One of the most important questions facing non-bank providers of payments services is whether they are subject to regulation under U.S. state money transmission laws. Though almost all U.S. states regulate money transmitters, there are a number of states that provide exemptions for entities that act as an agent of the payee. While a small… Read More
Tag Archives: Electronic Payments
Are You a Money Transmitter in Vermont?
Posted in Electronic Payments, Regulatory Developments, State RegulatorsThe Banking Department of the Vermont Department of Financial Regulation recently entered into a consent order with a money transmission licensing applicant. The consent order makes it clear that “Vermont does not exempt a payment processor or an agent of a payee from [money transmission] licensure.” Vermont’s position is at odds with the recent trend… 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.
Are You a Money Transmitter in Connecticut? In Hawaii?
Posted in Electronic Payments, Regulatory Developments, State RegulatorsOne of the defining aspects of the payments revolution of the past few years—at least from a regulatory perspective—has been the question of whether a particular payments service is subject to regulation as money transmission. A number of states have determined that under certain conditions, state money transmission licensing laws do not apply to services provided… Read More
Faster Payments Task Force Sets Goals and Recommendations for Faster Payments by 2020
Posted in Electronic Payments, Mobile PaymentsOn July 21, 2017 the Federal Reserve’s Faster Payments Task Force released the Faster Payments Task Force Final Report Part Two. The Final Report is a follow-up to Part One of the Faster Payments Task Force Final Report, which was published in January 2017 and provided an overview of the Task Force’s objectives and a… 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
The NYDFS Finalizes its BitLicense Proposal
Posted in Electronic Payments, State RegulatorsOn June 3, 2015, the New York Department of Financial Services (NYDFS) issued a final rule regarding its “BitLicense” regulatory regime (“Final Rule”). The Final Rule follows an initial proposal from July 2014 and a revised proposal from February 2015 (“Revised Proposal”). At a high level, the Final Rule requires licensing for any person that… Read More
“Firsts” for the World of Virtual Currencies
Posted in Electronic Payments, Regulatory DevelopmentsThere have been two recent virtual currency-related actions worthy of note: (1) the Financial Crimes Enforcement Network (“FinCEN”) announced its first civil enforcement action against a virtual currency exchanger, and (2) the New York Department of Financial Services (“NYDFS”) granted its first license to a Bitcoin exchange. This client alert reviews these recent virtual-currency-related actions and… Read More
When Is “Payment Authorization” the Same as a “Payment”? Seventh Circuit Weighs In
Posted in CFPB, Electronic Payments, MortgageA divided Seventh Circuit found that the Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., requires mortgage servicers to credit online electronic payments on the day the customer authorizes the payment, despite not actually receiving the payment at that time. Fridman v. NYCB Mortg. Co., LLC, No. 14-2220 (7th Cir. Mar. 11,… Read More