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Tag Archives: Credit Cards

CFPB and Card Issuers Resolve ECOA Action Involving Cards Offered in U.S. Territories and Cardholders with Spanish Language Preference

Posted in CFPB, Credit Cards, Disparate Impact, Enforcement Actions, Fair Lending

On August 23, 2017, the CFPB announced the resolution of an administrative action under the Equal Credit Opportunity Act and its implementing regulation, Regulation B, against American Express Centurion Bank and American Express Bank, FSB. In the proceeding, the CFPB alleged the Issuers violated ECOA by (i) offering credit and charge card products and services to… Read More

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

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

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

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: 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

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

EVENT: DOD’s Expanded Military Lending Act Rules

Posted in Credit Cards, Events, Fair Lending, Military Issues

Thursday, September 3, 2015 2:00 p.m. – 3:00 p.m. EDT Please email cbaker@mofo.com to register for this teleconference. On July 22, 2015, the Department of Defense (DOD) published new rules broadening the scope of current rules implementing the Military Lending Act (MLA). The amended rules significantly expand the scope of the MLA provisions by covering… Read More

Department of Defense Adopts Significant Changes to Its Military Lending Act Regulations

Posted in Credit Cards, Fair Lending, Military Issues

On July 22, 2015, the Department of Defense (DOD) published sweeping changes to its rules that implement the Military Lending Act (MLA). The amended rules significantly expand the scope of the MLA provisions by covering both new types of creditors and new credit products, including installment loans and other closed-end credit products and credit cards… Read More

DOD Adopts Sweeping Changes to Rules Implementing Military Lending Act Provisions

Posted in Credit Cards, Fair Lending, Military Issues

On July 21, 2015, the Department of Defense (DOD) adopted sweeping changes to its rules that implement the Military Lending Act (MLA). The amended rules significantly expand the scope of the MLA provisions by covering both new types of creditors and new credit products, including credit cards. The new rule becomes effective on October 1,… Read More

Credit Card Issuer Debt Collection Consent Order: The CFPB’s Latest Rulemaking Through Enforcement Effort

Posted in CFPB, Credit Cards, Enforcement Actions, UDAAP

On Wednesday, July 8, the CFPB announced its latest — and largest — settlement of claims of unfair and deceptive debt collection practices. The OCC and 47 State Attorneys General all were part of the overall settlement. The numbers are significant: $50 million in restitution and $166 million in penalties. The injunctive relief is extensive,… Read More

Financial Services Report – Summer 2015

Posted in Arbitration, CFPB, Credit Cards, Credit Reports, Enforcement Actions, Fair Lending, Investigations, Mobile Payments, Mortgage, Payday Lending, Preemption, Privacy, UDAAP

June is crowded with celebrations. It feels like a Tokyo subway. June is the month of weddings, graduations, flag days, and dad daze. June 15 is the 800th anniversary of the Magna Carta. This month we acclaim Summer Solstice, Gay Pride Month, and National Aquarium Month. And who could forget National Accordion Awareness Month? Seriously?… Read More

CFPB Finalizes Rule Suspending Quarterly Submission of Credit Card Agreements

Posted in CFPB, Credit Cards, Regulatory Developments

On April 15, 2015, the Consumer Financial Protection Bureau (CFPB) announced a final rule (“Final Rule”) that suspends for one year the requirement under the Truth in Lending Act and implemented by Regulation Z that credit card issuers submit their card agreements to the CFPB on a quarterly basis. The Final Rule adopts the February… Read More

CFPB Initiates Second CARD Act Review

Posted in CFPB, Credit Cards

On March 19, 2015, the Consumer Financial Protection Bureau (CFPB) published a notice and request for information (“2015 RFI”) regarding the impact of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), as required by Section 502(a) of the CARD Act. The CARD Act requires that the CFPB conduct this review every… Read More

CFPB Seeks Comments on Consumer Credit Card Market

Posted in CFPB, Credit Cards, UDAAP

On Tuesday, March 17, the Consumer Financial Protection Bureau (CFPB) announced a “Request for Information Regarding Credit Card Market.” It follows the 2009 CARD Act’s requirement that the CFPB conduct a review of the consumer credit market every two years. This time, the Bureau is focused on: The continuing impact of the CARD Act on… Read More