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Category Archives: Financial Services Litigation and Enforcement

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CFPB Highlights Supervisory Findings Related to Credit Cards

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
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… Read the rest

The Latest Survey of UDAAP Activities

Posted in Financial Services Litigation and Enforcement
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 occur… Read the rest

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

Posted in Financial Services Litigation and Enforcement
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 and Daniel Edelman from t… Read the rest

The Latest Survey of UDAAP Activities

Posted in Financial Services Litigation and Enforcement
Adam Maarec, member of DWT Payments Team, along with John C. Morton, 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… Read the rest

SoFi Settlement Provides Lessons for Lenders Marketing “Soft Pull” Preapprovals

Posted in Financial Services Litigation and Enforcement
DWT Payments team member Adam Maarec recently authored an article entitled “SoFi Settlement Provides Lessons for Lenders Marketing ‘Soft Pull’ Preapprovals” for the September/October 2016 issue of the FinTech Law Report. The full text of the article appears below (reprinted with permission from volume 19 of FinTech La… Read the rest

NY Proposes Cybersecurity Regulations for Financial Services

Posted in Financial Services Litigation and Enforcement, Privacy and Data Security
Banks, insurers, and other financial services companies in the Empire State may have to abide by new cybersecurity regulations come January 1, 2017. On September 13, New York Governor Andrew Cuomo and the New York Department of Financial Services (NYDFS) announced new regulations that, if put into effect, would impose a myriad of cybersecurity requiremRead the rest

Caveat Venditor: CFPB Bulletin on Sales Practices and Incentive Compensation Suggests More Enforcement Actions may be Coming

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
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

Federal Trade Commission Hosts Crowdfunding & Peer-to-Peer Payments Forum

Posted in Financial Services Litigation and Enforcement
On October 26, 2016, the Financial Trade Commission hosted a forum on Crowdfunding and Peer-to-Peer Payments, in Washington, D.C., the latest in the Commission’s FinTech Forums Series. The forum included two panels: (1) Peer-to-Peer Payments – Their Emergence and Path Ahead and (2) Crowdfunding – Benefits and Risks for Consumers. The panels fea… Read the rest

The Latest Survey of UDAAP Activities

Posted in Financial Services Litigation and Enforcement
Adam Maarec, member of DWT Payments Team, along with John C. Morton, 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 occu… Read the rest

FTC Holds Workshop on Effective Consumer Disclosures

Posted in Financial Services Litigation and Enforcement
The Federal Trade Commission (FTC) held a workshop last week on the effectiveness of consumer disclosures. Titled “Putting Disclosures to the Test”, the workshop featured a series of presentations on recent academic, professional, and government research. Given that the average reading level in the United States is between the 7th and 9th grade, f… Read the rest

CFPB Proposes Changes to Mortgage Industry

Posted in Financial Services Litigation and Enforcement
The Consumer Financial Protection Bureau recently issued a proposed rule regarding integrated disclosure for mortgage transactions and, more recently, published a policy paper regarding loss mitigation programs in housing transactions.  Taken together, the Bureau’s actions likely will impart new practices in the mortgage industry and affect… Read the rest

CFPB Releases Propose Rule Curtailing the Use of Class Action Waivers in Arbitration Agreements

Posted in Financial Services Litigation and Enforcement
The Consumer Financial Protection Bureau recently proposed a rule that would regulate the use of pre-dispute arbitration provisions in agreements for many types of consumer financial products and services. The proposed rule would effectively ban class action waivers in arbitration agreements for credit cards, personal loans, remittances, and mobi… Read the rest

CFPB Proposes Rule Regulating the Use of Pre-Dispute Arbitration Agreements

Posted in Financial Services Litigation and Enforcement, General
The Consumer Financial Protection Bureau proposed a rule that would regulate the use of pre-dispute arbitration provisions in agreements for many types of consumer financial products or services.  Below is a summary of key provisions of the Bureau’s proposal (click here to read PLA’s previous coverage of the subject.) First, the proposed rule wou… Read the rest

