Developments and Commentary

DOD sealRevised Military Lending Act Rules Impose New Compliance Obligations on a Wide Variety of Creditors

The Department of Defense (DOD) recently finalized amendments to its Military Lending Act (MLA) regulations that impose new compliance obligations on a wide variety of creditors, including issuers of credit cards and installment loans. The rule generally requires creditors to determine whether a consumer credit applicant is a member of ...

EUROThe Fourth European Union Anti-Money Laundering Directive and Its Effects on Financial Institutions Operating in the EU

The Fourth European Union Anti-Money Laundering Directive (Fourth AML Directive), approved by the European Parliament on May 20, 2015, went into effect on June 25, 2015, repealing the 2005 Third AML Directive. Given the evolving nature of the money laundering and terrorist financing typologies, as well as the decade-old Third ...

BankAug6Treasury Department RFI on Online Marketplace Lending Signals Potential Shift Towards Regulation of Small Business Loans

The Treasury Department recently issued a request for information to explore various aspects of “online marketplace lending.” The RFI seeks comment on a broad array of online financial services companies that lend not only to consumers but also to small businesses. When considering the RFI in connection with other recent ...

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 ...

Resource Updates

OFAC Warns Of Crimea Payments Processing Sanctions Risks

DWT Payments team member Burt Braverman was quoted in a recent article in Payments Compliance entitled "OFAC Warns Of Crimea Payments Processing Sanctions Risks." To learn more about the issue and read the article in its entirety, click here.  

psa_v2Recent Actions Added To UDAAP Database

The CFPB has issued new enforcement actions that include allegations of unfair, deceptive, or abusive acts and practices (UDAAP) in connection with consumer financial products. We’ve updated our UDAAP Database with the most recent actions to facilitate understanding of the themes and patterns in UDAAP enforcement actions that have been ...

UkraineCrimeaOFAC Warns Financial and International Trade Sectors on Evasion of Crimean Sanctions

On Dec. 19, 2014, President Obama issued Executive Order 13685, "Blocking Property of Certain Persons and Prohibiting Certain Transactions With Respect to the Crimea Region of Ukraine," to impose sanctions relating to the Russian occupation of the Crimean region of Ukraine (“Crimea”). E.O. 13685 prohibits most direct and indirect transactions ...

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 ...