Developments and Commentary

Federal Reserve Enters Consent Order to Sanction Deceptive Practice Involving Credit Card Product

The Board of Governors of the Federal Reserve System (Federal Reserve) recently exercised its authority to enforce laws prohibiting unfair or deceptive acts or practices committed by a financial institution under the Federal Reserve’s jurisdiction. On October 26, the Federal Reserve entered a consent order with Mid America Bank & ...

CFPB Highlights Supervisory Findings Related to Credit Cards

The Consumer Financial Protection Bureau’s (CFPB) most recent Supervisory Highlights report identified a number of areas of non-compliance by credit card issuers that were confidentially resolved in the supervisory process. These periodic reports are intended to identify potential areas of non-compliance observed in the marketplace by the CFPB during its ...

The Latest Survey of UDAAP Activities

DWT Payments team member Adam Maarec, along with Christopher R. Rahl, a member of Gordon Feinblatt’s Financial Services Practice Group, recently published an updated survey of activities identified by the Dodd-Frank Act as unfair, deceptive, or abusive related to consumer financial products. The survey covers relevant UDAAP activities that occurred ...

CFPB’s First No-Action Letter: Supporting Innovation AND Supervision for Fair Lending

The Consumer Financial Protection Bureau (the “Bureau”) issued its first no-action letter (“NAL”) to Upstart Network, Inc. (“Upstart”), a marketplace lender that sought to clarify that its automated model for underwriting unsecured, non-revolving loans does not present a violation of the Equal Credit Opportunity Act (“ECOA”) and its implementing regulation, ...

OCC Issues Retail Lending Handbook Booklet

On April 12, 2017, the Office of the Comptroller of the Currency (the “OCC”) issued a Retail Lending booklet (“Booklet”) as part of the Comptroller’s Handbook.  The OCC’s Booklet outlines a framework for evaluating retail credit risk management activities and discusses the risks associated with retail lending.  The Booklet supplements ...

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 ...