Developments and Commentary

circseal2Increased Risk for Buyers of Credit Card Loans

Third party debt buyers may face increased threat of state-law class action lawsuits after a recent Second Circuit ruling prohibiting such debt buyers from invoking federal preemption defenses under the National Bank Act to defeat state-law usury claims. In Madden v. Midland Funding, LLC, 786 F.3d 246 (2d Cir. 2015), the ...

charity_cardsCo-branding Credit Cards with Charities: Commercial Co-Venture Issues

A cobranded credit card program in which the “merchant” is in fact a charity may be subject to special rules relating to the regulation of “commercial co-ventures” (also known as “cause-related marketing”).  Issuers and charities contemplating or operating such programs should keep these rules in mind to avoid regulatory problems. Although ...

floating dollar signsTreasury Department Publishes National Money Laundering Risk Assessment and National Terrorist Financing Risk Assessment

On June 12, 2015, Treasury Department issued its National Money Laundering Risk Assessment (NMLRA) and National Terrorist Financing Risk Assessment (NTFRA).  This is the Department’s first NMLRA release in a decade and its first ever NTFRA release.  The assessments were prepared by the Treasury Department’s Office of Terrorist Financing and ...

health careUpcoming HIPAA Audits May Target Financial Institutions—Here’s How to Prepare

Much like a tornado watch, the conditions appear to be right for a coming storm: the upcoming Phase 2 HIPAA audits. The Department of Health and Human Services Office for Civil Rights (OCR) has begun verifying contact information of potential audit targets. This serves as a warning that OCR will ...

NYRev611Plus ça change…NYDFS releases final BitLicense regulations

The New York State Department of Financial Services (NYDFS) released final BitLicense regulations on June 3, 2015, almost eleven months after the initial BitLicense proposal was issued.  The initial proposal went through two rounds of public comment and revision; however industry participants and commenters were largely disappointed by the limited ...

Resource Updates

CFPBFeb10v2CFPB Inserts Consumer Protection Issues into Faster Payment System Developments

The Consumer Financial Protection Bureau recently issued a series of Consumer Protection Principles to be considered as new, faster payment systems are being developed. The Rapidly Changing Regulatory Landscape for Faster Payments A number of other government bodies and industry groups have been rapidly working to implement and impact faster payment systems: ...

The CFPB and the Business of Insurance

DWT payments team member Adam Maarec recently co-authored (with James C. Sivon) an article entitled "The CFPB and the Business of Insurance: An Analysis of the Scope of CFPB’s Authority Over Insurance Sales" in the Quarterly Report of the Conference on Consumer Finance Law. In 2014, the Bureau of Consumer Financial Protection ...

discussion paperDiscussion Paper: Visa Payment Panel Study

PLA today posts “Trends and Preferences in Consumer Payments: Updates from the Visa Payment Panel Study,” a Philadelphia Fed discussion paper.  The paper presents useful data about, among other things, the importance of rewards programs to the marketing of general purpose cards, as well as changes in the use of ...

“Predominant economic interest” — CashCall, Inc. v. Morrisey

PLA today posts (alongside the already-posted public WebBank deals) a petition for certiorari filed in the U.S. Supreme Court a few months back in the CashCall rent-a-charter / true lender litigation. In this case, West Virginia’s Attorney General successfully alleged that CashCall was the “de facto lender” based on its “predominant ...

CaptureFuture Tense: Contemplating the Impending Transition to Digital Wallets and Mobile Prepaid Platforms over the Next 5 Years

On June 11, DWT payments partner Andy Lorentz joined Kevin Boglarsky (Director, Payment Products at Discover), James Hutchison (SVP Emerging Commerce Products, FIS), and Brian Knight (Associate Director, The Milken Institute) at the NBCPA’s Power of Prepaid conference in Washington, DC, to share insights on the future of digital payments ...