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Tag Archives: state regulators

California Enacts a First-of-Its-Kind Commercial Financing Disclosure Law

Posted in Regulatory Developments, State Regulators

On September 30, 2018, California Governor Jerry Brown signed into law SB 1235, which requires disclosures of key terms in connection with certain commercial financing by non-banks and could impact bank/non-bank arrangements as well. With the passage of the Act, California became the first state to require consumer-style disclosures for commercial financing. The Act is… Read More

Are You a Money Transmitter in California?

Posted in Electronic Payments, Regulatory Developments, State Regulators

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

The 2018 California Consumer Privacy Act: California Scraps Ballot Initiative and Passes Sweeping Data Privacy Regulation

Posted in Privacy, Regulatory Developments, State Regulators

With the passage of the California Consumer Privacy Act of 2018 (AB 375), the United States now has its first truly sweeping privacy regime. On Thursday, June 28, 2018, California Governor Jerry Brown signed into law what is arguably the most expansive privacy legislation in U.S. history. The Act is the product of backroom wrangling… Read More

Are You a Money Transmitter in Vermont?

Posted in Electronic Payments, Regulatory Developments, State Regulators

The 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

South Carolina’s Money Transmission Law Comes into Effect

Posted in Regulatory Developments, State Regulators

Yesterday, the Office of the South Carolina Attorney General issued a press release announcing that it has created a Money Services Division within the AG’s office and that, effective May 14, the Division is accepting applications for licensure under South Carolina’s money transmission law. This law, officially known as the South Carolina Anti-Money Laundering Act,… Read More

Are You a Money Transmitter in Connecticut? In Hawaii?

Posted in Electronic Payments, Regulatory Developments, State Regulators

One 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

Equifax Fallout: NYDFS Acts Again

Posted in Privacy, State Regulators

The massive Equifax breach continues to prompt responses from a wide-range of regulators. While this is not surprising in light of the scale and nature of the incident, a number of regulators are taking more aggressive and more public actions in just a short time following public announcement of the breach. While there is a… 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

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

Are You a “Payment Processor”? Washington State Appears to Significantly Expand Scope of Its Money Transmission Act

Posted in Regulatory Developments, State Regulators

One 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 any particular payments service is subject to regulation as money transmission. State money transmission laws were crafted to address what we would today call “traditional” money transmitters—i.e., major, well-known brands that… Read More

#ThrowbackThursday: Consumer Arbitration Update

Posted in Arbitration, State Regulators

In July 2005, Morrison & Foerster published the client alert “Consumer Arbitration Update.” Summary: A case decided by the California Supreme Court may have marked the end of the use of arbitration as a means of dispute resolution for companies that do business with consumers using standard form contracts.  Now, a company that uses consumer… Read More

NY DFS Signals a Detailed Framework for Cybersecurity Compliance

Posted in Privacy, Regulatory Developments, State Regulators

On November 9, 2015, the New York State Department of Financial Services (“DFS”) sent a letter to a number of state and federal financial regulators signaling that DFS may issue comprehensive cybersecurity regulations for financial institutions subject to DFS’s authority. The stated purpose of the letter was to “spark additional dialogue, collaboration and, ultimately, regulatory… Read More

The NYDFS Finalizes its BitLicense Proposal

Posted in Electronic Payments, State Regulators

On 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

CFPB Intends to Regulate Payday Lenders

Posted in CFPB, Payday Lending, Regulatory Developments, State Regulators

According to a report in The New York Times’ Dealbook, the payday lending regulations the Consumer Financial Protection Bureau is drafting would govern a broader range of short-term loans than some may like, with car title loans and installment loans falling under the guidelines, and would create measures aimed at curbing what the Bureau has… Read More