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Category Archives: Financial Services Litigation and Enforcement

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Third Circuit Says CFPB May Investigate the Totality of a Target’s Business Conduct

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
Earlier this week, the Third Circuit rejected student loan servicer Heartland Campus Solutions, ECSI’s challenge to a CFPB civil investigative demand (CID), which sought information concerning ECSI’s “servicing of student loans, including processing payments, charging fees, transferring loans, maintaining accounts, and credit reportin… Read the rest

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

Is Kraninger’s Nomination to Head Bureau a Tactical Choice to Continue Mulvaney’s Policy Trajectory?

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
President Trump formally nominated Kathy Kraninger to become the new head of the Consumer Financial Protection Bureau (the “Bureau”) on June 18, 2018. While this nomination was a surprise to many due to Kraninger’s apparent lack of financial or consumer regulatory experience, the timing of the nomination and associated tactical considerations… Read the rest

Discrimination and Algorithms in Financial Services: Unintended Consequences of AI

Posted in Financial Services Litigation and Enforcement
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 big data to determin… Read the rest

Rumors of UDAAP’s Demise May be Exaggerated

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
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 out of control Bure… Read the rest

CARD Act Report: The CFPB Departs from Precedent

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
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 December 27, 2017, as required by law, the Consumer… Read the rest

State Regulatory Enforcement Initiatives: Cooperation and Conflict

Posted in Financial Services Litigation and Enforcement
On January 30, 2018, DWT payments team member Andy Lorentz moderated a panel at ACI’s 18th National Forum on Prepaid Card Compliance, in Washington, D.C., entitled “Update on State Regulatory Enforcement Initiatives Affecting the Prepaid Card Industry.” The discussion focused in particular on examples of state and federal cooper… Read the rest

The Consumer Credit Market: The CFPB’s 2017 CARD Act Report

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
The Consumer Financial Protection Bureau recently published its biennial assessment of the consumer credit card market, titled “The Consumer Credit Card Market.” This report is based in part on responses provided by market participants to the CFPB’s request for information on the consumer credit card market, which we discussed here. The CFPB… Read the rest

Next Steps for the CFPB

Posted in Financial Services Litigation and Enforcement, Regulatory and Compliance
Richard Cordray, the director of the U.S. Consumer Financial Protection Bureau (CFPB), resigned from this post at the close of business last Friday, November 24.  In a statement to staff, he said that Leandra English, the CFPB’s chief of staff, had been named deputy director and would take over as acting director of the agency upon his exit.  On that Fri… Read the rest

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