Consumer Financial Services Outlook 2022
January 12, 2022 | Webinar
Join us for our annual Consumer Financial Services Outlook webinar. This session focuses on providers of consumer financial products and services and their service providers, including advertisers, in such markets as student loans, payment systems, mortgage lending and servicing, BNPL, small dollar lending, consumer reporting, consumer credit and related services, money transmission and check cashing, prepaid cards, debt collection, and debt relief services.
Legal and Regulatory Developments
CFPB Fall 2021 Supervisory Highlights Compliance Violations
The CFPB recently released its Fall 2021 Supervisory Highlights of compliance violations in the areas of credit card account management, debt collection, deposits, fair lending, mortgage servicing, payday lending, prepaid accounts, and remittance transfers. Here are some of the highlights excerpted from the CFPB's report.
Use of Artificial Intelligence Targeted by DC Legislation
The use of artificial intelligence to determine access to credit and other important life opportunities has been targeted by legislation under consideration by the District of Columbia City Council. On December 9, 2021, DC Attorney General Karl Racine introduced the "Stop Discrimination by Algorithms Act of 2021."
Update on Consumer Financial Services Investigations and Enforcement
Consumer financial services investigations and enforcement actions can present significant risks and potential disruptions for companies. Assessing how they might impact your company and how to respond presents its own challenges. With increased activity at the CFPB in investigations and enforcement, and synergies on priorities among the CFPB, the FTC, the DOJ and activity on the state level, there are multiple paths to being scrutinized and investigated for compliance with the alphabet soup of consumer financial laws and regulations.
FTC's Notice of Penalty Offenses: What Do They Mean for You?
The Federal Trade Commission (FTC) recently issued Notices of Penalty Offenses regarding for-profit education, endorsements and testimonials, and money-making opportunities. Prior to this year, the FTC had used its Penalty Offense authority only once in this century. So why the sudden rebirth? In this webinar, Venable attorneys examined the FTC's authority in this area, the substance of the notices, and their broad implications.
Director Chopra Warns Staff and Companies of Heightened Scrutiny of CFPB Alums
It can cost companies a significant amount of time and resources to understand relevant consumer financial services law and regulations, navigate a thicket of present and past guidance and rulemakings, and keep up with the CFPB's policies and procedures. Many companies may seek professional assistance, especially if they are under investigation and facing the threat of an enforcement action, but now there's an additional factor: the possibility of heightened scrutiny if they are being represented by a CFPB alum.
New York Enacts the Consumer Credit Fairness Act, with Immediate Impact on Collections Litigation in the State
On November 8, 2021, New York Governor Kathy Hochul signed into law the Consumer Credit Fairness Act. The Act provides new requirements and prohibitions for debt collection in New York State and reduces the statute of limitations on suits filed by creditors from six years to three years. The Act is also part of an uptick in newly enacted consumer protection measures by state lawmakers.
Chair Kahn Says Don't Do the Crime If You Can't Do the Time
A hallmark of Chair Lina Khan's tenure thus far at the FTC has been her effort to stoke fear to try to deter conduct that she does not like. The FTC's recent Penalty Offense Notices and the Enforcement Statement on Negative Option Marketing provide examples. Last week, during the Commission's open meeting on November 18 the Commission engaged in more sabre rattling by issuing a "Commission Statement Regarding Criminal Referral and Partnership Process." This statement outlines the FTC's renewed commitment to continue to expand its criminal referral program.
To Boldly Go: New Frontiers in Fair Lending
Venable attorney Jonathan Pompan presented "To Boldly Go: New Frontiers in Fair Lending" at the 2021 InFin MoneyTrends conference. The presentation covers fair lending from the front lines of product development and regulatory entanglement.
New Mastercard Requirements for Subscription and Negative Option Billing Models
Mastercard recently announced new requirements for merchants using a subscription billing model or negative option model, or both. The new standards focus on disclosures made to consumers at the point of payment; providing adequate confirmation, notices, and billing receipts; and affording customers an online or electronic cancellation method. Requirements relating to point of payment disclosures become effective on September 22, 2022. The other requirements will become effective much sooner, on March 22, 2022.
Does Your Website Comply with the ADA? Don't Wait for a Class Action to Find Out
All companies and organizations with a website—whether for internal use or publicly facing—must ensure that their website complies with the Americans with Disabilities Act (ADA). Website owners are increasingly facing lawsuits filed on behalf of visually impaired, hearing-impaired, and other disabled individuals who are unable to access website features.
Upcoming Events
Consumer Financial Services Outlook 2022
January 12, 2022 | Webinar
Join us for our annual Consumer Financial Services Outlook webinar. Venable attorneys will review the current state of federal and state consumer financial protection law and policy and outline what you and your company need to know about what’s ahead. Speakers will share their experiences from the front lines and offer strategies to help you navigate the evolving legal and regulatory landscape. This session focuses on providers of consumer financial products and services and their service providers, including advertisers, in such markets as student loans, payment systems, mortgage lending and servicing, BNPL, small dollar lending, consumer reporting, consumer credit and related services, money transmission and check cashing, prepaid cards, debt collection, and debt relief services.
Emerging Markets for Debt Buyers at the 25th Annual Receivables Management Association International (RMAi) Conference
February 9, 2022
Jonathan L. Pompan, a co-chair of the Consumer Financial Services Practice Group, will moderate and present on a session on emerging markets for the receivables management sector at the 25th Annual Receivables Management Association International conference on February 9, 2022. This is the premier conference for the receivables management industry, with insights from debt buyers, originating creditors, collection agencies, law firms, brokers, and more.
Payments After Dark: Managing High-Risk Payments
May 1-4, 2022 | Nashville, TN
Venable attorney Ellen T. Berge will be presenting "Payments After Dark: Managing High-Risk Payments" at the 2022 Smarter Faster Payments conference, to be hosted by Nacha on May 1-4, 2022. Financial institutions make business decisions to originate ACH transactions for clients, and it is incumbent on them to conduct appropriate due diligence and related risk management. When engaging in what could be considered high-risk activity, it is imperative that an institution implement a robust and holistic risk management program throughout its life cycle that elicits active involvement and commitment across the organization. Ellen will examine updates on "high-risk" payments and the types and magnitude of transactions that give rise to such risks.