Consumer Finance Law Blog

Consumer Finance Law Blog

Developments and Analysis of Consumer Financial Services Laws, Rules, and Regulations

Category Archives: Credit Cards

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California’s Song-Beverly Credit Card Act: The Past, Present, and Future

Posted in Class Action, Credit Cards, Privacy, Song-Beverly Credit Card Act
Last week the BNA Privacy & Security Law Report published an article discussing in detail California’s Song-Beverly Credit Card Act (the “Act”). The aim of the article is to provide those persons and businesses that regularly engage in credit card transactions in California, most notably retail merchants, with a meaningful primer on some critical current and … Continue Reading

Financial Reform Negotiations Conclude

Posted in Consumer Financial Protection, Credit Cards, Fair Lending, Federal Reserve, Gift Cards, Legislative Developments
After working through the night, the Congressional conference committee tasked with negotiating a final financial reform bill voted 27-16 to approve the bill and send it back to each chamber for a final vote on the conference report. Recaps of the long day and night of negotiations and the final bill are available from Poltico, … Continue Reading

Appellant Attempts to Re-litigate Issue of Whether Retailers that Collect Customer Zip Codes During Credit Card Transactions Violate California’s Song Beverly Credit Card Act

Posted in Class Action, Credit Cards, Privacy, Song-Beverly Credit Card Act
In a previous post, we noted that the California Supreme Court in Pineda v. Williams-Sonoma Stores, Inc., granted a petition to review the issue of whether a retailer violates California’s Song-Beverly Credit Card Act if, in connection with a credit card transaction, it records a customer’s zip code for the purpose of later using it … Continue Reading

REMINDER: New Credit Card Regulations Take Effect Today; Gift and Debit Card Rules to Follow

Posted in Credit Cards, Gift Cards, Legislative Developments, Regulatory Developments
Major provisions of a new law related to credit and gift cards take effect today. The Credit CARD Act, which was signed by President Obama in May 2009, marked the culmination of several legislative efforts to reform certain practices of card issuers. The law provisions related to credit cards, discussed in this Kelley Drye client advisory, … Continue Reading

Merchants Beware: Protect Your Customers and Company from Credit Card “Skimming”

Posted in Credit Cards, Data Security, Privacy
The current economic climate has had many consequences, including an apparent increase in economic crimes such as credit card fraud. In recent months, numerous credit card scams involving restaurant chains have been reported. For example, the Washington Examiner reported on March 29 that wait staff at several high-end restaurants in Washington, DC, including M&S Grill, … Continue Reading

The End of the Arbitration Clause?

Posted in Class Action, Credit Cards, Legislative Developments
In order to avoid the substantial risks of class action litigation, many financial service providers – both traditional and non traditional – require that customer agreements contain an arbitration clause and a waiver of the customer’s right to bring a class action. However, recent court decisions and pending legislation suggest that certain types of these … Continue Reading

Use Of Customer Information For Data Mining May Be A Violation Of California Constitutional Right To Privacy

Posted in Credit Cards, Privacy, Song-Beverly Credit Card Act
If you or your company have a loyalty program or collect customer information in any form, and reverse data mine for additional customer information, you face the risk of being sued in California for a violation of the California Constitutional right to privacy. Recently, in Watkins v. Autozone Parts, Inc., No. 08-cv-01509-H, 2008 WL 5132092 (S.D. … Continue Reading

Congress Moves to Supplement Fed on Credit Cards

Posted in Credit Cards, Legislative Developments
In yet another reminder to credit card providers that they need to continue monitoring government attempts to legislate and regulate credit card products, services and policies, two pieces of credit card legislation have been introduced that could significantly impact your business. The legislation follows recent action by the Federal Reserve Board, which on December 18, … Continue Reading

Welcome to the Consumer Financial Services Blog

Posted in Credit Cards, Data Security, Fair and Accurate Credit Transactions Act (FACTA), Fair Credit Reporting Act (FCRA), Fair Lending, Insurance Coverage & Recovery, Legislative Developments, Merchant Billing & Payment
Which among the following businesses are potentially subject to consumer financial services laws, rules, and regulations? A. a retail clothing chain B. a bank or mortgage company C. an internet retailer D. a fast food franchisor E. all of the above If you answered E, “All of the above,” you are CORRECT. However, many companies do not … Continue Reading