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Wire Fraud Scams: What You Need to Know - The Consumer Finance Podcast [Audio]

Please join Consumer Financial Services Partner Chris Willis and his colleagues and fellow Partners Mary Zinsner and Susan Flint as they discuss the current landscape of wire fraud scams in the financial services industry....more

Bank CEOs Testify Before Congressional Committees on Financial Services

On September 21 and 22, chief executives from the nation’s seven largest banks faced questioning before Congress, marking the third time senior bank officers have testified before Congress in the last three years. Senators...more

OCC Closely Watches as Banks and Fintech Partner

On September 6, Acting Comptroller of the Currency Michael Hsu warned that fintech and big techs partnerships and their forays into payment and lending could lead to increased risk for the banking industry. “My sense is that...more

9/14/2022  /  Banking Sector , Banks , FinTech , OCC , Popular

No $500M Windfall for Lenders in Mistaken Wire Transfer Case

On September 8, Second Circuit ruled that lenders must return $500 million to Citibank, which had mistakenly wired the funds to them. The decision vacates a 2021 Southern District of New York ruling, which held that the...more

Banking Groups Challenge CFPB’s RFI on Customer Service

Banking trade groups are challenging a request for information (RFI) issued by the Consumer Financial Protection Bureau (CFPB) regarding customer service at large financial institutions. In a joint letter dated August 22, the...more

Proposed New Data Security Rules Could Prove Duplicative, Forcing Banks to Turn Over Dangerous Amounts of Secured Data

An amendment to the National Defense Authorization Act passed by the House in July would create a “systemically important entity” designation, applying new regulations and offering priority aid to certain critical...more

Citing Uptick in Complaints, CFPB Will Push Banks to Refund More Victims of Money Transfer Scams

As peer-to-peer money transfer services (or cash apps) become more popular, there has been an increase in the number of scams enticing consumers to transfer funds to fraudsters. The law currently provides that the banks that...more

Another Win for Banks: Illinois Federal Court Tosses Wire Fraud Claims

A recent decision out of the Northern District of Illinois should help banks defend against increasingly common claims involving fraudulent wire transfers. In Trivedi v. Bank of America, et al., the district court granted the...more

Ninth Circuit Provides Guidance on Web Scraping

On April 18, the Ninth Circuit issued its opinion in hiQ Labs, Inc. v. LinkedIn Corporation in which the court clarified its position on an important topic: whether the common practice of data “web scraping” can create...more

Complaint Dismissed Where Hacker-Induced Wire Transactions Authorized by Bank’s Customer

A federal district court in New Jersey recently dismissed a complaint against a bank filed by a commercial customer duped by a business email compromise incident. The case involved four wire transfers totaling $1.4 million...more

Texas Supreme Court Holds Administrative Wire Transfer Form Does Not Impose Contractual Duties on Bank

In Cadence Bank, N.A. v. Roy J. Elizondo III, PLLC, the Supreme Court of Texas recently held that an administrative form relied upon by a victim of a fraud scam did not impose contractual obligations on a bank to verify...more

4/7/2022  /  Banking Sector , Banks , Wire Transfers

Supreme Court Parses FAA’s Statutory Language, Limiting Federal Court Jurisdiction Over Arbitration Awards

The U.S. Supreme Court significantly limited the jurisdiction of federal courts to confirm or vacate arbitral awards under Sections 9 and 10 of the Federal Arbitration Act (FAA) in Badgerow v. Walters. The Court confirmed its...more

Senate Bill Introduced to Ban Forced Consumer Arbitration Clauses

U.S. Senator Sherrod Brown (D-OH), chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, has introduced the Arbitration Fairness for Consumers Act. The legislation, introduced on March 7, proposes to...more

Transmission of Consumer Information to Vendor May Constitute Violation of FDCPA

In Khimmat v. Weltman, Weinberg & Reis Co., LPA, No. 2:21-cv-02944-JDW, 2022 U.S. Dist. LEXIS 21076 (E.D. Pa. February 7, 2022), Weltman, Weinberg & Reis Co., LPA (Weltman), a law firm tasked with collecting the debt owed by...more

California Federal Judge Rejects Fourth Attempt at Settlement Approval in Five Guys Class Action

On January 24, the U.S. District Court for the Eastern District of California took the unusual step of declining to sign off — for the fourth time — on a proposed settlement, resulting from a putative class-action lawsuit...more

More Privacy, Please - December 2021

Do you want a simple way to keep current on important privacy changes? Avoid sleepless nights wondering whether you missed a privacy speed bump or pothole between annual updates? Worry no longer. Troutman Pepper is pleased to...more

More Privacy, Please - November 2021

Do you want a simple way to keep current on important privacy changes? Avoid sleepless nights wondering whether you missed a privacy speed bump or pothole between annual updates? Worry no longer. Troutman Pepper is pleased to...more

Eighth Circuit Holds Insurer Not Obligated to Defend Debt Collection Firm in FDCPA Lawsuit

In Rodenburg LLP v. The Cincinnati Insurance Company, No. 20-2521 (8th Cir. August 25, 2021), the Eighth Circuit upheld a district court’s grant of summary judgment in favor of an insurance company that was sued by a law...more

No Standing in Data Breach Case Involving “Essentially Useless” Stolen Data

The Central District of California recently dismissed a data breach class action for lack of standing, notwithstanding evidence that the stolen data of 40 million consumers had allegedly been offered for sale on the dark web....more

More Privacy, Please - May 2021

Do you want a simple way to keep current on important privacy changes? Avoid sleepless nights wondering whether you missed a privacy speed bump or pothole between annual updates? Worry no longer. Troutman Pepper is pleased to...more

2020 Consumer Financial Services Year in Review & A Look Ahead

2020 was a transformative year for the consumer financial services world. As we navigate an unprecedented volume of industry regulation, Troutman Pepper is uniquely positioned to help its clients find successful resolutions...more

Calling SCOTUS: Eleventh Circuit Invites Supreme Court to Address Circuit Split on Article III Standing for Data Incident...

Last Thursday, the Eleventh Circuit affirmed a district court’s dismissal for lack of standing in a data incident case. The majority opinion, written by Senior Judge Gerald Bard Tjoflat and joined by Judge Adalberto Jordan...more

No Federal Court Standing for Data Breach Claims Alleging Theft of Non-Sensitive Personal Information

A federal court in California has ruled that the plaintiff in a putative class action alleging theft of non-sensitive personal information arising from a cybersecurity data breach lacks Article III standing to maintain his...more

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