Agreements between Lending Club and WebBank

Posted in Financial Services Litigation and Enforcement
PLA today posts amended and restated versions of the principal agreements between Lending Club and WebBank. The new agreements are available on the “Deals and Technology Resources” page (see the “WebBank Agreements” section at the bottom of the page).  The revised agreements address concerns created by the Madden v. Midland Funding decision… Read the rest

CFSC Roundup: From Issuing Credit Online to UDAAP Compliance Management

Posted in Credit/Debit Payments Resources, Financial Services Litigation and Enforcement
DWT’s Payments Team participated in the ABA Consumer Financial Services Committee’s Winter Meeting in Park City, Utah last week. Andrew Owens delivered a presentation on advertising and issuing credit online during the program’s kick-off event, and Adam Maarec participated in a panel on how to integrate unfair, deceptive, or abusive act or prac… Read the rest

CFPB Enforcement Actions in 2015: A Look Back

Posted in Financial Services Litigation and Enforcement
Year-end 2015 offers an opportunity to revisit and update the Consumer Financial Protection Bureau’s (CFPB’s) report, issued last July, summarizing its supervisory and enforcement activities.  The report encompassed the period since the CFPB’s inception.  It addressed the confidential supervision process, including self-reported vio… Read the rest

Recent Actions Added To UDAAP Database

Posted in Financial Services Litigation and Enforcement
PLA today updates the UDAAP database with a series of enforcement actions from the CFPB and, notably, the prudential regulators. The majority of enforcement actions involving allegedly unfair, deceptive, and abusive acts and practices (UDAAP) over the last six months have been filed by the Consumer Financial Protection Bureau (CFPB) using its UDAAP po… Read the rest

Recent Actions Added To UDAAP Database

Posted in Financial Services Litigation and Enforcement
The CFPB and FDIC have issued new enforcement actions that include allegations of unfair, deceptive, and/or abusive acts and practices (UDAAP) in connection with consumer financial products. We’ve updated our UDAAP Database with the most recent actions to facilitate understanding of the themes and patterns in UDAAP enforcement actions. In addit… Read the rest

Sprint Agrees to Pay FTC $2.95 Million to Settle Risk-Based Pricing Rule Charges Under the FCRA

Posted in Financial Services Litigation and Enforcement
Mobile service providers frequently look at their customers’ credit reports and scores to determine the best pricing plans for those customers. But asa recent settlement between Sprint Corporation and the Federal Trade Commission shows, mobile carriers that use customers’ credit information to determine service rates may be subject to the FTC… Read the rest

Recent Actions Added To UDAAP Database

Posted in Financial Services Litigation and Enforcement
The CFPB has issued new enforcement actions that include allegations of unfair, deceptive, or abusive acts and practices (UDAAP) in connection with consumer financial products. We’ve updated our UDAAP Database with the most recent actions to facilitate understanding of the themes and patterns in UDAAP enforcement actions that have been issued not j… Read the rest

The CFPB and the Business of Insurance

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
DWT payments team member Adam Maarec recently co-authored (with James C. Sivon) an article entitled “The CFPB and the Business of Insurance: An Analysis of the Scope of CFPB’s Authority Over Insurance Sales” in the Quarterly Report of the Conference on Consumer Finance Law. In 2014, the Bureau of Consumer Financial Protection (CFPB) is… Read the rest

Increased Risk for Buyers of Credit Card Loans

Posted in Financial Services Litigation and Enforcement
Third party debt buyers may face increased threat of state-law class action lawsuits after a recent Second Circuit ruling prohibiting such debt buyers from invoking federal preemption defenses under the National Bank Act to defeat state-law usury claims. In Madden v. Midland Funding, LLC, 786 F.3d 246 (2d Cir. 2015), the Second Circuit rejected the pree… Read the rest