Regulation

OCC’s HSU Suggests Requiring Banks, AI Companies to Reimburse Customers for Fraud

ABA Banking Journal

"A new U.K. regulation requiring banks to reimburse customers for losses resulting from push payment fraud “deserves greater discussion and debate” in the U.S., particularly when the fraud is powered by artificial intelligence, Acting Comptroller of the Currency Michael Hsu said...Hsu pointed to the U.K.’s Payment Systems Regulator, which recently issued a rule requiring banks to reimburse customers when criminals trick them to send money to a fraudulent account."

Tags: OCC

Companies Regulation

Coinbase Must Face Us Securities Regulator’s Lawsuit, Judge Says

Reuters

"A federal judge in Manhattan on Wednesday said the U.S. Securities and Exchange Commission's lawsuit against Coinbase can move forward, but dismissed one claim the regulator made against the largest U.S. cryptocurrency exchange."

Tags: Coinbase SEC

Regulation

CFPB Takes Action to Halt False Claims of 'Free' International Money Transfers

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) issued a new circular warning remittance transfer providers that false advertising about the cost or speed of sending a remittance transfer can violate federal law. Companies in the marketplace are charging junk fees on international money transfers and making false claims about the speed of transfers."

Tags: CFPB

Regulation

CFPB Clarifies Plans to Recognize Standard-Setting Organizations

ABA Banking Journal

"Before the Consumer Financial Protection Bureau finalizes its proposed rulemaking on personal financial data this fall, it will first codify what attributes an organization must have to be recognized under the rule as an issuer of qualified industry standards, CFPB Director Rohit Chopra said Wednesday."

Tags: CFPB

Regulation

Banks Prepare Legal Assault on CFPB Credit Card Late Fee Rule

Bloomberg Law

"The Consumer Financial Protection Bureau’s landmark rule capping credit card late fees at $8 faces a bumpy path ahead, as industry groups eye legal challenges to block it from taking effect. Banks have already blasted the regulation released Tuesday, arguing the CFPB used a shoddy process and incorrect math."

Tags: CFPB

Regulation

CFPB Bans Excessive Credit Card Late Fees, Lowers Typical Fee from $32 to $8

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) finalized a rule to cut excessive credit card late fees by closing a loophole exploited by large card issuers...once the final rule goes into effect by reducing the typical fee from $32 to $8."

Tags: CFPB

Regulation

EU Adopts Euro Instant Payments Rules to Take on Visa, Mastercard

Reuters

"The European Union Council on Monday adopted rules to make instant payments in the euro currency fully available round-the-clock in a move it expected to help European payments companies compete against U.S. firms Visa and Mastercard. The new regulation will allow customers to transfer euro-denominated money within 10 seconds at any time, including outside business hours, not only within the same country but also to another EU member state, the EU Council said."

Regulation

US Supreme Court Wrestles With Bid to Challenge Debit Card ‘Swipe Fee’ Rule

Reuters

"U.S. Supreme Court justices on Tuesday grappled with a North Dakota convenience store's challenge to a government regulation on debit card "swipe fees" - a case that could make it easier for businesses to try to undo longstanding federal rules."

Regulation

CFPB Report Finds Large Banks Charge Higher Credit Card Interest Rates than Small Banks and Credit Unions

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau reported on the first set of results from the newly updated Terms of Credit Card Plans survey in which the survey data reveals that large banks are offering worse credit card terms and interest rates than small banks and credit unions, regardless of credit risk."

Tags: CFPB

Global Regulation

Indian Parliamentary Panel Red-flags PhonePe and Google Pay Cornering 83% of India's UPI Payments

TechCrunch

"An Indian parliamentary panel has urged the government to support the growth of domestic fintech players that can provide alternatives to the Walmart-backed PhonePe and Google Pay apps that currently command more than 83% of the country’s fast-growing digital payments market."

Tags: India

Regulation

South Dakota Joins Florida, Indiana in Passing Anti-CBDC Bill

CoinGeek

"South Dakota has joined Florida and Indiana in opposing the use of central bank digital currency (CBDC), passing an amendment to its Universal Commercial Code (UCC) that explicitly states that a CBDC doesn’t qualify as money in the state."

Regulation

Ensuring Euro Money Transfers Arrive Within Ten Seconds

European Parliament

On Wednesday, MEPs adopted new rules to ensure transferred funds arrive immediately into the bank accounts of retail customers and businesses across the EU. The new regulation aims to make sure that retail clients and businesses, especially SMEs, will not have to wait for their money, as well as to enhance the safety of transfers.

Regulation

CFPB Proposes Rule to Stop New Junk Fees on Bank Accounts

Consumer Financial Protection Bureau

"The CFPB proposed to block banks and other financial institutions from one potential source of new junk fee revenue – fees on transactions declined right at the swipe, tap, or click including prohibiting non-sufficient funds (NSF) fees on transactions that financial institutions decline in real time."

Tags: CFPB

Regulation

Bank Policy Institute and TCH Call for Stronger Consumer Financial Data Rules

bankingexchange

"The Bank Policy Institute (BPI) and The Clearing House Association (TCH) have called for the Consumer Financial Protection Bureau (CFPB) to strengthen its proposed data protection rules arguing the proposed rules do “not go far enough in protecting sensitive consumer financial data or requiring data recipients to comply with these rules”."

