On September 29, 2021, the Consumer Financial Protection Bureau released its fifth biennial report on the consumer credit card market. The Report summarizes the impact of the Credit Card Accountability Responsibility and Disclosure Act on the consumer credit card market. The Bureau issued the Report pursuant to the CARD Act’s requirement that the CFPB conduct a biennial review of… Read More
Tag Archives: Credit Cards
Attorneys General Push Against OCC’s Attempts to Codify “Valid When Made” Rule
Posted in Credit Cards, Regulatory DevelopmentsOn January 21, 2020, twenty-two State Attorneys General and the Hawaii Office of Consumer Protection submitted a comment letter to the Office of the Comptroller of the Currency in opposition to its proposed rulemaking to resolve the “confusion” stemming from the Second Circuit’s 2015 decision in Madden v. Midland Funding LLC. Read our client alert.
CFPB Initiates Fourth Review of the Consumer Credit Card Market
Posted in CFPB, Credit Cards, Regulatory DevelopmentsOn January 31, 2019, the Consumer Financial Protection Bureau published a Request for Information regarding the consumer credit card market. In accordance with Section 502(a) of the CARD Act, the Bureau conducts a biennial review of the consumer credit card market by soliciting public comment and feedback. In the past, the Bureau has used these… Read More
CFPB Amends Prepaid Accounts Rule and Delays its Effective Date
Posted in CFPB, Credit Cards, Regulatory DevelopmentsOn January 25, 2018, the CFPB finalized amendments to its final Prepaid Accounts Rule, which was published in November 2016. The Bureau stated that the 2018 Amendments finalize revisions proposed in June 2017 “generally as proposed, with certain modifications.” The 2018 Amendments address some of the issues raised by industry and delay the effective date… Read More
Joint and Several Liability for Payment Processor That Facilitated Fraud
Posted in Credit CardsOn December 13, the Eleventh Circuit Court of Appeals affirmed the decision of the U.S. District Court for the Middle District of Florida finding a credit card payment processor jointly and severally liable, under a theory of aiding and abetting, for the full judgment entered against fraudulent telemarketers. While some courts have rejected efforts by… Read More
CFPB Encourages Financial Institutions to Provide Consumers with Greater Control over Payment Methods
Posted in CFPB, Credit Cards, Electronic PaymentsOn November 20, 2017, the CFPB released a November 17, 2017 letter that Director Richard Cordray sent to “the CEO’s of several banks, credit unions, and financial companies” asking that they consider “enabl[ing] consumers to exert greater control over their credit cards, debit cards, and other payment methods.” Read our client alert.
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 LendingOn 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 DevelopmentsOn 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 CardsOn 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 RegulatorsOn 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 CardsOn 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 DevelopmentsOn 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 RegulatorsOn 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, UDAAPHope 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 DevelopmentsOn 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 ActionsOn 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 Proposed CARD Act Clarifications
Posted in Credit Cards, Regulatory DevelopmentsIn November 2010, Morrison & Foerster published the client alert “Summary of Proposed CARD Act Clarifications.” Click here to read the full alert.
#ThrowbackThursday: Federal Reserve Board Issues Final CARD Act Rule on Penalty Fees and Rate Reevaluations
Posted in Credit Cards, Regulatory DevelopmentsIn 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, UDAAPOriginally 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 CardsOn 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 ActionsThe 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, UDAAPIn 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 IssuesThursday, 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 IssuesOn 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