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 transmitters and payment services providers.… Continue Reading
Payments
Senate Banking Committee to hold June 30 hearing on digitization of money and payments
By Barbara S. Mishkin on
Posted in Payments, Regulatory and Enforcement
The Senate Banking Committee will hold a hearing tomorrow, June 30, titled, “The Digitization of Money and Payments.”
The witnesses will include Charles Cascarilla, Chief Executive Officer and Co-Founder, Paxos, and Professor Nakita Q. Cuttino, Visiting Assistant Professor of Law, Duke University School of Law.
This week’s podcast: A discussion of alternative payments
By Barbara S. Mishkin on
Posted in Payments, Regulatory and Enforcement
In this podcast, we examine the features of different forms of alternative payments, factors driving consumer demand, contractual and other issues in business transactions involving such payments, including the role of gateways and payment aggregators.
Click here to listen to the podcast.… Continue Reading
House Financial Services Committee to hold Sept. 26 hearing on real-time payments
By Alan S. Kaplinsky on
Posted in Payments, Regulatory and Enforcement
The House Financial Services Committee’s Task Force on Financial Technology will hold a hearing entitled “The Future of Real-Time Payments,” at 2:00 p.m. on Thursday, September 26, 2019. There will be a live webcast of the hearing.
The memo from the FSC Majority Staff indicates the hearing will focus on the development of a real-time payments (“RTP”) system and the risks, regulation, and market features of any future payments system.… Continue Reading
The Fed’s entry into real-time payments: commercial and contractual implications
By Barbara S. Mishkin on
Last month, the Federal Reserve Board announced its plans to develop a real-time payments (RTP) service to be offered by the Federal Reserve Banks to directly support faster payments.
Three members of Ballard Spahr’s Consumer Financial Services Group with extensive experience negotiating complex payments transactions for some of the world’s largest retailers and financial institutions have authored an article in which they discuss the expanding adoption of RTP as a standard for payments transactions, including the commercial and contractual issues that may arise as a result.… Continue Reading
Fed announces plans to develop real-time settlement service to support faster payments
By Barbara S. Mishkin on
The Federal Reserve Board has determined that the Federal Reserve should take the following two actions:
- Develop a new interbank 24x7x365 real-time gross settlement (RTGS) service to be offered by the Federal Reserve Banks to directly support faster payments and to be called the FedNow Service
- Explore expanding the hours of the Fedwire Funds Service and the National Settlement Service (NSS), up to 24x7x365 to support liquidity management in private-sector RTGS services for faster payments
The Fed’s determination is set forth in a notice and request for comment issued on August 5, with comments to be due on or before 90 days after the date the notice is published in the Federal Register. … Continue Reading
FDIC 2018 Consumer Compliance Supervisory Highlights focuses on overdraft, RESPA, Regulation E, deferment, and finance charge calculation exam findings
By Ballard CFS Group on
Last week, the FDIC published its Consumer Compliance Supervisory Highlights that provides observations about its consumer compliance supervision activities in 2018. Importantly, the highlights include anonymized 2018 exam findings regarding violations of consumer protection laws and other information to help financial institutions stay abreast of issues and trends identified during exams and assist them in mitigating potential risks.… Continue Reading
FTC permanently bans payment processor for violating 2009 order requiring monitoring of merchant clients
By Barbara S. Mishkin on
A payment processor and its individual owner have entered into a settlement with the FTC to settle charges that they violated a 2009 federal district court order that required them to review and monitor their merchant clients to ensure that the merchants were not engaged in deceptive or unfair practices. The order is a stark reminder of the risks to payment processors of failing to implement adequate policies and procedures designed to avoid establishing or maintaining relationships with disreputable merchants.… Continue Reading
Colorado AG issues administrator’s opinion on what constitutes collateral with respect to alternate charge consumer installment loans
By Patrick G. Compton on
In a January 4 posting, Colorado’s outgoing Attorney General, Cynthia Coffman, issued an administrator’s opinion as to whether Section 5-2-214 of the Uniform Consumer Credit Code prohibits supervised lenders from utilizing post-dated checks, debit authorizations, and other forms of up-front payment authorization, as security for payment of “alternate charge” consumer installment loans.… Continue Reading
Pew Charitable Trusts to host event on Ohio payday lending law
By Alan S. Kaplinsky on
This afternoon, Pew Charitable Trusts will host an event in Washington, D.C. focusing on Ohio’s Fairness in Lending Act. Enacted in July 2018, the Act places new limitations on payday loans including an interest rate cap, a limit on the total cost of a loan, and other structural restrictions. The Act is viewed as a significant victory for consumer advocates with the potential to be followed through legislation in other states or through ballot initiatives. … Continue Reading