The Consumer Financial Protection Bureau recently issued a request for information (the RFI) regarding the consumer credit card market. The CARD Act (Pub. L. No. 111–24, 123 Stat. 1734 (2009)) requires the CFPB to publish a biennial report on the state of the credit card market, and responses to the RFI will inform the CFPB’s findings in its forthcomin… Read the rest
The Consumer Financial Protection Bureau (CFPB or the “Bureau”) has recently expressed interest in how consumer financial information aggregators and financial services companies interact to share and protect financial data about consumers. Below we provide background on this growing industry, summarize the CFPB’s recent Request for Infor… Read the rest
On November 28, 2016, the Consumer Financial Protection Bureau (the “Bureau”) issued CFPB Compliance Bulletin 2016-13, titled “Detecting and Preventing Consumer Harm from Production Incentives” (the “Bulletin”). Inviting “dialogue and discussion” on issues surrounding the uses of production incentives for consumer financi… Read the rest
To address the increasing risk of technology failures and cyber-attacks affecting the largest banking organizations, an advance notice of proposed rulemaking titled Enhanced Cyber Risk Management Standards (the ANPR) was recently issued by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Fed… Read the rest
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 on the consumer credit card market, pursuan… Read the rest
Innovation in the delivery of financial products and services continues at a rapid rate. We discuss below some recent developments at the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency that illustrate the ways in which two key financial services regulators are working to keep up.
CFPB’s Innovation Insights Re… Read the rest
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… Read the rest
On October 13, the DWT Payments team briefed the Consumer Working Group of the Financial Services Roundtable (FSR) on the CFPB’s final prepaid account rule. The presentation focused on the following topics:
Scope of the Rule
Periodic Statements – and Alternatives
Regulation Z Overdraft
Effectiv… Read the rest
On September 7, 2016, attorneys from Davis Wright Tremaine LLP attended Next Money NYC 2016. Next Money featured speakers from across the payments industry and the BBVA Open Talent Pitch Competition where twenty fintech start-ups competed for two € 30,000 prizes. Here are our top takeaways from the conference:
Blockchain Holds Potential to Reshape Di… Read the rest
This morning we attended the meeting of the Financial Services Roundtable’s Consumer Working Group, which featured a presentation by David Silberman, Acting Deputy Director of the Consumer Financial Protection Bureau.
Deputy Director Silberman described the Bureau’s rulemaking process, touched on a handful of its ambitions for rules under a ra… Read the rest
At ACI’s recent the 12th National Forum on Emerging Payment Systems in San Francisco, Andy Lorentz, the leader of DWT’s Emerging Payments and Prepaid practice, served as conference co-chair and presented as part of a panel entitled “Mobile Payment Systems and the Challenges Facing Financial Inclusion: Managing the Expe… Read the rest
In February 2016, hackers stole $81 million from the Bangladesh central bank by sending fraudulent messages through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) messaging system.
Three months later, hackers attempted to steal over $1 million from a commercial bank in Vietnam using a similar method. Since then, almost a doz… Read the rest
On June 30, 2016, the New York Department of Financial Services (NYDFS) issued a final regulation obliging regulated institutions to meet enhanced requirements for transaction monitoring and filtering programs aimed at preventing Bank Secrecy Act (BSA)/anti-money laundering (AML) violations and transactions with sanctioned entities (the “Fin… Read the rest
At this week’s NBPCA Power of Prepaid conference in Washington, DC, DWT Payments team member Adam Maarec joined a panel entitled “Spotlight on CFPB Enforcement: Uncovering Recent Trends, Targets and Priorities Surrounding Prepaid” to discuss, amongst other topics, UDAAP as a CFPB enforcement priority; spotting unfairness, deception, and abu… Read the rest
The PCI Council has released a new version of its data security standard, PCI DSS v. 3.2. For more information from the PCI Council, click here. Look for our analysis and free webinar announcement next week!… Read the rest
The number of states that do not regulate money transmitters grows ever smaller as New Mexico recently enacted the New Mexico Uniform Money Services Act. Prior to the enactment, New Mexico only regulated issuers and sellers of checks and money orders. Under the new law, a money transmitter — including an issuer or seller of payment instruments a… Read the rest
At the 2016 Digital Payments Intensive in London, DWT Emerging Payments and Prepaid team leader Andy Lorentz offered attendees insight into some major recent and upcoming developments with respect to regulation of consumer financial services activities in the United States this year. Such developments include everything from pending rules on pre… Read the rest
A recent enforcement action by the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) against MasterCard International Incorporated (“MasterCard”) stands as a reminder of the importance of strictly complying with even seemingly ministerial reporting requirements applicable to financial institutions that hold blo… Read the rest
On March 31 and April 1, Davis Wright Tremaine LLP sponsored the ACI Emerging Payments Forum in Chicago, IL, where leading industry experts and senior regulatory officials met to address the evolving legal, regulatory and enforcement landscape of emerging payment systems. DWT partner and lead of the DWT Emerging and Prepaid Payments Practice, Andy Lo… Read the rest
The Phase 2 audit program for HIPAA compliance now is underway — and financial institutions are on the list as potential targets. Many financial institutions are business associates under HIPAA, usually because of their “value-added” services to clients that are health care providers and health plans.
Other financial institutions are cl… Read the rest
The intersection of technology and financial services innovation raises a host of regulatory questions for new participants, and that’s before thinking about how those regulations are evolving to keep pace with new developments. DWT’s Emerging Payments and Prepaid practice leader Andy Lorentz joined Tommy Nicholas (Co-Founder, Alloy.co), Wre… Read the rest
DWT and the Financial Services Roundtable jointly presented a webinar on the CFPB’s latest CARD Act Report and its potential impact on the credit card market in January 2015. In case you missed it (or want to listen again), a recording of the webinar is now available by clicking here.
DWT Payments team members Andy Owens and Adam Maarec were joined by Rich Fo… Read the rest
DWT Payments Team member Adam Maarec recently published an updated Survey of Activities Identified as Unfair, Deceptive, or Abusive Under the Dodd-Frank Act. The survey covers activities that occurred during the second half of 2015. Source documents for each of the enforcement actions referenced in the survey are available in our UDAAP database.
We i… Read the rest
PLA today posts “Simplification of Privacy Disclosures: An Experimental Test,” in which Omri Ben-Shahar and Adam Chilton, both of the University of Chicago School of Law, having studied the consumer impact of such disclosures, conclude: “Our results reveal that none of the simplification techniques help inform respondents or affect their beha… Read the rest