On November 13, 2014, the Consumer Financial Protection Bureau (“CFPB”) issued a Notice of Proposed Rulemaking (“NPR”) proposing new federal rules for prepaid accounts. The NPR contains extremely detailed requirements regarding required disclosures, consumer protections, and credit features. Moreover, the products covered by these requirements are extremely broad, encompassing not […]
Banking Update
FinCen Proposes Expanded CDD Requirements for Financial Institutions
On August 4, 2014, the Financial Crimes Enforcement Network (“FinCen”) issued a notice of proposed rulemaking (“NPRM”) regarding the expansion of certain customer due diligence (“CDD”) requirements for, among other entities, financial institutions. Specifically, in its NPRM, FinCen proposed a requirement for financial institutions to identify and verify the identity […]
8th Circuit Disagrees with 6th Circuit – Spouse-Guarantor Cannot Assert ECOA Claim as an Affirmative Defense to Collection Action
The Eighth Circuit Court of Appeals recently held that a spouse-guarantor cannot use the Equal Credit Opportunity Act (“ECOA”) as an affirmative defense to a collection action based on their guaranty. I. ECOA Prohibits Discrimination Against “Applicants” Based On Marital Status A. ECOA bans creditor from requiring a spouse to […]
Highlights from Money 20/20
Money 20/20, a leading payments conference, concluded last week after more than 7,000 payments industry representatives gathered to discuss the rapidly evolving payments landscape. A wide array of emerging issues were discussed and debated, a few of which we would like to highlight here: Apple Pay. Much fanfare accompanied the […]
CFPB Announces Proposed Rules for Prepaid Card Products
The Consumer Financial Protection Bureau (“CFPB”) announced early this morning that it is proposing new federal rules for the prepaid market in a Notice of Proposed Rule Making (“NPRM”) to be released later today. The NPRM will affect a variety of prepaid products and will include provisions requiring consumer protections […]