Payment Processing + Cards

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As anticipated, yesterday the CFPB announced the release of its report to Congress following the CFPB’s study of arbitration agreements in connection with offering or providing consumer financial products or services. According to the CFPB, the study’s results “indicat[e] that arbitration agreements restrict consumers’ relief for disputes with financial service providers by limiting class…

On March 10, the CFPB will hold a field hearing on arbitration at 11 a.m. in Newark, New Jersey.

The event will include remarks by Richard Cordray, head of the Consumer Financial Protection Bureau, and will be held at the J. Harry Smith Lecture Hall at Essex Community College, 303 University Avenue.  Tomorrow’s field hearing…

On February 25, the Superintendent of the New York Department of Financial Services (“DFS”), Benjamin M. Lawsky, spoke at Columbia Law School regarding the increased role of states as regulators, especially in the case of emerging risks such as cybersecurity.  The speech, titled “Financial Federalism: The Catalytic Role of State Regulators in a Post-Financial Crisis…

On March 3, the Eleventh Circuit Court of Appeals, in Stalley v. ADS Alliance Data Systems, Inc., No. 14-10872, held that a servicer of credit card accounts did not violate the Florida Security Communications Act (FSCA) when it recorded conversations with consumers in the ordinary course of business without the consent of all parties.

In…

On February 27, the White House proposed a bill that would provide consumers with a “Privacy Bill of Rights” as well as provide an enforcement mechanism for data breach enforcement actions by the FTC and state attorneys general.  The language used is similar to a proposal by the administration in 2012 which failed to gain…

On February 19, the CFPB proposed a rule that would suspend the requirement that creditors submit agreements for open-end consumer credit plans to the Bureau under section 1632(d) of the Truth in Lending Act and section 1026.58 of Regulation Z.  The temporary suspension would last one year, making it applicable to the next three quarterly…

On February 23, legislation was introduced in the West Virginia Senate to amend the state’s Consumer Credit Protection Act.  Senate Bill 542 would revise sections 46A-2-121, -122, -125, -126, and -128, sections 46A-5-101 and -106, and add new section 46A-5-107.

Among these proposed changes, the Bill seeks to:

  • Modify section 46A-2-121(1) regarding a claim for

…

On February 12, Representative Steve Stivers (R-Ohio) reintroduced bi-partisan legislation that would require the Senate to confirm an independent inspector general for the Consumer Financial Protection Bureau, arguing it would provide greater oversight.

The Bureau of Consumer Financial Protection-Inspector General Act of 2015 (H.R. 957) is co-sponsored by Tim Walz (D-Minn.), Blaine Luetkemeyer (R-Mo.), and…

On February 11, a group of Florida retainers, including a jewelry store and hobby shop, filed an appeal before the Eleventh Circuit Court of Appeals that, in part, challenges Florida’s law prohibiting merchants from charging “swipe fees” on credit card sales.  According to the retailers, the state law is unconstitutional and violates the First Amendment…

On February 11, Pennsylvania Attorney General Kathleen Kane announced that payday lender Advance America Cash Advance Centers Inc. will pay $10 million to settle claims that it hid allegedly sky-high interest rates from consumers in violation of state law.

In a lawsuit against Advance America, Kane alleged that the company offered a loan product it…