Proposed change would expand BSA definition of “money” to include virtual currency. The Financial Crimes Enforcement Network (“FinCEN”) and the Federal Reserve Board (“Board”) have requested comment on an important proposed new rule that would amend the “Recordkeeping Rule” and “Travel Rule” under the Bank Secrecy Act (“BSA”) and expand them significantly. … Continue Reading
Merchant cash advance providers move to dismiss FTC lawsuit
By Alan S. Kaplinsky on
The defendants in the lawsuit filed by the FTC in August 2020 in a New York federal district court against two merchant cash advance providers and their chief executive officer and president for alleged unfair and deceptive conduct in violation of Section 5 of the FTC Act have filed a motion to dismiss. … Continue Reading
Massachusetts federal court stays effective date and enjoins enforcement of HUD final rule revising FHA disparate impact standards; 2 other lawsuits filed challenging rule
By Richard J. Andreano, Jr. on
On October 25, a Massachusetts federal district court entered a preliminary injunction staying and postponing the effective date of the final rule issued by HUD last month (“2020 Rule”) revising its 2013 Fair Housing Act disparate impact standards (“2013 Rule”). The order also enjoins HUD from enforcing the 2020 Rule and keeps the 2013 Rule in place until further order of the court. … Continue Reading
Massachusetts Attorney General Moves to Dismiss Lawsuit Challenging Its Emergency Debt Collection Regulations
By Christine Emello on
Posted in Debt Collection, Litigation and Court Decisions
On October 23, 2020, Massachusetts Attorney General Maura Healey filed a motion to dismiss in ACA International v. Maura Healey based on mootness. The lawsuit challenges the state’s emergency regulations that placed a ban on outbound collection calls. The emergency regulations were promulgated in March 2020, ACA International filed its lawsuit in April 2020, and a temporary restraining order restricting the Attorney General’s office from enforcing the ban on outbound collection calls was issued on May 6, 2020.… Continue Reading
California’s Check Seller, Bill Payer and Proraters Law Expanded to Require non-California Domiciled Debt Settlement Providers to be Licensed and Comply with Substantive Provisions
By Elanor A. Mulhern on
Among the suite of consumer protection bills signed into law last month by California Governor Gavin Newsom is AB 2524. The bill, as enacted, is a less-expansive version of an assembly bill that would have created an entirely new and broad system of regulation over debt settlement companies through amendments to the Check Sellers, Bill Payers and Proraters Law.… Continue Reading
California expands translation requirement for consumer contracts
By Daniel C. Fanaselle on
Posted in Regulatory and Enforcement, State Regulation
On September 25, 2020, California Governor Gavin Newsom signed several consumer protection bills, including AB 3254, which extends the right to receive a translated version of certain consumer contracts to nonparty signatories, such as guarantors or cosigners.
Under existing law, a business negotiating a covered contract in Spanish, Chinese, Tagalog, Vietnamese, or Korean (the five most common non-English languages spoken in California) must provide the consumer with a translated version of the contract. … Continue Reading
CFPB files amicus brief in Third Circuit FDCPA case in support of debt collector
The CFPB filed an amicus brief in Hopkins v. Collecto, Inc., an appeal before the U.S. Court of Appeals for the Third Circuit, in support of the debt collector’s position that it did not violate the FDCPA by sending the plaintiff a letter that included an itemization of the plaintiff’s debt that indicated “$0.00” was owed in interest and collection fees.… Continue Reading
CFPB issues Section 1033 ANPR
By John L. Culhane, Jr. on
Posted in CFPB, Regulatory and Enforcement
The CFPB has issued an Advance Notice of Proposed Rulemaking in connection with its rulemaking to implement Section 1033 of the Dodd-Frank Act. Section 1033 requires consumer financial services providers to give consumers access to certain financial information. Comments on the ANPR will be due no later than 90 days after the date the ANPR is published in the Federal Register.… Continue Reading
FTC Shuts Down Debt Collector as Part of “Operation Corrupt Collector”
By Ballard CFS Group on
A Georgia federal district court has entered a temporary restraining order against a Georgia-based debt collection operation in response to a complaint filed by the Federal Trade Commission.
According to the complaint, the debt collection operation engaged in a variety of illegal debt collection practices, including:
- “Masquerading” as law-enforcement officials, government officials or attorneys.
This week’s podcast: A close look at the OCC’s “true lender” proposal
By Barbara S. Mishkin on
After reviewing the legal foundation for federal preemption of state law limits on interest, we discuss the OCC’s proposed approach for determining when a bank is the “true lender” in programs with non-bank agents, our arguments in support of the proposal made in our comment letter to the OCC, key arguments made in support of or against the proposal by other commenters, the OCC’s likely next steps, and the 2020 election’s potential impact.… Continue Reading