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