As we reported, Acting Comptroller of the Currency Brian Brooks has previewed the OCC’s plans to introduce another special purpose national bank charter that would give payment companies a nationwide servicing platform and federal preemption of state laws regarding licensing and regulation of money transmitters and payment services providers. Acting Comptroller Brooks’ statements drew
Fintech
Three-state attack on the OCC’s “Madden fix” rule
By Jeremy T. Rosenblum & James Kim on
As previously reported, the OCC recently adopted a final rule (the “Madden fix”) designed to resolve the legal uncertainty created by the Second Circuit’s decision in Madden v. Midland Funding, which held that a non-bank that purchased charged-off loans from a national bank could not charge the same rate of interest on…
NYDFS files brief with Second Circuit in OCC’s appeal from district court judgment in lawsuit challenging fintech charter
By Alan S. Kaplinsky on
The New York Department of Financial Services (DFS) has filed its opening brief with the Second Circuit in the OCC’s appeal from the district court’s final judgment in DFS’s lawsuit challenging the OCC’s issuance of special purpose national bank (SPNB) charters to non-depository fintech companies.
In May 2019, the district court denied the OCC’s motion…
OCC Previews Plans to Introduce Special Purpose National Bank Charter for Payment Companies
By Mindy Harris on
In recent interviews including a podcast with the ABA Banking Journal reported by Forbes, Acting Comptroller of the Currency Brian Brooks previewed the OCC’s plans to introduce another special purpose national bank charter that would give payment companies a nationwide servicing platform and federal preemption of state laws regarding licensing and regulation of money…
FDIC issues “Madden fix” rule addressing state bank loan interest rates after assignment
By Glen P. Trudel & James Kim on
The FDIC has issued its widely anticipated final rule resolving the uncertainty caused by the Second Circuit’s Madden v. Midland Funding decision. Madden held that a non-bank entity that purchased charged-off loans from a national bank could not charge the same rate of interest on the loans as the national bank was able to charge…
FDIC extends comment period on proposed rule for approval of ILC deposit insurance applications
By James Kim & Scott A. Coleman on
The FDIC has extended by 30 days the comment period on its proposed rule setting forth the conditions it would impose and the commitments it would require to approve a deposit insurance application from an industrial bank or industrial loan company (collectively, ILC) whose parent company is not subject to consolidated supervision by the Federal…
OCC files brief with Second Circuit in appeal from district court judgment in NYDFS lawsuit challenging fintech charter
By Jeremy T. Rosenblum on
The OCC has filed its opening brief in its appeal to the Second Circuit from the district court’s final judgment in the lawsuit filed by the New York Department of Financial Services (DFS) seeking to block the OCC’s issuance of special purpose national bank (SPNB) charters to non-depository fintech companies.
In May 2019, the district…
FDIC issues proposed rule for approval of ILC deposit insurance applications
By James Kim & Scott A. Coleman on
The FDIC has issued a proposed rule setting forth the conditions it would impose and the commitments it would require to approve a deposit insurance application from an industrial bank or industrial loan company (collectively, ILC) whose parent company is not subject to consolidated supervision by the Federal Reserve Board (FRB). The proposal is a…
CFPB Symposium on Consumer Access to Financial Records
By Lori J. Sommerfield on
On February 26, 2020, the CFPB held a symposium on Consumer Access to Financial Records and Section 1033 of the Dodd-Frank Act. Section 1033 addresses consumers’ rights to access information about their own financial accounts, and permits the CFPB to prescribe rules concerning how a provider of consumer financial products or services must make a…
CFPB and Utah AG announce joint office hours in Salt Lake City as part of ACFIN
By Alan S. Kaplinsky & Anthony C. Kaye on
The CFPB and Utah AG’s Office have announced that they will hold the first joint office hours as part of the American Consumer Financial Innovation Network (ACFIN). The joint office hours will be held on January 30, 2020 in Salt Lake City, Utah.
The CFPB announced ACFIN’s creation last September, in conjunction with finalizing revisions…