On October 5, the Consumer Financial Protection Bureau issued its much anticipated final rules regulating prepaid card accounts. The final rules follow the proposed rules that the Bureau issued in December 2014, and are mostly unchanged from the proposed rules. The new rules apply to “prepaid accounts,” which the Bureau defines as accounts that are
CFPB Orders First National Bank of Omaha to Pay $32 Million for Credit Card Add-On Products
On August 25, the Consumer Financial Protection Bureau ordered First National Bank of Omaha to pay more than $32 million for alleged unlawful credit card practices related to add-on products and services. In addition to a penalty of $4.5 million, the bank must provide $27.75 million in relief to nearly 257,000 consumers.
The CFPB’s order
Join Us at ACI’s 20th Advanced Global Legal and Compliance Forum on Privacy & Security of Consumer and Employee Information
We are pleased to announce that Troutman Sanders partner Ron Raether will be a featured speaker at the American Conference Institute’s 20th Advanced Global Legal and Compliance Forum on Privacy & Security of Consumer and Employee Information, taking place October 13-14 in San Francisco.
Ron will participate on a panel entitled “Big Data in
LendUp to Pay $6.3M in CFPB-California Deal
On September 27, LendUp, an online payday lending company based in San Francisco, entered into a Consent Order with the Consumer Financial Protection Bureau and the California Department of Business Oversight over allegations that LendUp violated the Consumer Financial Protection Act and Regulation Z of the Truth In Lending Act by
NY Proposes Regulations Requiring Financial Services Companies to Implement Cyber Security Measures
On September 13, the New York Department of Financial Services issued proposed regulations that would require banks, insurance companies, and other financial services institutions to establish and maintain a cybersecurity program and to take other measures to protect against data breaches and cyber attacks.
Among the planned requirements, regulated financial institutions will be required to
FTC and Florida Settle with Defendants Involved in Alleged Telemarketing Debt Relief Scam
Nine months after filing an amended complaint, the FTC and Florida Attorney General have filed papers seeking entry of agreed permanent injunctions and monetary judgments against numerous defendants involved in an alleged nationwide debt relief telemarketing scam. The proposed settlements resolve allegations that the defendants violated the FTC Act, the Telemarketing Act, the Telemarketing
Troutman Sanders Publishes Regulatory Report for Payment Processors
Troutman Sanders’ Regulatory and Enforcement practice published its first Regulatory Report for Payment Processors in September. The report includes the feature article “Getting Your Legal House in Order: Key Considerations for Selling Your Payment Processing Business,” written by Tyler Dempsey and Cot Eversole.
The report also features several recent regulatory and enforcement updates affecting
Federal Court Finds for CFPB in Tribal Lending Case
In an opinion issued in a case previously discussed on this blog, a federal district court has found that a California loan company violated federal law by issuing high-interest loans through a separate company based on tribal lands. The company made the loans to consumers in states where the usury law would ordinarily bar the
Recent CFPB Supervisory Highlights Address FCRA Compliance Issues
The Consumer Financial Protection Bureau has continued to address FCRA-related compliance issues in its most recent Supervisory Highlights publications from March and June 2016. The Supervisory Highlights once again reiterate the importance of FCRA compliance for a broad spectrum of FCRA-regulated entities, including mortgage originators, furnishers of consumer information, and nationwide specialty consumer reporting agencies
CFPB Introduces New Protections for Borrowers
On August 4, 2016, the CFPB issued its final mortgage servicing rule pursuant to Regulation X of the Real Estate Settlement Procedures Act (RESPA) and Regulation Z of the Truth in Lending Act (TILA). The final rule provides greater foreclosure protections to borrowers and requires further transparency between borrowers and mortgage servicers. The final rule