Consumer FinSights

Regulatory, enforcement and litigation insights on consumer financial and fintech issues

July 16, 2021

On July 12, 2021, the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) proposed interagency guidance on how banks should manage third-party relationships, including partnerships with fintech companies. The proposal would offer a framework for banks when developing risk management practices for their third-party relationships, taking into account the level of risk, complexity, size of the organization, and…

Consumer FinSights

OCC’s Fintech Charter Survives After Reversal in the Second Circuit

By Carolee Anne Hoover, Salwa S. Kamal & McGuireWoods LLP

June 15, 2021

After years of litigation, the Office of Comptroller of the Currency’s (“OCC”) special purpose national bank charter (“fintech charter”) survives to see another day. On June 3, 2021, the Second Circuit reversed the district court’s decision denying the OCC’s motion to dismiss, delivering a blow to the New York Department of Financial Services (“DFS”) and paving the way for the OCC to again accept applications for its fintech charter.…

Consumer FinSights

Oral Arguments Held in Challenge to OCC’s Fintech Charter

By Molly White, Carolee Anne Hoover, Salwa S. Kamal & McGuireWoods LLP

March 24, 2021

On March 9, 2021, the Second Circuit heard oral arguments in connection with the New York Department of Financial Services’ (“DFS”) challenge to block the Office of Comptroller of the Currency’s (“OCC”) special purpose national bank charter (“fintech charter”). The lawsuit was filed in the Southern District of New York in September of 2018, shortly after the OCC made available its special purpose bank charter. The fintech charter would allow certain non-depository fintech companies to…

Consumer FinSights

SEC 2021 National Exam Program Examination Priorities

By Aline McCullough, Cheryl Haas, Molly White & Emily P. Gordy

March 4, 2021

On March 3, the Securities and Exchange Commission released its examination priorities for 2021. While most of the list echoes priorities from previous years, this year’s version includes a greater concentration on climate-related risk and environmental, social and governance matters. Read our complete commentary on McGuireWoods’ Subject to Inquiry Blog for highlights from the 2021 examination priorities, which also address Regulation Best Interest compliance, the impacts of the COVID-19 pandemic and a continued focus on…

Consumer FinSights

The CFPB’s “Change of Direction” After 1 Month: New Goals, More Attorneys

By Susan C. Rodriguez & McGuireWoods LLP

February 26, 2021

It was only just over a month ago that President Biden selected David Uejio, a long-time senior leader at the CFPB with a low public profile, to lead the agency temporarily as Acting Director. But already, Mr. Uejio has made very significant changes at the agency, implementing what he calls a “change of direction” with sweeping announcements on a weekly basis. Even as the Senate prepares to consider President Biden’s nominee, current FTC Commissioner Rohit…

Consumer FinSights

A Detailed Look At The CFPB’s Historic Approval of Payactiv’s Earned Wage Access (EWA) Program under Regulatory Sandbox Policy

By Cheryl Haas, Carolee Anne Hoover & McGuireWoods LLP

January 8, 2021

Last week, we reported that on December 30, 2020, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued compliance assistance sandbox (“CAS”) approval to Payactiv, Inc. (“Payactiv”) regarding specific aspects of its earned wage access (“EWA”) product. Payactiv’s Chief Legal Officer, David Reidy, expressed Payactiv’s reaction to the Approval Order this way – “We are grateful for the hard work and commitment the Bureau showed through this whole process. Everyone involved believes in EWA as…

Consumer FinSights

States Sue to Set Aside OCC’s True Lender Rule

By Susan C. Rodriguez, Carolee Anne Hoover, Salwa S. Kamal & McGuireWoods LLP

January 7, 2021

New York, California and six other States filed a widely expected lawsuit on January 5 seeking to invalidate the “True Lender” Rule recently issued by the Office of the Comptroller of the Currency (“OCC”). As we previously reported, the OCC’s True Lender Rule — finalized in October and effective since December 29 —provides bright-line tests for determining, in the context of a lending partnership between a national bank (or federal thrift) and a third-party…

Consumer FinSights

CFPB Grants Historic Approval to Payactiv, Approving Payactiv’s Earned Wage Access (EWA) Program under Regulatory Sandbox Policy

By Carolee Anne Hoover, Molly White & McGuireWoods LLP

December 31, 2020

On December 30, 2020, the Consumer Financial Protection Bureau (“CFPB”) granted approval to Payactiv, Inc. (“Payactiv”) to offer its earned wage access (“EWA”) program under the CFPB’s Policy on the Compliance Assistance Sandbox, among the first approvals under the CFPB’s regulatory sandbox. In its approval order, the CFPB granted approval to various aspects of Payactiv’s EWA program and grants Payactiv a safe harbor from liability under the Truth in Lending Act (“TILA”) and Regulation…

Consumer FinSights

CFPB’s Fee-Free Model Requirement Set Forth In Its Wage Access Advisory Opinion Raises More Questions

By Carolee Anne Hoover, Anthony Le & McGuireWoods LLP

December 10, 2020

In an earlier article, we provided an overview of the Consumer Financial Protection Bureau’s (“CFPB”) earned wage access (“EWA”) advisory opinion. In the opinion, the CFPB identified seven requirements for a “Covered EWA Program,” i.e., an EWA program that would “not involve the offering or extension of ‘credit’” under the Truth In Lending Act (“TILA”) and its Regulation Z.…

Consumer FinSights

SEC Takes Another Step to Prioritize Fintech Innovation

By Emily P. Gordy & Molly White

December 7, 2020

On December 3, 2020, the SEC announced that FinHub (the Strategic Hub for Innovation and Financial Technology) was being upgraded to an independent office. Acknowledging the importance of the all things fintech (emerging technologies and innovation in financial services), the SEC stated that creating a stand-alone office: “[S]trengthens the SEC’s ability to continue fostering innovation in emerging technologies in our markets consistent with investor protection. The office will continue to lead the agency’s work to…

Consumer FinSights

Regulatory, enforcement and litigation insights on consumer financial and fintech issues

Blog Authors

Bank Regulators Propose Interagency Guidance on Fintech Partnerships

OCC’s Fintech Charter Survives After Reversal in the Second Circuit

Oral Arguments Held in Challenge to OCC’s Fintech Charter

SEC 2021 National Exam Program Examination Priorities

The CFPB’s “Change of Direction” After 1 Month: New Goals, More Attorneys

A Detailed Look At The CFPB’s Historic Approval of Payactiv’s Earned Wage Access (EWA) Program under Regulatory Sandbox Policy

States Sue to Set Aside OCC’s True Lender Rule

CFPB Grants Historic Approval to Payactiv, Approving Payactiv’s Earned Wage Access (EWA) Program under Regulatory Sandbox Policy

CFPB’s Fee-Free Model Requirement Set Forth In Its Wage Access Advisory Opinion Raises More Questions

SEC Takes Another Step to Prioritize Fintech Innovation

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