Payment Law Advisor Legal Commentary and Resources for the Payment Industry

James H. Mann

James H. Mann

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Posts by James H. Mann

U.S. Supreme Court Sides with Amex in Landmark Card Case

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
A divided U.S. Supreme Court sided with American Express Company and American Express Travel Related Services Company (Amex) over Ohio, sixteen other states and the United States based on the Court’s application of the theory of two-sided markets. Ohio v. American Express Co., No. 16-1454, slip op. at 2 (June 25, 2018). At issue were Amex’s antisteer… Read the rest

A “Bad Apples” Database for Banks? Not So Fast.

Posted in Regulatory and Compliance
Overview Should banks, while guarding against rolling episodes of misconduct by bankers, have the ability to blackball employees from the banking industry?  A “bad apples” database of bank employees who have acted improperly in prior jobs would help ferret out potential problem employees before they are hired and able to do more bad banking deals… Read the rest

Assessing the Utility of CARD Act Disclosures

Posted in Regulatory and Compliance
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

The Consumer Credit Market: A Report from the CFPB

Posted in Regulatory and Compliance
PLA today posts “The Consumer Credit Card Market,” the Consumer Financial Protection Bureau’s biennial report on the consumer credit card market.  The CFPB’s report, required by the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), provides significant data on the credit card market, including the use, costs… Read the rest

Co-branding Credit Cards with Charities: Commercial Co-Venture Issues

Posted in Deals and Technology
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. Alth… Read the rest

CFPB Proposes No-Action Letter Policy for Innovative Products

Posted in Deals and Technology, Regulatory and Compliance
The Consumer Financial Protection Bureau has proposed a no-action letter policy under which the agency would issue letters stating that its staff “has no present intention to recommend initiation of an enforcement or supervisory action” with respect to specified matters involving innovative financial products or services. The proposal is an enc… Read the rest

Fair Lending Analysis of Credit Cards

Posted in Deals and Technology
PLA today posts a link to a Philly Fed discussion paper entitled “Fair Lending Analysis of Credit Cards.”  The paper addresses, among other matters, disparate impact risks in credit scoring models and prescreen campaigns.  The paper is of interest not only for its conclusions and recommendations, but also as an indication of the continued regulat… Read the rest

PLCC Program Structures: Strategic Choices for Merchants

Posted in Deals and Technology, General
Consistent with Payment Law Advisor’s purpose of demystifying card programs – see, for example, Culture Shock: A Retailer’s Initial Lending Program with a Bank, and PLCC and Cobrand Arrangements – this article briefly reviews various PLCC-program structures that a merchant could adopt, along with key pros and cons of each. Identifying the mos… Read the rest

New Form Factors in Cobrand and Private-Label Credit Card Program Agreements

Posted in Deals and Technology
Most current cobrand and private-label agreements involve one or, more usually, two parties that are issuing, branding or developing non-traditional form factors alongside or in lieu of plastic cards.  Some of these form factors may be linked to intermediaries like mobile wallets (and in certain agreements form factors may be defined to include mobil… Read the rest

College Debit Cards

Posted in Deals and Technology
PLA today posts the GAO’s report, issued last month, analyzing the market for college debit cards and expressing concern about “students’ access to no-fee ATMs, schools’ influence over students’ banking and payment choices, potential conflicts of interest for schools, and the lack of transparency surrounding card agreements.”  The CF… Read the rest

Culture Shock: A Retailer’s Initial Lending Program With a Bank

Posted in Regulatory and Compliance
Many retailers and OEMs have engaged banks to provide private-label credit to their individual and small-business customers, or have joined with banks in offering them cobranded general-purpose credit. Many other retailers/OEMs have yet to do so. Among the key issues that such an entity should weigh when considering such an initiative is the impact of e… Read the rest

Dealing with Networks and Regulatory Compliance: The Legal Side of Mobile Retail

Posted in Regulatory and Compliance
On April 16, DWT lawyers James Mann and Ronnie London presented on the topic of “Dealing with Networks and Regulatory Compliance: The Legal Side of Mobile Retail” at the RAMP Advanced Commerce and Mobile Retail Services Summit in Chicago. The presentation focused primarily on two topics: Why the Networks Are Here to Stay (and Some Suggestion… Read the rest

Authorities Regarding GLBA Privacy and the FCRA

Posted in General
One of PLA’s missions is to facilitate knowledge-management for payments practitioners. Pursuant to that mission, PLA is today posting four fundamental, but not always easily accessed, authorities regarding GLBA privacy and the FCRA. Regarding GLBA privacy, we are posting OCC interpretative letters 910 and 917, which remain basic authorities for… 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