THE ISAIAH FACTOR
UNCENSORED. AND WELCOME BACK
TO THE SECOND HALF HOUR OF
THE FACTOR ON CENSORED. NOW
THERE'S TALK ABOUT
DISBANDING THE BUREAU THAT'S
IN CHARGE OF POLICING THE
FINANCIAL INDUSTRY.
SPECIFICALLY BANKS OVER
CONSUMERS NOW, MY NEXT
GUEST, AND I TALKED ABOUT
WHAT IT WILL MEAN FOR
CONSUMER PROTECTION IF
COMPANIES ARE NOT REGULATED.
AND JOINING US HERE ON THE
FACTOR ON SENSOR TONIGHT WE
HAVE WITH US. MONICA ETON,
FOUNDER OF CHARGEBACKS 911.
SO MONICA, THERE'S A LOT OF
TALK ABOUT THE C F P. B FOR
THE AVERAGE VIEWER OF THEIR
WHO'S NOT FAMILIAR WITH THIS
ENTITY. EXACTLY WHAT IS IT?
SO THE C F P B STANDS FOR
THE CONSUMER FINANCIAL
PROTECTION BUREAU AND THE
EASIEST WAY TO THINK ABOUT
WHAT THIS ORGANIZATION DOES
IS. IT'S PRETTY MUCH LIKE
THE FTC ONLY IT REGULATES
BANKS. SO WE'RE THE FTC
REGULATES BUSINESSES TO MAKE
SURE THAT BUSINESSES ARE NOT
SCAMMING CONSUMERS AND
THEY'RE PRACTICING FAIR. THE
C F P B IS IN CHARGE OF
MANAGING BANKS TO MAKE SURE
THAT CONSUMERS ALSO AREN'T
GETTING CHARGED UNFAIR
INTEREST RATES. THEY HAVE
EVERYTHING DISCLOSED.
THEY'RE NOT GETTING
EXCESSIVE FEES NOW WITH THIS
ENTITY OR THIS AGENCY'S
FUTURE. BEING IN DOUBT, IS
THAT BAD NEWS FOR THE
CONSUMER OUT THERE ARE GOOD
NEWS. I THINK IT'S MIXED. UM
AND IN MANY WAYS, IT'S VERY
GOOD NEWS AND I'LL TELL YOU
WHY. BECAUSE I THINK YOU
KNOW, EVERYBODY WOULD AGREE
THAT YOU CAN HAVE A
SITUATION WHERE THINGS CAN
GET OVER REGULATED AND IT'S
ALWAYS WITH THE BEST
INTERESTS. BUT WHAT'S
HAPPENED IN THE INDUSTRY,
ESPECIALLY WITH THE GROWTH
OF E COMMERCE. AND ALL OF
THIS TECHNOLOGY IS YOU KNOW
WE'VE NEEDED TO CHANGE AND
WE'VE NEEDED TO INNOVATE AND
THESE BANKS NEED TO INNOVATE
AS WELL. CONSUMERS HAVE
DRIVEN WITH THEIR DEMANDS
FOR, YOU KNOW, REMOVING
FRICTION, MAKING THINGS EASY
HAVEN'T BEEN ABLE TO KEEP
PACE WITH THE INNOVATION AND
TECHNOLOGY REALLY REQUIRED
TO CREATE A FAIR
ENVIRONMENT. SO IN MANY WAYS
, YOU KNOW, HAVING A
SITUATION WHERE THAT'S NOT
REGULATED, IS GOING TO OPEN
THE DOOR TO MUCH NEEDED
INNOVATION. AND
STATISTICALLY, YOU KNOW, WE
SEE BANKS HAVE CONSUMERS AS
CUSTOMERS. THEY HAVE CARDS
THEY HAVE, YOU KNOW, BANK
ACCOUNTS AND AT THE END OF
THE DAY, THE MANTRA OF THE
CUSTOMER'S ALWAYS RIGHT IS
STILL THE FOUNDING TENANT OF
HOW OUR ECONOMY WORKS TODAY.
WE WANT CUSTOMER EXPERIENCES
TO BE GOOD. WE WANT THAT
LOYALTY. SO GIVING BANKS THE
FREEDOM TO MAKE DECISIONS IN
THE BEST INTERESTS OF
MAINTAINING CARDHOLDER.
LOYALTY OR CONSUMER LOYALTY
IS ACTUALLY A GOOD THING.
NOW, ON THE FLIP SIDE,
SOMETIMES YOU CAN HAVE A
GOOD THING THAT COULD END UP
CREATING SOME NEGATIVE
CONSEQUENCES. SO FOR EXAMPLE
, YOU COULD HAVE MAYBE AS AS
A BANK, THEY DECIDED TO
CREATE A CONCIERGE SERVICE.
UM AND THIS COULD BE YOU
KNOW, CONSUMERS EFFECTIVE.
YOU KNOW, WHENEVER NOW NOW,
IF THE CONSUMER HAS A CLAIM
OR DISPUTE ON A GIVEN
TRANSACTION INSTEAD OF GOING
THROUGH A RIGOROUS PROCESS
IN ORDER TO DETERMINE
WHETHER OR NOT THAT TURNS
INTO A CHARGEBACK THAT
CREATES A FINE AND A FEE FOR
THE MERCHANT. OR FOR THE
RETAILER. MAYBE THE BANK HAS
A NO QUESTIONS ASKED POLICY
AND FOR A MONTHLY FEE
BECAUSE THEY'RE NOT
REGULATED ON FEES FOR A
MONTHLY FEET. THE CONSUMER
COULD SUBSCRIBE TO A SERVICE
AND THEY COULD PUT FORTH
WHATEVER CLAIM THEY WANT.
