Financial Services Perspectives

Regulatory, compliance, and litigation developments in the financial services industry

Blog Authors

Latest from Financial Services Perspectives

The FDIC over the past few years has taken meaningful steps to facilitate and promote the formation of de novo banks. Late last week, the agency made several significant moves to bolster that effort. In separate actions, the FDIC: issued a request for information seeking comments on how to improve the deposit insurance application process; issued an update to its publication entitled Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions and issued…
A cyber threat detection company has identified a Nigerian-based hacking group that is engaging in a spearphishing campaign against financial institutions. Spearphishing is a directed email phishing campaign that is typically aimed at those with responsibilities relating to financial transactions. In this case, the group in question has compiled a list of over 35,000 CFOs working at financial institutions, with over half of them in the U.S. While the existence of this group, “London…
On the heels of FinCen and Federal Banking Agencies releasing a joint statement “Encouraging Innovative Industry Approaches to AML Compliance,” Under Secretary for Terrorism and Financial Intelligence Sigal Mandelker announced a new collaborative era during the American Bankers Association’s Financial Crimes Conference, and emphasized the need for private/governmental working relationships and partnerships in order to combat new and sophisticated avenues that fund terrorism and facilitate money laundering. The message is simple: As technology-enabled crime proliferates,…
While businesses and consumers were all agog to see the latest variation of the California Consumer Privacy Act passed earlier this year, Canada quietly introduced its latest permutation to the Personal Information Protection and Electronic Documents Act (PIPEDA), which imposes new mandatory breach notification obligations on companies engaged in the collection of Canadians’ personal information. U.S. companies engaged in business across the northern border or that collect personal information of Canadian citizens in the United…
From 2000 to 2007—the seven years leading up to the recent financial crisis—the FDIC received more than 1,600 applications for deposit insurance, an average of more than 200 per year. More than 1,000 new banks ultimately were formed over this same period. During and following the financial crisis, however, de novo bank formations became almost nonexistent. The reasons were understandable. De novo banks failed during the financial crisis at a higher rate than similarly sized…
For years, the “legal” cannabis industry – operating in states that have legalized cannabis under state law despite its long-standing prohibition under federal law – and the financial institutions that serve the industry have closely watched Safe Streets Alliance v. Hickenlooper. In Hickenlooper, Safe Streets Alliance, a “nonprofit organization devoted to reducing crime and illegal drug dealing,” and a family (Plaintiffs) that owned land surrounding a Colorado cannabis farm (Farm), sued the Farm and…
On Tuesday, the small-dollar lending industry received a favorable ruling in Community Financial Services Association of America v. CFPB. A Texas federal court reversed course by staying the August 19, 2019, compliance date for the Bureau of Consumer Financial Protection’s (BCFP) rule regarding “Payday, Vehicle Title, and Certain High-Costs Installment Loans.” The court also continued a stay on the underling litigation previously issued on June 12, 2018. This latest ruling was prompted by the BCFP’s…
On October 17, 2018, the Bureau of Consumer Financial Protection (BCFP), formerly known as the CFPB, announced that it plans to issue a Notice of Proposed Rulemaking (NPRM) for the Fair Debt Collection Practices Act (FDCPA) by March 2019. The NPRM will likely have a dramatic impact on collection practices for debt collectors. But, what about first party creditors? Did the Supreme Court’s decision in Henson v. Santander Consumer USA, Inc. obviate the necessity…
Earlier this week, the Bureau of Consumer Financial Protection (BCFP) released a 50-State Complaint Snapshot. Credit reporting, debt collection, and mortgage continued to be the top three categories of complaints both nationwide and in most states. The percentage of consumer reporting complaints did increase by 11 percent from 2016 to 2017 and surpassed debt collection as the number one source of complaints, which suggest financial services companies, including debt collectors, should increase their focus…
On October 24, 2018, the Bureau of Consumer Financial Protection (BCFP), formerly known as the CFPB, entered into a Consent Order with Cash Express, LLC. Cash Express is a small dollar lender based in Cookeville, Tennessee, that operates 328 retail lending outlets in Alabama, Kentucky, Mississippi, and Tennessee, and offers short-term loans and check cashing services to its customers. Cash Express agreed to a $200,000 penalty and to pay $32,000 in restitution to resolve allegations…