Developments and Commentary

Security SystemConsumer Financial Data Aggregation & the Potential for Regulatory Intervention

Introduction A confluence of regulatory activity and policy debates seem to be laying the groundwork for future regulation of consumer financial data aggregation activities. The outcome of these activities could significantly affect how financial data may be shared by financial institutions, controlled by third-party data aggregators, and used by financial technology ...

Protection concept. Protect mechanism, system privacy.FRB Governor Indicates Data Aggregators Could Impact Bank Safety & Soundness as Part of the “Fintech Stack”

In a recent speech at the Northwestern Kellogg Public-Private Interface Conference, Federal Reserve Board Governor Lael Brainard indicated that the relationships between banks and data aggregators within the “fintech stack” may present safety and soundness concerns that warrant oversight by the FRB (and perhaps other prudential regulators). Governor Brainard’s address ...

bad+appleA “Bad Apples” Database for Banks? Not So Fast.

Overview Should banks, while guarding against rolling episodes of misconduct by bankers, have the ability to blackball employees from the banking industry?  A “bad apples” database of bank employees who have acted improperly in prior jobs would help ferret out potential problem employees before they are hired and able to do ...

OCC Issues Draft Fintech Supplement to OCC Licensing Manual

On March 15, 2017, the Office of the Comptroller of the Currency issued a “Draft Supplement” to the Comptroller’s Licensing Manual, entitled “Evaluating Charter Applications from Financial Technology Companies” (Supplement).  The OCC’s Supplement is designed to provide substantive standards and procedures for the OCC’s evaluation of an application by a ...

OCC Issues Third-Party Relationship Supplemental Examination Procedures

On January 24, 2017, the Office of the Comptroller of the Currency (the “OCC”) issued examination procedures to supplement its 2013 guidance Third-Party Relationships: Risk Management Guidance.  The examination procedures establish expanded procedures for OCC examiners to employ when assessing a national bank’s or federal savings association’s (collectively, “bank’s”) risk ...

Resource Updates

NYPAY Presentation - ImageThe OCC Fintech Charter: A New Model for Tech-Enabled Financial Services?

On February 21, DWT Payments team members Andy Lorentz and Tom Scanlon took part in a discussion organized by NYPAY that focused on the prospects of the OCC special purpose fintech charter. The questions discussed included, “Will the concept survive the many challenges it can be expected to attract, including from fellow ...

SoFi Settlement Provides Lessons for Lenders Marketing “Soft Pull” Preapprovals

DWT Payments team member Adam Maarec recently authored an article entitled “SoFi Settlement Provides Lessons for Lenders Marketing ‘Soft Pull’ Preapprovals” for the September/October 2016 issue of the FinTech Law Report. The full text of the article appears below (reprinted with permission from volume 19 of FinTech Law Report on Westlaw. © ...

capitolThe 2015 CARD Act Report

Following their prior post on the CARD Act Report, Payments team members Andrew Owens and Adam Maarec authored an article entitled “The 2015 CARD Act Report” for the November 2016 issue of The Review of Banking & Financial Services. The abstract for the article is as follows: The CFPB’s biennial report ...

Assessing the Utility of CARD Act Disclosures

PLA has for many years posted elite academic research questioning the utility of CARD Act disclosures.  For example, in 2013 we posted Regulating Consumer Financial Products: Evidence from Credit Cards by Sumit Agarwal from Georgetown University, Souphala Chomsisengphet from the Office of the Comptroller of the Currency, Neale Mahoney from the University of Chicago ...

Legal Developments Affecting Credit Card Steering Rules

PLA today posts a decision from the Second Circuit enforcing American Express’s contractual prohibition against steering (see United States v. American Express Company). Reversing a district  court opinion that barred these contractual terms for allegedly violating antitrust laws, the Second Circuit decision appears to allow Amex to prohibit merchants from: “offering ...