NOW THAT'S GOOD FOR THE
CONSUMER. THIS IS WHAT THE
CONSUMER WANTS. THEY WANT A
ONE STOP SHOP FOR THEIR BANK
TO RESOLVE ANY TRANSACTION.
BUT IT HAS A CONSEQUENCE ON
THE MERCHANT. BECAUSE NOW
THE RETAILER THE MERCHANT,
MAYBE RECEIVING A BUNCH OF
CLAIMS THAT ARE COMPLETELY
REALLY CHECKING THESE SO
THAT CREATES, YOU KNOW MORE
FRICTION. IT CREATES MORE
COSTS, AND IT'S AND THAT'S A
LITTLE BIT DIFFICULT TO
MANAGE. THERE'S ALWAYS A
FEAR, THOUGH, MONICA WHEN IT
COMES TO THE PUBLIC WHEN YOU
HEAR SOMETHING ABOUT THAT
HAS BEEN REGULATED IS NOW
DEAD. DEREGULATED SO FOR THE
CONSUMERS OUT THERE WHO SAY
WELL, WHO'S GOING TO PROTECT
US? FROM THESE BANKS, WHO
MAY GIVE US HIGH INTEREST
RATES OR MAY GIVE US
EXCESSIVE FEES. WHAT WOULD
YOU TELL THEM? WELL I THINK
I THINK THAT THE ECONOMY HAS
HAS GROWN TO A POINT ON I
MEAN, LET'S LET'S LET'S LOOK
AT HOW THE MARKET IS TODAY.
MARGINS ARE COLLAPSING, AND
THIS IS AFFECTING EVERY
SINGLE BUSINESS. SO, UM, IN
ONE WAY WE'VE KIND OF
CONSUMERS ARE PROTECTED BY
THAT STATISTIC BECAUSE IT'S
A IT'S A VERY COMPETITIVE
ENVIRONMENT. AND SO BANKS
ARE IN FIERCE COMPETITION TO
BE ABLE TO ENSURE THAT THEIR
CONSUMERS ARE LOYAL. SO YOU
KNOW YOU YOU CAN'T TURN AWAY
A CONSUMER LOSING ONE
CUSTOMER MATTERS. UM AND SO
I DO THINK YOU KNOW IT
CUSTOMERS TODAY. ARE MORE
VALUABLE AND THAT LOYALTY
COUNTS MORE BECAUSE IT'S
MORE DIFFICULT TO ACQUIRE
THAT CUSTOMER AND WITH
MARGINS BEING THIN. BANKS
MANY RISKS. SO IF YOU UPSET
CUSTOMER THAT HAS A TRICKLE
DOWN EFFECT, AND YOU'RE
GONNA UPSET EVEN MORE
CUSTOMERS AND WITH MARGINS
SO THIN AND THE COMPETITION
SO FIERCE. THAT AND WE HAVE
CONSOLIDATION GOING ON. I
MEAN, THE MARKET IS, YOU
KNOW, WE DEFINITELY HAVE A
DOWNTURN, PLUS THE FACT THAT
THERE IS SOME FINANCIAL
INSECURITY ON THE HORIZON.
UM I THINK WE'LL SEE. YOU
KNOW, BANKS ARE GOING TO BE
LISTENING TO WHAT THEIR
CUSTOMERS WANT, AND MAYBE
ARE BEHAVIOR IS ACTUALLY
GOING TO DOVETAIL INTO
WHAT'S BEST FOR THE INDUSTRY
BECAUSE ULTIMATELY,
RETAILERS DON'T MAKE ANY
ANY MONEY IF WE HAVE UPSET
CUSTOMERS. CUSTOMERS TODAY
CONSUMERS. THEY WANT
SECURITY, THEN THEY WANTED
TO BE FAST, RIGHT? WE WANT
IT TO BE BETTER, AND WE ALSO
WANT TRANSPARENCY. SO ALL OF
THESE REQUIREMENTS REALLY,
TO GET ALL FOUR OF THOSE
BETTER TECHNOLOGY AND WE
NEED TO. WE NEED TO TAKE
SOME OF THE SHACKLES OFF OF
THESE BANKS AND ALLOW THEM
TO REALLY, YOU KNOW,
INNOVATE. AND BE ABLE TO BE
FREE TO DO WHAT MAKES THE
MOST SENSE FOR THE INDUSTRY.
AND I DO THINK WE'RE AT A
POINT WHERE SPECIFICALLY
WITH CHARGEBACKS AND WITH
THAT AFFECTS EVERY SINGLE
STAKEHOLDER. IT USED TO BE
JUST A PAIN POINT. YOU KNOW
THAT MERCHANTS FOUR OR
CHANGED. AND YOU KNOW, I
THINK THAT IT'S IT CAN. IT'S
DEFINITELY UH, A FACT NOW.
THE SAME ENEMY WHEN IT COMES
TO FRAUD AND FRICTION. AND
SO I THINK I THINK RELEASING
, YOU KNOW, CREATING AN
ENVIRONMENT WHERE THERE CAN
BE INNOVATION. AND PEOPLE
CAN THINK OUTSIDE OF THE
BOX. UM WE MAY FIND THAT
THERE IS ENOUGH. INTERESTS
FROM ALL SIDES OF THE
EQUATION TO HELP MITIGATE
SOME OF THE RISK THAT MAY
HAVE BEEN THERE, UM, WITHOUT
A REGULATOR, AND AFTER THE