The Consumer Finance Podcast

In this special crossover episode of The Consumer Finance Podcast and Payments Pros Podcast, Chris Willis and Josh McBeain interview two colleagues who delve into the Consumer Financial Protection Bureau’s (CFPB) recent interpretive rule that classifies buy now, pay later (BNPL) transactions as credit cards. Mark Furletti and Jason Cover explore the implications of this rule under Regulation Z, including the introduction of the term “digital user account” and its impact on BNPL providers. The discussion covers the regulatory requirements, potential challenges for compliance, and the broader legal context, including the possible effects of the Loper Bright case on administrative interpretations. With a July 30 compliance deadline looming, the episode provides critical insights for industry stakeholders navigating this significant regulatory shift.

In this episode of The Consumer Finance Podcast, Chris Willis discusses the complexities and potential pitfalls of bank-fintech partnerships. Joined by colleagues Alexandra Steinberg Barrage, Matthew Bornfreund, and Jesse Silverman, the conversation delves into the structure of banking-as-a-service (BaaS) relationships, regulatory pressures, and key friction points such as BSA/AML compliance and ledgering. The team offers practical solutions for both banks and fintechs to ensure successful collaborations, emphasizing the importance of clear roles, responsibilities, and robust compliance measures. This episode is essential listening for anyone involved in or considering a bank-fintech partnership.

In this episode of The Consumer Finance Podcast, Chris Willis delves into the renewed focus on incentive compensation by federal financial regulators. Joined by colleagues Sheri Adler and Jina Davidovich from the Employee Benefits and Executive Compensation group, the discussion centers on the implications of Section 956 of the Dodd-Frank Act. The episode explores the historical context, proposed rule changes, and the potential impact on financial institutions and their employees. Key topics include the scope of covered institutions, specific requirements for senior executives and significant risk-takers, and the governance and compliance obligations that may arise if the rules are enacted.

In this special episode, Brooke Conkle and Chris Capurso discuss a recently released circular from the Consumer Financial Protection Bureau (CFPB). They are joined by special guest Caleb Rosenberg, who provides insights into the potential impacts this “quietly released” circular may have on the auto finance industry. Caleb brings a wealth of experience, including assisting businesses with secured and unsecured loan agreements, retail installment sales contracts, credit card agreements, and alternative finance agreements. He also helps clients navigate regulatory inquiries, particularly those concerning the application of state law to alternative financing products. While this marks the final episode of our five-part series on auto finance issues, stay tuned for more content. Be sure to listen until the end for a BIG announcement!

In this episode of The Consumer Finance Podcast, Chris Willis introduces the firm’s esteemed bank regulatory team. Featuring Kevin Petrasic, Matthew Bornfreund, Alexandra Barrage, and Helen Lee, the episode delves into the team’s extensive experience in bank regulation, supervisory and enforcement matters, fintech, payments, and more. Each team member shares their unique background, including significant government and in-house experience, and discusses how their combined knowledge enhances Troutman Pepper’s ability to comprehensively serve financial institution clients. The episode underscores the firm’s strategic goal to be a one-stop shop for all financial services legal needs.

In this episode of The Consumer Finance Podcast, Chris Willis is joined by partner Glen Trudel to discuss a recent appellate court decision affirming that a group of securitization trusts “engaged” in a known “consumer financial product or service”, and therefore are subject as covered persons to the enforcement authority of the Consumer Financial Protection Bureau (CFPB). This decision could potentially expose similarly situated securitization trusts to the jurisdiction and enforcement authority of the CFPB. Chris and Glen discuss the court’s rationale for the holding and delve into the implications of this ruling, including the potential for increased regulatory scrutiny and the need for trusts to ensure compliance with consumer laws relating to the loan assets they hold. They also discuss potential changes in the terms of future securitization documentation and the importance of due diligence and monitoring of service providers. The episode concludes with a discussion on the significance of this ruling in the legal landscape for securitization trusts and whole loan owners.

In this episode of The Consumer Finance Podcast, Chris Willis is joined by Troutman Pepper Partner Lori Sommerfield to discuss the new guidance issued by the Department of Housing and Urban Development (HUD) on targeted advertising for housing and housing-related ads. The conversation delves into the implications of the guidance, which was motivated by HUD’s original charge of discrimination against Facebook in 2019 and President Biden’s 2023 Executive Order on the Safe, Secure, and Trustworthy Development and Use of AI. They explore how the guidance shifts the focus from disparate treatment to disparate impact, and the challenges advertisers and advertising platforms may face in complying with the new guidelines. The episode concludes with a discussion on the potential for regulatory overreach and the possibility of litigation.

In this episode of The Consumer Finance Podcast, Chris Willis is joined by Sheri Adler to discuss the implications of the upcoming change in securities law that shortens the settlement period for broker-dealer transactions from T+2 (two business days after the trade date) to T+1 (one business day after the trade date). This change, effective May 28, 2024, has significant implications for employers who offer equity-based compensation to their employees. Adler provides an overview of the history of the settlement cycle, the reasons behind the shift to T+1, and the impact on tax withholding obligations for equity awards. She also offers practical advice for companies to prepare for this change, including potential adjustments to the calculation of fair market value for withholding purposes.

Troutman Pepper attorneys Brooke Conkle and Chris Capurso discuss the Federal Trade Commission’s “Holder Rule” in the third of five special episodes devoted to auto finance issues. Although the Holder Rule has been around since the 1970s and is a staple of consumer finance contracts, there have been several recent, important developments. Brooke and Chris hop behind the wheel of this installment to review these developments, the position taken by the FTC and courts, and the potential impacts to dealers and finance companies.