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Category Archives: Credit Cards

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CFPB Proposes Changes to Prepaid Accounts Rule

Posted in CFPB, Credit Cards, Regulatory Developments

On June 15, 2017, the CFPB released proposed revisions to its final Prepaid Accounts Rule. The Final Rule was published in November 2016 and was subsequently amended to delay the general effective date by six months, to April 1, 2018. The CFPB is seeking comments on proposed revisions to the Final Rule, as well as… Read More

Financial Services Report – Summer 2017

Posted in Add On Products, Arbitration, CFPB, Credit Cards, Credit Reports, Enforcement Actions, Fair Lending, Foreclosure, Investigations, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, Student Lending

Summer blockbuster season is officially upon us. Have you seen Wonder Woman yet? What about Guardians of the Galaxy Part 2? It’s déjà vu all over again with Baywatch, Pirates of the Caribbean, Alien, Planet of the Apes, Transformers, Cars, Spider Man, and more Inconvenient Truths from Al Gore all coming to a theatre near… Read More

Consumer Advisory Board – CFPB Encourages Credit Card Companies to Consider Zero-Interest Promotions in Place of Deferred-Interest Programs

Posted in CFPB, Credit Cards

On June 8, 2017, the CFPB held a Consumer Advisory Board meeting, at which CFPB Director Richard Cordray discussed deferred-interest products. The CFPB also included in a press release a sample letter that Director Cordray sent to “top retail credit card companies” expressing concern about their use of deferred-interest programs and encouraging them to consider… Read More

Supreme Court “Expresses” Unanimous View That Credit Card Disclosure Rules Regulate Speech

Posted in Credit Cards, State Regulators

On March 29, 2017, the U.S. Supreme Court held that a New York law restricting the way merchants may communicate prices to their customers regulates speech and, thus, is subject to review under the First Amendment. Specifically, the Court held that New York General Business Law § 518 (“Section 518”) should not be viewed as regulating… Read More

Financial Services Report – Spring 2017

Posted in Arbitration, CFPB, Credit Cards, Credit Reports, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Investigations, Military Issues, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, Student Lending

In like a lion, out like a lamb—it works for weather; does it work for new administrations? We’ll have to wait and see. We’ll have to wait and see about the length of CFPB Director Richard Cordray’s tenure and the fate of Dodd-Frank, as it appears the Trump administration is focusing on other priorities. So… Read More

CFPB Initiates Third CARD Act Review

Posted in CFPB, Credit Cards

On March 10, 2017, the CFPB published a Request for Information (RFI) regarding the consumer credit card market. In accordance with Section 502(a) of the Credit Card Accountability Responsibility and Disclosure Act of 2009, the Bureau conducts a biennial review of the consumer credit card market by soliciting public comment and feedback. The CFPB uses… Read More

CFPB Proposes Delayed Effective Date of Prepaid Accounts Rule, Releases Short-Form Disclosure Guide

Posted in CFPB, Credit Cards, Regulatory Developments

On March 9, the CFPB announced in a blog post a proposal to delay the effective date of the final rule on prepaid accounts (Final Rule) for six months to April 1, 2018. The Bureau also released a guide for preparing the short-form disclosure required under the Final Rule. Read our client alert.

The Madden Saga Continues: On Remand, Madden Survives Summary Judgment and District Court Certifies Class

Posted in Credit Cards, State Regulators

On February 27, 2017, the U.S. District Court for the Southern District of New York in part denied a renewed motion by Midland Funding, LLC (“Midland”) to dispose of claims brought by Saliha Madden (“Madden”) under the Fair Debt Collection Practices Act and the New York General Business Law. The Order also certified two classes… Read More

Financial Services Report – Winter 2016

Posted in Arbitration, Auto Lending, CFPB, Credit Cards, Disparate Impact, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Military Issues, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, UDAAP

Hope you survived all of those awkward Thanksgiving holiday conversations—amazing how divided people are on whether the court got it right in the PHH case, isn’t it? So on we go into the holiday season, while visions of Dodd-Frank repeal dance in our heads. No long winter’s nap for the CFPB, not with the inauguration… Read More

CFPB Finalizes Sweeping Prepaid Account Rule

Posted in CFPB, Credit Cards, Regulatory Developments

On October 5, 2016, the CFPB issued its long-awaited final rule to further regulate prepaid card products, or “prepaid accounts” (the “Final Rule” or “Rule”). This alert identifies key provisions of the Final Rule addressing scope, disclosures, error resolution and liability, and provisions regarding so-called “hybrid credit-prepaid cards.” The Rule generally takes effect on October… Read More

Financial Services Report – Fall 2016

Posted in Add On Products, Arbitration, CFPB, Credit Cards, Credit Reports, Disparate Impact, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Military Issues, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, UDAAP

So much for summer! The weather is cooling, the kids are back to school, and we better not see you wearing white so long after Labor Day! For those of you having a little trouble getting back in the swing of things, we thought we’d lead with just a few of the animals making headlines… Read More

CFPB Levies Largest Civil Money Penalty in Agency History, Alleges “Abusive” Conduct

Posted in CFPB, Credit Cards, Enforcement Actions

On September 8, 2016, the CFPB, the OCC, and the City and County of Los Angeles entered into a Consent Order with Wells Fargo, with civil money penalties totaling $185 million. The CFPB’s portion of those penalties is $100 million, which is the largest fine the Bureau has imposed since opening its doors in July… Read More

