notable rise in the proportion of individuals making only minimum payments.

This trend is attributed to factors such as inflation and higher interest rates, which are impacting consumer spending and financial stability. Business owners should be aware of these shifts, as they may affect consumer purchasing behavior and creditworthiness.

Potential Delays in Financial Regulations

An executive order issued by President Trump has frozen several consumer finance regulations finalized during the previous administration.

This includes rules to remove medical debt from credit reports and capping bank overdraft fees at $5. The delay introduces uncertainty for businesses in the financial sector, as these regulations could significantly impact operations and compliance requirements.

Expansion of Private Credit and Talent Acquisition

The private credit sector is experiencing rapid growth, with significant financial firms increasing their investments in non-bank lending.

There is a rising demand for professionals skilled in restructuring, special situations, and portfolio operations. Businesses in the financial industry may consider exploring opportunities in private credit or acquiring specialized talent to navigate this evolving landscape.

Want to Be a ConsumerDirect Partner?

As a ConsumerDirect partner, you can offer your consumers our patented credit and privacy technologies while earning revenue effortlessly. No matter which product you choose to offer your clients, you always have the support of our world-class U.S.-based team of representatives every step of the way. Reach out directly at the form below ?? or visit our?website to learn about our partnership programs and find the one that is right for you.