The CFPB finalizes its payday rule, the FTC and state AGs take on student loan debt relief companies, and more in this issue of Consumer Financial Services Practice Digest

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Small-Dollar Loan

CFPB Finalizes Payday Rule

Earlier this month, the CFPB finalized its small-dollar rule, which covers the Short-Term and Longer-Term Loan Rule (the "Payday Rule"), which applies requirements, prohibitions, and reporting obligations to certain small-dollar, shorter-term loans. Much of the rule has been finalized as proposed. An important change, however, is that the final rule does not apply "ability-to-repay" or "ATR" requirements to all longer-term loans, which would have been covered under the proposal. The CFPB notes that it is conducting further study of longer-term loans.

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Student Loans

"Operation Game of Loans": FTC and State AGs Target Student Loan Debt Relief Companies

FTC Acting Chairman Maureen Ohlhausen declared that "winter is coming" for student loan debt relief companies engaging in deceptive practices. On Friday, October 13, the FTC and attorneys general in 11 states and the District of Columbia announced the new consumer fraud enforcement initiative, branded "Operation Game of Loans."

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Financial Crime Investigation

Operation Chokepoint – The Report of its Death May Be an Exaggeration

"Wait a minute," you may say, "the Department of Justice just announced that Operation Chokepoint was over. I read the letter." Yes, in an August 16 letter to Congress the Department of Justice stated that Operation Chokepoint "is no longer in effect, and it will not be undertaken again." While the announced end of Operation Chokepoint may be an important moment for the payments industry, it is equally important to recognize that there is nothing to stop the Department of Justice – or, for that matter, the Consumer Financial Protection Bureau, the Federal Trade Commission, or a state attorney general – from bringing a case that looks very much like those that arose under Operation Chokepoint.

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New Compliance Rules

"Inside Tips for Demonstrating Compliance and Navigating CFPB Examinations" in RMA Insights Fall 2017 Issue

Navigating a government examination requires more foresight and vigilance than ever. Between the inception of the CFPB and heightened scrutiny from state and local regulators, it is no secret that regulatory expectations have increased exponentially over the past several years. Furthermore, even companies that are RMA certified and accustomed to government oversight can find supervisory interactions with federal and state regulators, particularly with CFPB, to be opaque and confusing. As a result, members of the receivables management industry must be careful when navigating an examination.

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Advertising Law Tool Kit

Download Venable's New Advertising Law Tool Kit Today

Venable recently published the expanded and updated sixth edition of its Advertising Law Tool Kit. The Tool Kit is a handy desk reference designed to help in-house counsel and marketers identify and mitigate common advertising law problems. In addition to newly added topic areas, the sixth edition also includes "Be Prepared" sections, which provide overviews on how to address Lanham Act litigation, state attorney general inquiries, and Federal Trade Commission (FTC) investigations. The Tool Kit is viewable online and can be downloaded to your computer or mobile device, or printed.

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VENABLE TEAM UPDATE
Gerry Sachs

Venable LLP is pleased to announce that Gerald S. (Gerry) Sachs has joined the firm as partner in the Washington, DC office, in the Government Division, where he will assist consumer financial services companies with compliance, law enforcement investigations, and litigation. Mr. Sachs served in the CFPB Enforcement Office as senior counsel for policy and strategy, and was an attorney at the FTC and an Assistant United States Attorney for the Northern District of Georgia.

Mr. Sachs' practice focuses on state and federal consumer financial protection law. He advises banking, payments, and other financial services companies on a range of regulatory compliance and enforcement-related matters, including audits, supervisory examinations, high-stakes law enforcement investigations, and litigation.

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UPCOMING EVENTS

October 26, 2017: Government Investigations 101: Knock, Knock! Who's There? When the Government Answers, It's Not a Joke at Venable's New York Office

November 2, 2017: Remaining Compliant in a Sea of Changing Expectations at the 2017 ACA International Fall Forum and Expo

November 9, 2017: Recent FCRA Trends and Updates Impacting Furnishers Webinar

RECENT EVENT
September 12: An Overview of the CFPB's Final Arbitration Agreements Rule. To listen to a recording of the program and view the corresponding slides, please click here. A copy of the presentation can be downloaded by clicking here.