By Shannon McNeal and Bradford Hardin on Posted in Regulatory and ComplianceEarlier this month, the Federal Deposit Insurance Corporation (FDIC) published a Request for Information (RFI) seeking public comment on issues related to small-dollar lending by FDIC-supervised financial institutions. Specifically, the RFI solicits comments about “consumer demand for small-dollar credit products, the supply of small-dolla… Read the rest
By Shannon McNeal and Jonathan Engel on Posted in Financial Services Litigation and Enforcement, Regulatory and ComplianceEarlier 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
By Jonathan Engel and Davis Wright Tremaine on Posted in Financial Services Litigation and Enforcement, Regulatory and CompliancePresident 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
By Juliana Gerrick and Jonathan Engel on Posted in Regulatory and ComplianceFor many months, the Consumer Financial Protection Bureau (Bureau) has hinted it would focus its enforcement efforts on debt collection conduct. The Bureau’s settlement earlier this month with Security Group Inc., Security Finance Corporation of Spartanburg, and Professional Financial Services Corp. (collectively, “Security Group”) is th… Read the rest
By Wendy Kearns, Andrew J. Lorentz and Julia Dempewolf on Posted in Deals and Technology, Regulatory and ComplianceArizona’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 would, i… Read the rest
By Jonathan Engel on Posted in Financial Services Litigation and Enforcement, Regulatory and ComplianceNew 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
By Jonathan Engel and Robin Nunn on Posted in Financial Services Litigation and Enforcement, Regulatory and ComplianceRichard 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
By Davis Wright Tremaine on Posted in Regulatory Compliance/Federal Agencies ResourcesWednesday, 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 mechanic… Read the rest
By Robin Nunn and Davis Wright Tremaine on Posted in Financial Services Litigation and Enforcement, Regulatory and ComplianceThe 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
By Andrew J. Lorentz, Robin Nunn and Tom Scanlon on Posted in Regulatory and ComplianceThe 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… Read the rest
By Kelly Zemil on Posted in Regulatory and ComplianceAmong 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 indic… Read the rest
By Kelly Zemil and Jonathan Engel on Posted in Regulatory and ComplianceDebt buyers generally are considered “debt collectors” under the Fair Debt Collection Practices Act (“FDCPA”). However, on June 12, 2017, the Supreme Court decided Henson v. Santander Consumer USA Inc., which resolved an existing circuit split and unanimously affirmed a Fourth Circuit holding that a company that collects debts that it had p… Read the rest
By Brian J. Hurh on Posted in Regulatory and ComplianceI. Introduction
A confluence of regulatory activity and policy debates seem to be laying the groundwork for future regulation of consumer financial data aggregation activities. The outcome of these activities could significantly affect how financial data may be shared by financial institutions, controlled by third-party data aggregators, and used… Read the rest
By Brian J. Hurh on Posted in Regulatory and ComplianceIn a recent speech at the Northwestern Kellogg Public-Private Interface Conference, Federal Reserve Board Governor Lael Brainard indicated that the relationships between banks and data aggregators within the “fintech stack” may present safety and soundness concerns that warrant oversight by the FRB (and perhaps other prudential regulators).… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and ComplianceThe Consumer Financial Protection Bureau recently issued a request for information (the RFI) regarding the consumer credit card market. The CARD Act (Pub. L. No. 111–24, 123 Stat. 1734 (2009)) requires the CFPB to publish a biennial report on the state of the credit card market, and responses to the RFI will inform the CFPB’s findings in its forthcomin… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and ComplianceThe Consumer Financial Protection Bureau (CFPB or the “Bureau”) has recently expressed interest in how consumer financial information aggregators and financial services companies interact to share and protect financial data about consumers. Below we provide background on this growing industry, summarize the CFPB’s recent Request for Infor… Read the rest
By Andrew Owens and Davis Wright Tremaine on Posted in Regulatory and Compliance
Following their prior post on the CARD Act Report, Payments team members Andrew Owens and Adam Maarec authored an article entitled “The 2015 CARD Act Report” for the November 2016 issue of The Review of Banking & Financial Services. The abstract for the article is as follows:
The CFPB’s biennial report on the consumer credit card market, pursuan… Read the rest
By Davis Wright Tremaine on Posted in Deals and Technology, Regulatory and Compliance
Innovation in the delivery of financial products and services continues at a rapid rate. We discuss below some recent developments at the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency that illustrate the ways in which two key financial services regulators are working to keep up.
CFPB’s Innovation Insights Re… Read the rest
By Davis Wright Tremaine on Posted in Regulatory and Compliance
On October 13, the DWT Payments team briefed the Consumer Working Group of the Financial Services Roundtable (FSR) on the CFPB’s final prepaid account rule. The presentation focused on the following topics:
Scope of the Rule
Pre-Acquisition Disclosures
Periodic Statements – and Alternatives
Error Resolution
Regulation Z Overdraft
Effectiv… Read the rest
Our Payments Team addresses changes and continuities in the payments industry every day—leveraging our many years of industry experience and our presence on both coasts and in China. On paymentlawadvisor, we offer commentary on new developments that seem particularly significant, as well as resources that we believe can be helpful to others who are tasked with anticipating, understanding and addressing these developments.
RT @FTconnector: Talking about The Evolution of AI in Finance last week @DWTLaw in NYC
#finance #ArtificialInteligence #fintech https://t.co/QoKk4kUHhe
2 months ago
RT @PaulMoniz1: What’s next in #FinTech? Panel hosted @DWTLaw discussing FinTech 1 and FinTech2. Thx to @NYPAYGROUP for sponsoring.… https://t.co/bPcftlQy9F
2 months ago
RT @s_sboo: @DWTLaw's own Robin Nunn will be discussing FinTech Products and Services at @ABABusLaw's 9th Institute on Consumer… https://t.co/Kbu5rcDQ7s
3 months ago
We invite you to join @DWTlaw partner Jonathan Engel at @ABABusLaw’s annual meeting in Austin Sept 13-15. Jonathan… https://t.co/RdYZBdMjvM
3 months ago
Next up: @DWTLaw partner Robin Nunn explores #AI issues at the @nationalbar 93rd Annual Convention on 7/30. Join Ro… https://t.co/VcB2Nuwp1Q