#ThrowbackThursday: Summary of Final CARD Act Clarifications

Posted in Credit Cards, Regulatory Developments

In April 2011, Morrison & Foerster published the client alert “Summary of Final CARD Act Clarifications.” Summary: On March 18, 2011, the Federal Reserve Board (“FRB”) issued a final rule to clarify certain recent amendments to Regulation Z, particularly those implementing the Credit Card Accountability Responsibility and Disclosure Act of 2009 (“CARD Act”). While the… Read More

New Agency Guidance on Applying CIP Requirements to Prepaid Cardholders

Posted in Credit Cards, Regulatory Developments

In response to continuing concerns about the vulnerability of prepaid cards to criminal and terrorist abuse, five regulators issued interagency joint guidance on March 21 clarifying bank obligations to identify prepaid card accountholders under the existing regulations implementing the “Customer Identification Program” or “CIP” requirements of the USA PATRIOT Act. The Agencies intend the guidance… Read More

Financial Services Report – Spring 2016

Posted in Arbitration, Auto Lending, CFPB, Credit Cards, Credit Reports, Disparate Impact, Electronic Payments, Enforcement Actions, Fair Lending, Foreclosure, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, Regulatory Developments, State Regulators, UDAAP

Why another law firm newsletter? Over ten years ago, Will Stern answered that question in the first Editor’s Note of the first Financial Services Report. Some things have changed since then—we no longer print and mail paper copies, and we report on issues that were not even a twinkle in anyone’s eye back then (the… Read More

#ThrowbackThursday: Federal Reserve Board Issues Final CARD Act Rule on Penalty Fees and Rate Reevaluations

Posted in Credit Cards, Regulatory Developments

In June 2010, Morrison & Foerster published the client alert “Federal Reserve Board Issues Final CARD Act Rule on Penalty Fees and Rate Reevaluations.” Summary: Adding yet another layer of credit card regulation, the Federal Reserve Board issued a final rule to implement the reasonable penalty fee and rate reevaluation provisions of the “Credit Card… Read More

#ThrowbackThursday: UDAP Final Rules and Board Regulatory Actions

Posted in Credit Cards, Regulatory Developments, UDAAP

Originally published as a Morrison & Foerster client alert in December 2008. UDAP Final Rules The National Credit Union Administration (“NCUA”) approved a joint final rule addressing unfair or deceptive acts or practices (“UDAP”) relating to credit cards written by the Board of Governors of the Federal Reserve System (“Board”), the Office of Thrift Supervision… Read More

CFPB Releases Second CARD Act Report

Posted in CFPB, Credit Cards

On December 3, 2015, the Consumer Financial Protection Bureau (“CFPB”) released its second biennial report on the consumer credit card market (“Report”), as required by the Credit Card Accountability Responsibility and Disclosure Act. The Report outlines the results of the CFPB’s most recent study of the credit card market, which included a public request for… Read More

Financial Services Report – Winter 2015

Posted in Add On Products, Arbitration, Auto Lending, CFPB, Credit Cards, Enforcement Actions, Fair Lending, Indirect Auto Lending, Military Issues, Mobile Payments, Mortgage, Payday Lending, Privacy, Regulatory Developments, Student Lending, UDAAP

We are a full service newsletter, so we offer these can’t-miss Christmas gift ideas for the hard-to-please. Hoverboards are the “It” gift this season, but what about all the poor souls who don’t own one? We’ve devised a remote that lets you seize control from a distance and slam the thing in reverse, toggle forward,… Read More

#ThrowbackThursday: Sweeping Prepaid Card Proposal Issued by CFPB

Posted in CFPB, Credit Cards, Regulatory Developments

In November 2014, Morrison & Foerster published the client alert “Sweeping Prepaid Card Proposal Issued by CFPB.” Summary: Today, the CFPB issued its long-awaited proposed rule to further regulate prepaid card products (the “Proposed Rule”). The Proposed Rule was the topic of discussion at a field hearing in Wilmington, Delaware, which featured remarks from CFPB… Read More

Members of Congress Recommend Changes to the CFPB’s Proposed Prepaid Account Rule

Posted in CFPB, Credit Cards, Regulatory Developments

Even though the comment period to the CFPB’s Notice of Proposed Rulemaking for Prepaid Accounts (the “Proposed Rule”) closed in March, 43 Members of Congress (42 Republicans and 1 Democrat) have sent a letter to Director Cordray with four recommendations for changing the Proposed Rule. The Congressional letter states that prepaid cards are “safe and… Read More

One-Two Punch: CFPB Indirect Auto and Add-On Product Orders

Posted in Auto Lending, CFPB, Credit Cards, Enforcement Actions

The CFPB announced two new enforcement action settlements on September 28: one for alleged discriminatory auto loan pricing and the other for alleged deceptive credit card add-on product marketing practices. Indirect Auto Settlement: The joint CFPB and DOJ auto-lending enforcement action continues the Bureau’s campaign to regulate auto dealer markups via lender enforcement actions. In… Read More

#ThrowbackThursday: CFPB & DOJ Consent Orders with Former GE Capital Retail Bank: Something Old and Something New

Posted in CFPB, Credit Cards, Enforcement Actions, UDAAP

In June 2014, Morrison & Foerster published the client alert, “CFPB & DOJ Consent Orders with Former GE Capital Retail Bank: Something Old and Something New.” Summary: Yesterday, the CFPB announced a $225 million settlement of two major credit card enforcement matters with Synchrony Bank, formerly known as GE Capital Retail Bank. First, the “Add-On… Read More