Weekly Fintech Focus

  • The CFPB shuts down an online lender for repeated failures related to deceptive marketing claims.
  • Some major credit bureaus announce plans to incorporate BNPL installment plans in credit reports.
  • FTC Chair Lina Khan provides comments on the CFPB’s inquiry into big tech platforms’ engagement in payments and financial services.

Continue Reading Fintech Legal Report – Week of January 7, 2022

On December 7, 2021, the U.S. Treasury Department’s Financial Crimes Enforcement Network issued a highly-anticipated proposed rule that would implement key provisions of the Corporate Transparency Act, a law enacted earlier this year as part of the Anti-Money Laundering Act of 2020.

Click here to view the update.

Under the leadership of its new Director, Rohit Chopra, the Consumer Financial Protection Bureau (CFPB) appears poised to take a more active supervisory and enforcement posture, including with respect to Fintech – a sector that has not historically been a focus for the agency.  Since taking office on October 12th, Director Chopra has

Weekly Fintech Focus

  • A buy-now pay-later company faces a potential class action alleging it hid the risk of overdraft and NSF fees from its users.
  • Leaders of the CFPB’s Fair Lending Office published an article encouraging the use of special purpose credit programs to effect racial justice.
  • The FDIC is opening applications for a tech sprint to reach the unbanked.
  • The FSB responds to comments on its recent discussion paper related to outsourcing and third-party service providers.

Continue Reading Fintech Week in Review: Week of June 25, 2021

Weekly Fintech Focus

  • Federal financial regulators extend the deadline for responding to its request for information about financial institutions’ use of AI.
  • The CFPB issued FAQs on electronic funds transfers under EFTA and Regulation E to address issues related to fraud and private network rules.
  • The Federal Reserve proposed a rule to update the Durbin Amendment/Reg. II to ensure two debit networks are available, including for card-not-present transactions.
  • The Federal Reserve proposed a rule to apply Regulation J to FedNow transactions and to establish rules for the FedNow Service.
  • CSBS seeks comment on its proposed nationwide licensing framework for MSBs.

Continue Reading Fintech Week in Review: Week of June 11, 2021

Weekly Fintech Focus

  • The Federal Reserve seeks comment on new guidelines for Fed Regional Banks to consider when deciding whether to extend Fed membership or services to nontraditionally chartered entities.
  • California DFPI enters a settlement with a fintech company to stop the use of the word “bank” in its name, website URL, and advertising, and requires clear disclosure of the fintech’s bank partnership.

Continue Reading Fintech Week in Review: Week of May 7, 2021

Weekly Fintech Focus

  • FDIC discusses its fair lending activities in the most recent edition of its Consumer Compliance Supervisory Highlights.
  • US and EU engage in a joint regulatory forum to discuss international coordination on financial regulation and operational resiliency.
  • BCBS publishes its principles for operational resilience for banks, including a focus on third-party outsourcing relationships with financial technology companies.
  • Financial regulators seek comment on model risk management guidance.
  • CSBS seeks comment on a revamp of the nationwide licensing system.

Continue Reading Fintech Week in Review: Week of April 16, 2021

Weekly Fintech Focus

  • Federal financial regulators issue an RFI to better understand financial institution usage of AI models and its implications on current regulations.
  • CFPB rescinds policy statements that provided regulatory flexibility in response to pandemic challenges.
  • National Futures Association issues regulatory outsourcing guidance.
  • Lina Kahn announced as nominee for FTC commissioner position.
  • FinCEN Director meets with a number of groups to discuss SAR filing.
  • Prepared Remarks of FinCEN Director delivered at the Florida International Bankers Association AML Compliance Conference
  • CFPB faced many more consumer complaints in 2020 than in the past.
  • CSBS working with a number of states to develop a single fintech exam.
  • An earned wage access company settled allegations of its services causing bank overdraft and insufficient fund fees.
  • The UK FCA issues a feedback statement on open finance.

Continue Reading Fintech Week in Review: Week of April 2, 2021

Weekly Fintech Focus

  • In response to pandemic challenges, card networks agree to delay merchant fee hikes that would have taken place next month.
  • E-commerce activities continue to grow and are projected to reach $1 trillion in revenue by next year.
  • The BIS publishes a paper urging a global rethink on how to regulate big tech companies engaged in financial services to address systemic risk.
  • Fintech trade groups launch to address issues like financial inclusion and regulatory approaches to fintech engagement in the financial services industry.
  • Regulators issue the first enforcement action directly referencing a bank’s role in serving marijuana-related business customers.

Continue Reading Fintech Week in Review: Week of March 19, 2021