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Consumer Finance Law Blog

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

Category Archives: Regulatory Developments

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CFPB Proposes Rule on Prepaid Products to Extend Certain Credit Requirements and Mandate Disclosures

Posted in Consumer Financial Protection, Data Security, Regulatory Developments
The Consumer Financial Protection Bureau released last week a proposed rule that would impose an array of new requirements on prepaid accounts. The proposed new definition of “prepaid account” would include general purpose reloadable cards, electronic or mobile accounts that can store funds such as PayPal accounts, payroll cards, and certain government benefit cards, but … Continue Reading

CFPB Releases Advanced Notice of Proposed Rulemaking on Debt Collection Practices

Posted in Consumer Financial Protection, Fair Debt Collection Practices Act (FDCPA), Regulatory Developments
On Wednesday November 6, the CFPB released an Advanced Notice of Proposed Rulemaking (ANPR) seeking comment on debt collection practices and noting that the Bureau is considering proposing rules regarding debt collection. The CFPB simultaneously announced that it was adding approximately 5,000 consumer debt collection complaints to its public Consumer Complaint Database. According to the … Continue Reading

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

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

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

FTC Releases Annual Report

Posted in Consumer Financial Protection, Fair Credit Reporting Act (FCRA), Regulatory Developments
Recently, Federal Trade Commission Chairman Jon Leibowitz released the FTC’s 2010 Annual Report, which focused largely on the FTC’s endeavors to defend financially distressed consumers and to spur competition during these tough economic times. For example, the FTC, among other things, emphasized that while the past year’s economic downturn prompted companies to offer new services … 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

Federal Agencies Issue FAQs on FACTA Red Flag Compliance

Posted in Data Security, Fair and Accurate Credit Transactions Act (FACTA), Regulatory Developments
Last week , the Federal Trade Commission, jointly with other federal agencies that regulate financial institutions, released "frequently asked questions" designed to provide additional assistance to companies required to comply with new identity theft rules pursuant to the Fair and Accurate Credit Transactions Act ("FACTA") .  Those rules were issued in November 2007. Under the … Continue Reading