Regulation

New York State to Introduce BNPL Licensing Legislation

Retail Banker International

"New York State Governor Kath Hochul announced on Tuesday (2 January) that she plans to propose legislation that would require buy-now-pay-later (BNPL) providers to acquire a license to operate in the state."

Regulation

Lawmakers Ask CFBP to Rein in Financial Industry’s Use of Forced Arbitration

Financial Regulation News

"U.S. Sen. Elizabeth Warren (D-MA) and U.S. Rep. Hank Johnson (D-GA) recently led 91 legislators in urging the Consumer Financial Protection Bureau (CFPB) to protect consumers by reining in the financial industry’s use of forced arbitration."

Tags: CFPB

Regulation

Governor Hochul Signs Four New Laws to Protect Consumers from Price Gouging, Medical Debt and Unfair Business Practices

Governor Kathy Hochul

Legislation S.5941B/A.3245D Requires Companies to Notify Customers of Automatic Subscription Renewals and to Provide Clear Instructions for Canceling; Legislation S.1048A/A.2672B Clarifies that Merchants Must Post the Highest Price a Consumer Might Pay for a Product Regardless of Payment Methods

Tags: Regulatory environment

Regulation

OCC Report Identifies Key Risks Facing Federal Banking System

Banking Exchange

"The Office of the Comptroller of the Currency released its semiannual report analyzing the key issues facing the federal banking system...It highlighted AI in banking as an emerging risk and released guidance on ‘Buy Now, Pay Later’ (BNPL) lending, focusing on risk management."

Tags: OCC

Regulation

Australia to Amend Law to Regulate Digital Payments Like Apple, Google Pay

Reuters

"Australia's government said on Monday it would bring Apple Pay, Google Pay and other digital payment services under the same regulatory umbrella as credit cards and other payments as part of legislation set to be introduced to parliament this week."

Regulation

Eurosystem Updates Its Retail Payments Strategy

European Central Bank

"With the strategy, the Eurosystem aims to improve retail payments within the euro area and to strengthen the European payments market. The main goals of the strategy remain the same: to develop pan-European solutions for payments at the point of interaction (POI), governed at the European level, and to further strengthen the Single Euro Payments Area (SEPA), primarily through the full deployment of instant payments."

Regulation

UK Payments Report Calls for Alternatives to Mastercard and Visa

Reuters

"Britain needs a 'digital alternative' to relying on Visa and Mastercard for card payments regardless of steps being taken by regulators, a report commissioned by the government said on Wednesday."

Regulation

Hunt to Review Payment Rules in Post-Brexit Fraud Push

"Chancellor Jeremy Hunt will this week pledge to review the rules governing payment authentication in what he will describe as a post-Brexit crackdown on fraud."

Regulation

US Consumer Watchdog Hands Wall Street Rare Win With Big Tech Crackdown

Reuters

"The Consumer Financial Protection Bureau (CFPB) last week proposed regulating payments and smartphone wallets provided by tech leaders like Apple and Google, arguing they now rival traditional bank services in scale and scope and should be subject to the same consumer safeguards."

Tags: CFPB

Regulation

FTC, Florida Lawsuit Leads To Restrictions on Chargebacks911, Prohibits Deceptive Efforts to Stop Consumers From Reversing Disputed Charges

Federal Trade Commission

"As a result of a law enforcement action by the Federal Trade Commission and the State of Florida, Chargebacks911 and its owners have agreed to a settlement that will prohibit them from working with certain high-risk clients and using deceptive tactics to stop consumers trying to dispute credit card charges through the chargeback process."

Tags: Federal Trade Commission

Regulation

CFPB Proposes New Federal Oversight of Big Tech Companies and Other Providers of Digital Wallets and Payment Apps

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau (CFPB) is proposing to supervise larger nonbank companies that offer services like digital wallets and payment apps."

Tags: CFPB

Regulation

Chime Inc. Agrees to Pay CFPB $3 Million to Resolve Remittance App Allegations

ABA Banking Journal

"Chime Inc. agreed to pay $3 million to resolve CFPB allegations that its subsidiary mobile app (Sendwave) illegally restricted consumer rights under the EFTA."

Tags: CFPB

Regulation

FCA Secures Contract Changes for Buy-Now-Pay-Later Customers as More Consumers Use the Product

FCA

"New research from the FCA shows that there has been a significant increase in the use of buy-now-pay-later (BNPL)."

Tags: FCA

Regulation

CFPB Issues Biennial CARD Act Report to Congress

Consumer Finance Monitor

"On October 25, 2023, the Consumer Financial Protection Bureau (CFPB) released its sixth consumer credit card market biennial report to Congress as required under the Credit Card Accountability Responsibility and Disclosure Act (CARD Act)."

Tags: CFPB

Regulation

CFPB Report Finds Credit Card Companies Charged Consumers Record-High $130 Billion in Interest and Fees in 2022

Consumer Financial Protection Bureau

"The Consumer Financial Protection Bureau released its biennial report to Congress on the consumer credit card market. The report found that in 2022 credit card companies charged consumers more than $105 billion in interest and more than $25 billion in fees."

Tags: CFPB

Regulation

CFPB Eyes Open Banking with Financial Data Rights Rule Proposal

Compliance Week

"On Thursday, the CFPB proposed its personal financial data rights rule. The action builds upon a proposal outlined by the agency last year as part of its desire to accelerate the shift toward open banking. Comments on the rule are due by Dec. 29."

Tags: CFPB