Developments and Commentary

Fintech Sandboxes – Update on State Approaches

Arizona’s Fintech Sandbox Last month Arizona became the first U.S. state to enact a law allowing for the establishment of a fintech regulatory sandbox program (H.B. 2434) to facilitate the growth of innovative financial products and services. The Arizona law charges the Attorney General to “establish a regulatory sandbox program” which ...

Federal Regulatory Agencies Advise on Cyber Insurance for Information Security Programs

Federal regulatory agencies, acting through the Federal Financial Institutions Examination Council (FFIEC), have issued guidance for financial institutions about the role of cyber insurance in risk management of information technology systems. See, e.g., FDIC FIL-16-2018 (April 10, 2018); OCC Bulletin 2018-8 (April 11, 2018). The agencies—principally responsible for supervising banks, savings associations, and credit unions—adopted ...

Discrimination and Algorithms in Financial Services: Unintended Consequences of AI

It’s troubling enough when facial recognition software couldn’t recognize Asian faces, the crime prediction algorithm targeted black neighborhoods, the job bank was more likely to show men highly paid executive jobs, and the criminal recidivism model had racial bias. But what about the day when the online lending platform uses ...

Rumors of UDAAP’s Demise May be Exaggerated

New Priorities at the CFPB… On February 12, 2018, Acting Director of the Consumer Financial Protection Bureau (“CFPB” or the “Bureau”) and Director of the Office of Management and Budget (“OMB”), Mick Mulvaney, released two documents that provide further insight into the future of the Bureau. But while one describes an ...

CARD Act Report: The CFPB Departs from Precedent

Editors’ Note: The following is one part of DWT’s ongoing coverage of the 2017 CARD Act Report.  Other parts include our prior PLA post The Consumer Credit Market: The CFPB’s 2017 CARD Act Report and a recent FSR webinar. This article also appears in The Review of Banking & Financial Services. On ...

Resource Updates

Webinar: Exploring the Data Aggregation Market

Wednesday, November 29, 2017 2:00 p.m. – 3:00 p.m. EST We invite you to join us for a discussion that will explore how consumer financial data aggregators are driving innovation in financial technology and analyze how the CFPB’s recent principles on data aggregation will affect this growing market. We will be discussing: The mechanics of data ...

Regulatory Alert: Debt Collection

Among the announcements in its Spring 2017 rulemaking agenda, which was just released on July 20, the Consumer Financial Protection Bureau (CFPB) announced that later this year it plans to issue a Notice of Proposed Rulemaking (NPRM) regarding debt collectors’ communications and disclosure practices. The CFPB’s guidance is notable both for ...

Second Circuit Holds That Printing of Expiration Date Is a Bare Procedural Violation of FACTA That Is Inadequate Under Spokeo to Confer Standing to Sue

Addressing the issue of when “a bare procedural violation of a statutory right constitute[s] an injury in fact sufficient for standing to bring suit in federal court”, the U.S. Court of Appeals for the Second Circuit has joined the Seventh Circuit in holding, in the specific context of the Fair ...

UDAAP Update: Reflections on Recent Cases & the Future of State AG & Consumer Advocate Activity

On Tuesday May 16th, 2017, Adam Maarec and Joseph Rodriguez participated in a panel at the Conference on Consumer Finance Law’s Annual Meeting in Chicago titled UDAAP Update: Recent Cases and the Future of State AG & Consumer Advocate Activity. Andrew Dougherty from the Illinois Attorney General’s Consumer Fraud Bureau ...

The 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 ...