Payment Law Advisor Legal Commentary and Resources for the Payment Industry

Brian J. Hurh

Posts by Brian J. Hurh

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

Posted in Regulatory and Compliance

BankAug6The 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 regulatory activity, incl… Read the rest

An Overview of the CFPB’s Proposed Prepaid Account Rule

Posted in Regulatory and Compliance

(To view a printable PDF of this post, click here.) 

The CFPB’s proposed prepaid account rule was published in the Federal Register today, kicking off a 90-day comment period for the public to voice their support or objections to the Bureau’s proposed revisions to Regulation E and Regulation Z.

To help navigate the comprehensive 235-page rulema… Read the rest

CFPB Proposed Prepaid Account Rule

Posted in Deals and Technology, General

On November 13, 2014 the Consumer Financial Protection Bureau issued its long-awaited proposed rule on prepaid products. The rules would apply broadly to any “prepaid account,” whether in the form of a card, code or other device, capable of being loaded with funds that can be used at unaffiliated merchants, for peer-to-peer transfers, or for ATM with… Read the rest

CFPB Proposes Alternative Delivery Method for GLBA Privacy Notice

Posted in Regulatory and Compliance

The CFPB has proposed rules to afford financial institutions an alternative delivery method for annual privacy notices under the privacy provisions of GLBA and Regulation P (12 CFR part 1016).  This alternative delivery method would permit financial institutions (under limited circumstances) to post annual privacy notices on their websites in lieu … Read the rest

GAO Issues Report On Tax Compliance Issues Regarding Virtual Economies and Currencies

Posted in Regulatory and Compliance

We are updating our resource page to include a May 2013 U.S. GAO report on potential tax compliance issues related to virtual economies and currencies, which followed on the heels of FinCEN’s virtual currency guidance in March 2013 (read our analysis here). The GAO guide recognizes that virtual currencies pose various tax compliance risks, but acknowl… Read the rest

Comment Deadline on Ban of Remotely Created Checks and Payment Orders under FTC Telemarketing Sales Rule Extended to August 8

Posted in Regulatory and Compliance

In May, we highlighted the FTC’s notice of proposed rulemaking that proposed changes to the Telemarketing Sales Rule (TSR) (16 CFR 310). The NPRM included a proposed ban on the use of certain “novel” payment methods in all telemarketing transactions (i.e., both inbound and outbound). The proposed banned payment methods include remotely created c… Read the rest

Visa Revises Rules to Permit Discounts on Proprietary, Co-Brand Cards to Foster Its Partnership with Chase

Posted in Deals and Technology, Regulatory and Compliance

We understand that Visa recently revised its rules to permit US issuers and merchants to offer immediate discounts at the point of sale to encourage and reward the use of different types of Visa cards. Visa’s prior rule barred such point-of-sale differentiation among Visa cards. While the rule change could have a broad impact, we speculate that it also ma… Read the rest

FTC Order Against Fraudulent Payment Processor Joins Growing List of Regulatory Actions Involving Third Party Service Providers

Posted in Regulatory and Compliance

Following on the heels of significant regulatory actions by the Consumer Financial Protection Bureau, Federal Reserve, and the FDIC against regulated companies and their third-party service providers, the Federal Trade Commission recently announced a settlement order against a payment processor, as well as its principals (including one “John P. … Read the rest

FTC Releases Long-Awaited Update to its 2000 Dot Com Disclosures Guide

Posted in Regulatory and Compliance

The Federal Trade Commission (“FTC”) has released its revised guidance on the principles of advertising disclosures in the online marketplace.  Entitled “.com Disclosures,” the new guidance enhances the FTC’s earlier Dot Com Disclosures guide, published in May 2000, to address over a decade of technological changes in e-commerce, inclu… Read the rest

FTC Releases Report on Mobile Payments; Guidance on Addressing Issues in Mobile Carrier Billing, Privacy and Data Security

Posted in Regulatory and Compliance

Earlier this month, the FTC released a Report highlighting some of the key issues in the mobile payments space, with particular focus on mobile carrier billing, privacy and data security, and international payments.  The Report is based on various workshops held by the FTC on mobile technologies, and provides summary guidance on what issues companies s… Read the rest

