Consumer Finance Law Blog

Consumer Finance Law Blog

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

Category Archives: Legislative Developments

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Search for CFPB Director Continues

Posted in Consumer Financial Protection, Legislative Developments, Regulatory Developments
In recent blog entries we have discussed the role being played by Elizabeth Warren in standing up the Consumer Financial Protection Bureau, including efforts to identify a Director for the newly-formed Bureau.  Those efforts have continued recently as Ms. Warren has been meeting with various State Attorneys General about the Bureau. Businessweek reported last week … Continue Reading

UPDATE: New Gift Card Rules To Take Effect on August 22, 2010 and Disclosure Requirements Will Now Take Effect on January 31, 2011

Posted in Federal Reserve, Gift Cards, Legislative Developments, Regulatory Developments
This is an update to an earlier post regarding the Federal Reserve Board’s final rules implementing the gift card provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (“CARD Act”). On July 27, 2010, H.R. 5502 was signed into law, extending the effective date of disclosure requirements under the CARD Act from … Continue Reading

The Second Circuit Continues Judicial Trend Towards Limiting Arbitrations

Posted in Consumer Financial Protection, Legislative Developments, Regulatory Developments
Recent posts on this blog have discussed questions as to the continued viability of arbitration clauses that require consumer agreements to contain an arbitration clause and a waiver of the customer’s right to bring a class action. Indeed, the United States Supreme Court is to decide in the upcoming term whether agreements barring class-wide arbitration can … Continue Reading

Financial Reform Debate Far From Over

Posted in Consumer Financial Protection, Federal Reserve, Legislative Developments, Regulatory Developments
President Obama will soon sign the final Wall Street Reform and Consumer Protection Act, which the Senate passed last week. However, in many ways, the battle over financial reform has just begun. While the law makes broad and comprehensive changes to the nation’s financial system regulatory structure, many more details will be added in the months … 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

Congress Moves Closer to Final Financial Reform Bill

Posted in Consumer Financial Protection, Legislative Developments
A conference committee comprised of members from both chambers of Congress has been meeting for the past two weeks to address differences between the House and Senate versions of financial reform legislation, with the Senate bill serving as the base text. Negotiators are trying to wrap up deliberations today in hopes of passing a final … Continue Reading

Minnesota Enacts Mortgage Licensing Law

Posted in Legislative Developments, Regulatory Developments, Subprime
On May 15, 2010, the Governor of Minnesota signed into law the Minnesota S.A.F.E. Mortgage Licensing Act of 2010 (Minnesota S.A.F.E. Act), which requires that mortgage loan originators be licensed by July 31, 2010, the act’s effective date. In passing the law, Minnesota joins the other 49 states and the District of Columbia in enacting legislation … Continue Reading

Will Congress Kill Mandatory Arbitration In Consumer Finance Transactions?

Posted in Consumer Financial Protection, Legislative Developments, Regulatory Developments
In 2007, Congress introduced legislation, entitled the Arbitration Fairness Act of 2007, to amend the Federal Arbitration Act (“FAA”) to render unenforceable predispute arbitration provisions in, among other things, agreements concerning consumer transactions. The legislation permitted parties to consumer transactions to agree to arbitrate disputes but only after the dispute arose and required courts to decide … Continue Reading

New FACTA Rules Take Effect on July 1, 2010

Posted in Fair and Accurate Credit Transactions Act (FACTA), Fair Credit Reporting Act (FCRA), Legislative Developments
Businesses have until July 1, 2010 to comply with the new rules and guidelines under the Fair and Accurate Credit Transactions Act (“FACTA”), which amended the Fair Credit Reporting Act (“FCRA”), adopted by the Federal Trade Commission nearly a year ago relating to information provided to credit reporting agencies. Many know FACTA as the statute that … Continue Reading

Senate Bill May Make It More Difficult for Large Banks to Satisfy Capital Reserve Requirements

Posted in Federal Reserve, Legislative Developments
The Restoring American Financial Stability Act passed by the Senate on May 20 (discussed in an earlier post ) includes an amendment authored by Sen. Susan Collins (R-Maine), which would toughen the risk-and size-based capital standards facing financial institutions. Sen. Collins has stated that smaller financial institutions should no longer be subject to more lenient … Continue Reading

RETAILERS: New Colorado Consumer Protection Law Requires Redemption of Gift Cards with a Cash Value of $5 or Less

Posted in Consumer Financial Protection, Gift Cards, Legislative Developments
On April 29, 2010, Colorado Governor Bill Ritter signed a consumer protection bill which requires gift card issuers to redeem the card, upon request, if the remaining value is $5 or less. In addition, it bans retailers, restaurants and others from selling gift cards that have any type of fee, including a service fee, a … Continue Reading

The Federal Reserve Board’s Final Gift Card Rules for the CARD Act

Posted in Federal Reserve, Gift Cards, Legislative Developments, Regulatory Developments
Recently, the Federal Reserve Board announced the final rules that amend Regulation E to implement the gift card provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (“CARD Act”). The rules restrict fees and expiration dates on various types of gift certificates and cards, and require sellers and issuers to make specific disclosures. These … Continue Reading

Senate to Consider ATM Fee Cap Among Proposed Amendments to Financial Reform Bill

Posted in Consumer Financial Protection, Legislative Developments, Regulatory Developments
The Senate is expected to soon consider placing a fifty-cent per transaction cap on ATM fees, as an amendment to the financial reform bill. The proposed amendment, introduced last week by Senator Tom Harkin (D-Iowa) and co-sponsored by Senators Charles Schumer (D-New York) and Bernie Sanders (I-Vermont), is an effort to regulate ATM fees by “ensur[ing] … Continue Reading

Senate Begins Debate on Financial Reform Bill

Posted in Consumer Financial Protection, Legislative Developments
The Senate, after spending last week engaged in procedural battles, will enter full scale debate this week on that chamber’s version of a financial reform package. This morning Congress Daily provided a brief preview of the debate. Several amendments affecting consumer protection are expected, including relating to the proposed new bureau to oversee consumer finance … Continue Reading

New Senate Financial Reform Bill Released

Posted in Consumer Financial Protection, Legislative Developments
Today, Senate Banking Committee Chairman Chris Dodd (D-CT) released a revised financial regulatory reform bill, which would create the Bureau of Consumer Financial Protection. The Bureau would be housed in the Federal Reserve, however, it would have a separate budget and an autonomous governance structure. Consumer protection has been a major sticking point since the … 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

State Regulators’ Powers Over National Banks Reaffirmed by U.S. Supreme Court

Posted in Fair Lending, Legislative Developments, Regulatory Developments
Recently, the United States Supreme Court, in its decision styled Andrew M. Cuomo v. The Clearing House Association, L.L.C., No. 08-453, reaffirmed that federal banking regulations do not pre-empt states from enforcing their own fair-lending laws against national banks. This dispute arose following the New York State Attorney General’s attempt to investigate several banks’ residential … 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

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