Payment Law Advisor

Legal Commentary and Resources for the Payment Industry

Earlier this month, the Federal Deposit Insurance Corporation (FDIC) published a Request for Information (RFI) seeking public comment on issues related to small-dollar lending by FDIC-supervised financial institutions. Specifically, the RFI solicits comments about “consumer demand for small-dollar credit products, the supply of small-dollar credit products currently offered by banks, and whether there are steps the FDIC could take to better enable banks to provide such products to consumers to meet demand.” Comments responsive to…
On November 6, 2018, DWT’s Project W hosted the third FinTech Women event of the year, featuring a panel discussion titled “State of the FinTech Ecosystem: the FI Perspective.” The panelists represented a wide cross-section of financial institutions engaged in the FinTech ecosystem, including a large national bank, a growing community bank and one of the largest credit unions in the country. Panelists included: Julie Pukas, Head of Commercial Product Integration and Merchant Solutions, TD…
On Thursday, November 8, DWT FinTech team co-leader Andy Lorentz took part in the Commerce.Innovated Class 8 Demo Day in New York City. Andy led a discussion on legal developments in FinTech, with a focus on federal regulatory rollbacks, an update on federal enforcement activities, a discussion of the regulatory environment at the state level, and an overview of multiple FinTech innovation initiatives. To view the presentation materials, please click here.  …
On September 10, 2018, the Bureau of Consumer Financial Protection (the “Bureau”) published a notice of proposed policy guidance to create a “Disclosure Sandbox.” The proposed policy to provide a Disclosure Sandbox would be designed to allow a covered person to apply for a “trial disclosure program waiver” that, generally speaking, would allow the person to test a new type of a required disclosure or a new method of delivering the disclosure while the Bureau…
In the final days of its 2018 session, the California legislature sent a flurry of bills to Governor Jerry Brown’s desk on topics as diverse as net neutrality, school start times, and clean energy. But it is SB 1235, “Commercial financing; disclosures,” that may be of particular note for commercial lenders.  The bill is designed to give small businesses in California more information with which to compare and analyze financing options,…
Federal and state fair lending regulators are charting different courses for the future of “disparate impact” liability under the Equal Credit Opportunity Act and analogous state law. For its part, the federal policymaking apparatus is working to limit or eliminate disparate impact liability under ECOA, basing the change on the Supreme Court’s 2015 Inclusive Communities decision. Some state regulators—who share ECOA enforcement authority with their federal counterparts and can also bring actions to enforce state…
Earlier this summer the Office of the Comptroller of the Currency issued the anticipated announcement that fintech companies engaged in the business of banking may apply for special purpose national bank charters. In conjunction with its announcement, the Comptroller of the Currency, Joseph Otting, adopted a Policy Statement describing how the agency will consider applications by financial technology companies — the “new entrants to the national banking system” — under the agency’s existing chartering authority.…
Earlier this week, the Third Circuit rejected student loan servicer Heartland Campus Solutions, ECSI’s challenge to a CFPB civil investigative demand (CID), which sought information concerning ECSI’s “servicing of student loans, including processing payments, charging fees, transferring loans, maintaining accounts, and credit reporting[.]” While ECSI is the latest in a string of CID recipients challenging the scope of an investigation, one of ECSI’s primary objections is novel. The company argued that if the Notification of…
On July 30, DWT payments member Robin Nunn spoke on a panel focused on Artificial Intelligence and Machine Learning at the National Bar Association’s (NBA) 93rd Annual Convention & Exhibits. The panel discussed a range of questions, including, “What is AI? How are existing laws affected by AI? Who should be held responsible – the provider or the consumers? How do we counter bias in AI?”   To view the presentation materials, click here.…
The financial technology company seeking to launch an innovative financial product or financial service—and in need of a group of consumers to test whether the idea even works—might consider working in Arizona’s FinTech Sandbox. The Arizona Attorney General, Mark Brnovich, has established the state’s Regulatory Sandbox Program (“Sandbox”), and the state’s AG Office is prepared to accept applications from individuals or entities seeking to test an “innovative” financial product or financial service with consumers…