FTC Releases Fifth Interim Report on Credit Report Accuracy

Posted in General

On February 11, 2013, the FTC made public its fifth interim report on a national study of credit report accuracy. The report concludes, among other things, that 26% of the 1,001 participants in the study identified at least one potentially material error on at least one of their three credit reports. A copy of the report is available here. The report will like… Read the rest

NACHA Issues Guidelines for Using QR Codes in Bill Pay Services and ACH Payments

Posted in General

NACHA’s Council for Electronic Billing and Payment recently released a guide on the use of “quick response” codes (or “QR codes”) to facilitate bill pay services, including initiating ACH payments and reviewing accounts. QR codes have been used for a variety of applications, including marketing and advertising, product information and eve… Read the rest

Regulatory Action Against First Bank of Delaware Reinforces BSA and AML Concerns with Third-Party Relationships

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance

Earlier this month, First Bank of Delaware[FN1] was subjected to concurrent $15 million penalties by the Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes Enforcement Network (FinCEN), along with a $15 million settlement with the Department of Justice (DOJ). The fines and penalties were in settlement of alleged violations of the B… Read the rest

Federal and State Agencies

Posted in Regulatory and Compliance

Compliance means conforming to the applicable rules and regulations of the various federal regulatory agencies. Our Resources page gives you access to the various agency websites and related information, including the Federal Reserve and its regional banks, MOUs between the CFPB and federal and state agencies, OCC, FDIC, FFIEC, FTC, FinCEN, MTRA an… Read the rest

Notes from the NACHA MEGA Meeting in Atlanta

Posted in Regulatory and Compliance

DWT representatives attended the October NACHA MEGA meeting in Atlanta, GA to discuss recent trends in payments and ACH services.  Among the highlights from the conference were:

  • Jan Estep, President and CEO of NACHA, kicked off the events with updates on recent and upcoming NACHA activities. In particular, Ms. Estep announced that the proposal to imple
Read the rest

Regulators Emphasize Importance of Money Transmission Laws, Consumer Protection and Other Regulatory Compliance for Mobile and Other Emerging Payment Innovations

Posted in Financial Services Litigation and Enforcement, Privacy and Data Security, Regulatory and Compliance

 At last week’s ACI Emerging Payments Systems conference in Washington, DC, sponsored in part by Davis Wright Tremaine, federal and state regulators and industry participants discussed the myriad legal issues facing innovators and incumbent market participants offering new payment products and services to consumers, including prepaid products, … Read the rest

NACHA Requests Comment on Standardizing P2P Payments Using WEB Code

Posted in Regulatory and Compliance

NACHA has released several concurrent requests for comment (“Requests”) on proposals to amend the NACHA Operating Rules (Rules), including amendments to the Rules regarding “compliance/operational topics” and international ACH transactions. In addition, NACHA has proposed standardizing the Rules to allow for person-to-person (P2P) paRead the rest

Mobile Carrier Billing – At Risk?

Posted in Regulatory and Compliance

Carrier billing is certainly not new to the payments industry, but as digital technologies continue to evolve, companies have increasingly looked to mobile carrier billing to improve the reach and efficiency of digital transactions. But recent activities by the Senate Commerce Committee, including a proposed bill to impose additional consumer prote… Read the rest

FinCEN offers clarification of prepaid access rule for bank-controlled prepaid access programs

Posted in Regulatory and Compliance

The Financial Crimes Enforcement Network (FinCEN) recently issued a letter (FIN-2012-R003) clarifying the registration obligations of certain participants in a bank-controlled prepaid access program. In general, the “provider of prepaid access” in a prepaid access program must register with FinCEN as a Money Services Business (MSB). However… Read the rest

CFPB Releases First Annual Report on Consumer Credit Card Complaints

Posted in Regulatory and Compliance

The Consumer Financial Protection Bureau (“CFPB”) released its first “Consumer Response Annual Report” on March 31, 2012 (“Annual Report”), summarizing over 6,000 consumer credit card complaints that the CFPB received from July 21 through December 31, 2011. According to the Annual Report, the most common complaints related to billing d… Read the rest