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Tag Archives: financial services

Attorneys General Push Against OCC’s Attempts to Codify “Valid When Made” Rule

Posted in Credit Cards, Regulatory Developments

On 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.

California Regulator Reiterates that Credit Sales Cannot be Used to Evade Financing Law

Posted in Regulatory Developments

In two recent actions, the California Department of Business Oversight (DBO) addressed whether companies that purchase retail installment contracts should be considered bona fide purchasers of credit sales or whether those transactions should be considered loans subject to the California Financing Law (CFL). In doing so, the DBO reiterates existing case law and sets forth… Read More

Are You a Money Transmitter in Massachusetts? In Rhode Island?

Posted in Regulatory Developments

As we enter 2020, the payments and money transmission regulatory landscape continues to evolve on a state-by-state basis.  Newly adopted regulations in Massachusetts affirm that “agent of a payee” transactions meeting certain criteria, as well as funds transfer services provided to business customers, are not subject to regulation under the state’s money transmission law. Additionally,… Read More

Long Awaited HVCRE Rule Clarifies Capital Treatment of Certain Real Estate Loans

Posted in Regulatory Developments

On November 19, 2019, the federal banking agencies issued a final rule that incorporates a new definition of an “HVCRE exposure” into the U.S. regulatory capital rules. The new definition is substantially that of an “HVCRE ADC loan” from Section 214 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, enacted into law on… Read More

After Madden, OCC and FDIC Propose to Reaffirm “Valid When Made” Rule

Posted in Regulatory Developments

The Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation have taken steps to reaffirm the “valid when made” doctrine in response to Madden. We discuss the key takeaways from the agencies’ proposed rules and how this will affect all national banks and state banks. Read our client alert.

Is Payroll Processing Money Transmission? New York May Be Weighing In

Posted in Electronic Payments, Regulatory Developments, State Regulators

It seems like a natural progression for a company that provides any sort of payments-related information processing to migrate from handling data about payments to seeking to handle the payments themselves. But it can be a challenge for any company, particularly a younger one, to determine whether a payments-related service it wishes to offer —… Read More

Uncharted Waters: California Regulator Issues Draft Commercial Financing Disclosure Regulation

Posted in Regulatory Developments

On July 26, the California Department of Business Oversight (DBO) issued a draft regulation and draft disclosures to implement the state’s first-of-its-kind commercial financing disclosure law enacted last year. With this draft regulation, the DBO wades into uncharted waters in implementing the first law requiring disclosures of key terms in connection with certain commercial financings by non-banks. Read our client… Read More