Header graphic for print
Consumer Financial Services Watch News and developments related to consumer financial products and services

Category Archives: Preemption & Federalism

Subscribe to Preemption & Federalism RSS Feed

New York DFS Clarifies New Debt Collection Regulations

Posted in Litigation & Enforcement Actions, Mortgage Servicing, Preemption & Federalism

By: Steven M. Kaplan, Gregory N. BlaseChristopher E. Shelton

Responding to industry questions about New York’s new debt collection regulations, most of which take effect on March 3, 2015, the Department of Financial Services has published a detailed FAQ on its website. We previously analyzed the regulations in a client alert.

As we anticipated in our alert, the FAQ confirms that “debt servicers, including companies that service student loans, home equity loans or mortgages … who collect or attempt to collect a debt that was not in default at the time it was obtained for collection … Continue Reading

Bureau Considers Enforceability of State Unclaimed Property Laws for Gift Cards

Posted in Bureau of Consumer Financial Protection (CFPB), Payment Systems, Preemption & Federalism

By: David L. Beam

The gift card provisions of the Electronic Funds Transfer Act (“EFTA”) and Regulation E (which implements the EFTA) do not allow funds on most gift cards to expire sooner than five years after issuance (or, if the card is reloadable, five years after the last load). But the unclaimed property laws in some states require gift card issuers to turn over the funds on dormant gift cards sooner than five years after the last activity. The state unclaimed property laws generally relieve the issuer of the obligation to honor a card after it has turned the … Continue Reading

Preemption Decision is Great News for National Banks and Federal Savings Associations

Posted in Preemption & Federalism

By: David L. Beam

Last Thursday, the California Supreme Court handed down what arguably is the most important decision on federal preemption for national banks since the Dodd-Frank Act was passed in mid-2010. The specific issue in Parks v. MBNA America Bank, N.A., 2012 Cal. LEXIS 5795 (Cal. June 21, 2012), was whether California could require national banks to place certain disclosures on credit card “convenience checks.” MBNA, the defendant, argued that the California law was preempted for national banks by the National Bank Act. The state court of appeals had disagreed.… Continue Reading