In today’s podcast, which repurposes a recent webinar, we examine the impact, if any, of a landmark opinion rendered by Judge Daniel Domenico of the Federal District Court for the District of Colorado in a case challenging...more
On September 17, 2024, the FDIC board approved a notice of proposed rulemaking that would increase recordkeeping obligations for bank deposits received from third party, non-bank companies that accept those deposits on behalf...more
On September 17, 2024, the FDIC board approved a notice of proposed rulemaking that would increase recordkeeping obligations for bank deposits received from third party, non-bank companies that accept those deposits on behalf...more
9/26/2024
/ Bank Deposits ,
Deposit Accounts ,
FDIC ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
Nonbank Firms ,
Notice of Proposed Rulemaking (NOPR) ,
Proposed Regulation ,
Proposed Rules ,
Recordkeeping Requirements ,
Regulatory Agenda ,
Third-Party
The 1978 landmark opinion in Marquette National Bank v. First of Omaha Service Corp held that under the National Bank Act, a national bank has the right to export the interest rate authorized by the state where the bank is...more
On June 5, 2024, Minnesota Bankers Association and Lake Central Bank (“Plaintiffs”), filed a notice of appeal to the United States Court of Appeals for the Eighth Circuit to appeal the Minnesota federal district court’s April...more
As expected, the Colorado Attorney General and Colorado Uniform Consumer Credit Code Administrator filed their responsive brief in opposition to the plaintiffs’ motion for preliminary injunction filed earlier this month in...more
In February 2024, the Federal Deposit Insurance Corporation (FDIC) entered into consent orders with two banks who partner with fintechs to offer “banking as a service” (BaaS) related to safety and soundness concerns relating...more
4/12/2024
/ AML/CFT ,
Anti-Money Laundering ,
Bank Secrecy Act ,
Banks ,
Consent Order ,
Customer Identification Program (CIP) ,
Enforcement Actions ,
FDIC ,
Financial Institutions ,
Financial Services Industry ,
FinTech ,
Money Laundering ,
Risk Management ,
Terrorist Financing ,
Third-Party ,
True Lender
On April 8, 2024, a Minnesota federal district court dismissed without prejudice the complaint filed by the Minnesota Bankers Association and Lake Central Bank (Plaintiffs) against the Federal Deposit Insurance Corporation...more
In February 2024, the Federal Deposit Insurance Corporation (FDIC) entered into consent orders with two banks who partner with fintechs to offer “banking as a service” (BaaS) related to safety and soundness, compliance with...more
4/10/2024
/ AML/CFT ,
Anti-Money Laundering ,
Bank Secrecy Act ,
Banks ,
Consent Order ,
Customer Due Diligence (CDD) ,
Customer Identification Program (CIP) ,
FDIC ,
Financial Institutions ,
Financial Services Industry ,
FinTech ,
Regulation E ,
Risk Assessment ,
Terrorist Financing Regulations ,
True Lender
On February 5, 2024, several national and Texas banking and business trade groups (Plaintiffs) filed a lawsuit challenging the final regulations (Final Rules) implementing the Community Reinvestment Act of 1977 (CRA) that...more
On February 14, 2024, the Minnesota Bankers Association and Lake Central Bank (the “Plaintiffs”) filed their memorandum in opposition to the Federal Deposit Insurance Corporation’s (FDIC) motion to dismiss their challenge to...more
2/21/2024
/ Administrative Procedure Act ,
Bank Accounts ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Electronic Fund Transfer Act ,
FDIC ,
Financial Institutions ,
Financial Services Industry ,
FTC Act ,
Injunctive Relief ,
Insufficient Funds ,
Motion to Dismiss
On February 15, 2024, Senators Sherrod Brown (D-OH), Jack Reed (D-RI) and Elizabeth Warren (D-MA) sent a letter to Zelle seeking clarification of its reimbursement policy for victims of imposter scams and urging Zelle to...more
2/20/2024
/ American Bankers Association ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Fraud ,
Digital Wallets ,
Electronic Payment Transactions ,
FDIC ,
Financial Institutions ,
Financial Services Industry ,
Financial Transactions ,
Money Services Business ,
Reimbursements ,
Scams ,
Senate Banking Committee ,
Zelle
Last year, we blogged that Zelle was considering possible solutions for P2P customers on the Zelle Network who were the victims of scams. In an August 30, 2023 press release, Zelle announced that it was initiating new safety...more
11/15/2023
/ Consumer Financial Protection Bureau (CFPB) ,
Customers ,
Electronic Fund Transfer Act ,
FDIC ,
Financial Fraud ,
Financial Institutions ,
Financial Services Industry ,
Money Transmitter ,
p2p ,
Payment Processors ,
Peer-to-Peer ,
Regulation E ,
Regulatory Requirements ,
Scams ,
Zelle
The FDIC has filed motion to dismiss the lawsuit filed in July 2023 in a Minnesota federal district against the FDIC and its Chairman seeking to invalidate the FDIC’s supervisory guidance on charging multiple non-sufficient...more
9/25/2023
/ Administrative Procedure Act ,
Dodd-Frank ,
FDIC ,
Federal Reserve ,
Financial Institutions ,
Financial Services Industry ,
Insufficient Funds ,
Motion to Dismiss ,
Supervisory Guidance ,
UDAAP ,
UDAP
A complaint filed on July 20, 2023 in Minnesota federal court seeks declaratory and injunctive relief under the Administrative Procedures Act (APA) against defendants Federal Deposit Insurance Corporation (FDIC) and Chairman...more
7/25/2023
/ Administrative Procedure Act ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Enforcement Actions ,
FDIC ,
Federal Reserve ,
Financial Institutions ,
Financial Services Industry ,
OCC ,
Overdraft Fees ,
Supervisory Guidance ,
Unfair or Deceptive Trade Practices
Minnesota recently enacted the Commerce Omnibus Finance Bill, which includes amendments to several provisions of Minnesota law related to consumer loans and financial institutions....more
7/25/2023
/ Annual Percentage Rate (APR) ,
Consent Order ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Department of Financial Protection and Innovation (DFPI) ,
FDIC ,
Financial Institutions ,
Financial Regulatory Reform ,
Financial Services Industry ,
Guidance Update ,
Money Transmitter ,
New Regulations ,
Omnibus Guidance ,
Short-Term Loans ,
Small Loans ,
True Lender
The OCC has issued a new bulletin and the FDIC has issued new supervisory guidance directed to their supervised institutions to address “authorize positive, settle negative” (APSN) overdraft fee practices. The OCC bulletin...more
A group of five Democratic Senators have sent a letter to the Federal Reserve, OCC, FDIC, and NCUA asking them to take several steps to protect consumers from scams when using Zelle to transfer money....more