On June 9, South Carolina Governor Nikki Haley signed into law the South Carolina Anti-Money Laundering Act. The South Carolina AML Act, among other requirements, imposes a licensing requirement for persons and entities engaged in money transmission in the state. South Carolina is now the 49th state to implement a law regulating money
Marketplace Lender Challenges Scope of CFPA and What Constitutes UDAAP
In 2015, the Consumer Financial Protection Bureau filed a lawsuit against CashCall, Inc., a marketplace lender, alleging that it violated the Consumer Financial Protection Act’s (“CFPA”) prohibition on unfair, deceptive, or abusive acts and practices (“UDAAP”) by making usury loans in violation of the state laws in which the consumers were located.
On
Senate Committee Letter to Federal Agencies Indicates Likelihood of More Federal Supervision and Regulation Over Fintech Companies
In a letter dated July 21, Senators Sherrod Brown (D-Ohio) and Jeffrey Merkley (D-Ore.), on behalf of the Committee on Banking, Housing, and Urban Affairs (the “Committee”), asked the heads of several federal agencies to provide the Committee with information concerning their understanding of the role of fintech in the consumer financial services
Settlement Between North Carolina and Payday Lender Serves as Reminder to Payment Processors
On June 6, the Attorney General for the State of North Carolina executed a settlement agreement with a payday lender, Future Income Payments, LLC, arising out of the payday lender’s alleged violation of that state’s usury laws. The settlement agreement requires the lender to pay North Carolina $50,000 in attorneys’ and investigation fees, plus a
Final Days of Payday? CFPB Proposes Update to Payday Lending Rule
On June 2, the Consumer Financial Protection Bureau released a newly proposed rule that, if enacted, will place new burdens on lenders who offer consumers payday loans, auto title loans, and other short-term, small-dollar loans.
Overview
The proposed rule will require lenders to inquire about the loan applicant’s income and expenses by conducting a “full-payment”
Vermont Executes Assurance of Discontinuance with Payday Lender Payment Processor
On May 19, 2016, the Vermont Attorney General announced that it had executed an Assurance of Discontinuance with a payment processor arising out of the Attorney General’s allegation that the payment processor violated a Vermont state statute prohibiting unfair and deceptive practices when the processor processed payments for dozens of payday lenders who did not
Campbell-Ewald Court Rejects Defendant’s Attempt to Pay Up
As we previously reported, the Supreme Court recently issued its decision in Campbell-Ewald Co. v. Gomez, where the Court held that an unaccepted offer that would fully satisfy a plaintiff’s individual claim is insufficient to render that claim moot in a class case. The Supreme Court’s opinion, however, left open the question of
Troutman Sanders Lawyers Publish Consumer Financial Regulation Survey
We are pleased to announce that Troutman Sanders attorneys David Anthony, Ashley Taylor, Paige Fitzgerald, and Laura Anne Kuykendall published a survey through Thomson Reuters which focuses on consumer financial regulation issues for the Commonwealth of Virginia. The survey is formatted as a question and answer guide, and addresses state-specific laws governing
Join Us for a Complimentary Webinar on Best Practices for Banks in Third-Party Payment Processing
We are pleased to announce that Troutman Sanders partner Keith Barnett will be a featured speaker during a live webinar entitled “Best Practices for Banks in Third-Party Payment Processing” on Thursday, June 9 at 2:00 p.m. EDT.
Banks with third-party payment processor (TPPP) customers have received a great deal of regulatory scrutiny over the past
FTC Joins CFPB in Expanding Oversight of “Deceptive” Practices
On May 4, the Federal Trade Commission announced that it had reached a settlement with Very Incognito Technologies, Inc., d/b/a Vipvape, a hand-held vaporizer manufacturer. The settlement resulted from the FTC’s allegations that Vipvape violated the FTC Act by representing on its website that it was a participant in the Asia-Pacific Economic Cooperation Cross-Border Privacy