nkolen – Page 5 – Consumer Financial Services Watch

A Hard Rain Has Started to Fall A Product-by-Product Review of the CFPB’S First 60 Enforcement Actions

Nov 12 2014

Between July 17, 2012 and October 9, 2014, the Consumer Financial Protection Bureau brought 60 enforcement actions. According to our unofficial tally, they resulted in settlements requiring the payment of $2.2 billion in restitution, $174 million in CFPB civil money penalties, and, in a few cases, other forms of consumer relief. In this alert, we discuss the products and alleged practices that led to those recoveries. Our purpose is simple—what’s past is likely prologue when it comes to CFPB enforcement actions. Understanding the conduct that produced the first 60 enforcement actions will help companies avoid becoming one of the next 60 enforcement actions.

To read the full alert, click here.

FinCEN Acknowledges the Problem, But a Solution Will Require More

Nov 12 2014

By: David L. Beam

Money services businesses (“MSBs”) have been losing access to banking services. Increased scrutiny by bank regulators of MSB relationships have led banks to conclude that providing services to MSBs carries increased compliance and reputational risk. Even if these risks can be managed in theory through appropriate due diligence and controls, many banks have decided that costs and risks of offering banking services to MSBs outweigh the revenue that they generate. Read More

The First Circuit Clarifies That A Defendant’s Deadline to Remove is Principally Influenced by the Actions of the Plaintiff

Nov 12 2014

By: Robert W. Sparkes, III, Brian M. Forbes

The first questions any defendant served with a complaint filed in state court should consider are whether removal of the action to federal court is preferable and, assuming the action is removable, when must a notice of removal be filed. The “when” question continues to be a source of debate as federal courts across the country grapple with issues pertaining to (1) the triggering of the removal clocks under federal law and (2) the duty of a defendant to investigate the removability of an action. Joining other federal circuit courts of appeal to have addressed these issues, on October 24, 2014, the First Circuit Court of Appeals provided its answers in Romulus v. CVS Pharmacy, Inc. And, it may come as a surprise to some, the answers are largely dependent on the actions taken by the plaintiff.

To read the full alert, click here.

FCC Order Confirms that TCPA Regulations Require Opt-Out Notice on All Fax Advertisements, Even Those Sent with Prior Express Permission

Nov 10 2014

By: Joseph C. Wylie II, Molly K. McGinley, Nicole C. Mueller

On October 30, 2014, the Federal Communications Commission (“FCC”) released an Order that “confirms” that opt-out notices complying with rules and regulations adopted by the FCC in 2006, pursuant to the authority granted to the FCC under the Telephone Consumer Protection Act of 1991, as amended by the Junk Fax Prevention Act of 2005, are required on all advertisements transmitted by facsimile, including advertisements transmitted with the prior express permission of the recipient. The FCC also granted retroactive waivers to parties that were reasonably uncertain about whether the opt-out notice requirement applied to faxes sent with prior express permission from the recipient. The FCC further stated that individual retroactive waivers may be extended to similarly situated parties that seek waiver requests prior to April 30, 2015.

To read the full alert, click here.

2014 Election Guide: A Guide to Changes in Congress

Nov 05 2014

Riding a wave of voter discontent, Republicans in the mid-term election took control of the U.S. Senate and increased their majority in the House. The results offer an opportunity for collaboration between the Congress and the Obama Administration, and to restart the legislative process.

To help you assess yesterday’s election, K&L Gates has prepared a comprehensive guide that summarizes the results and their impact on the 114th Congress, which will convene in January. The Election Guide lists all new members elected to Congress, updates the congressional delegations for each state, and provides a starting point for assessing the coming changes to the House and Senate committees.

Please click here to download the most up-to-date version of the 130 page Election Guide, which will be updated on an ongoing basis as more of the close races are called and committees are finalized. Read More

U.S. District Court Strikes Down HUD’s Fair Housing Act Disparate Impact Rule

Nov 04 2014

By: Paul F. Hancock, Andrew C. Glass, Roger L. Smerage, and Olivia Kelman

On Monday, November 3, 2014, Judge Richard J. Leon of the U.S. District Court for the District of Columbia struck down the disparate impact rule promulgated by the U.S. Department of Housing and Urban Development (“HUD”) in March 2013 under the Fair Housing Act. The court held that HUD had issued the rule—codified at 24 C.F.R. § 100.500—in contravention of the plain language of the Fair Housing Act. The case is styled American Insurance Association, et al. v. United States Department of Housing & Urban Development, et al., Case No. 1:13-cv-00966-RJL (D.D.C.).

Get Ready to Be Acquired

Nov 04 2014

By: Robert P. Zinn

Acquisition for payments startups and growing companies is a fact of life. And, whether acquisition is your reason for being or you want to grow old with the company you’ve founded, it’s best to be prepared. This article will tell you why early preparation is important and practical things you can do prepare—before live bullets are flying and a sale transaction is at hand.

To read the full article, click here.

The 2015 U.S. News-Best Lawyers “Best Law Firms” Survey

Nov 03 2014

For a fifth consecutive year, global law firm K&L Gates LLP is among the top two law firms with the most first-tier rankings in the annual U.S. News-Best Lawyers “Best Law Firms” survey. The firm also has been honored for a second straight year with the publication’s sole national “Law Firm of the Year” distinction in the Securities Regulation area, one of 35 practices in which K&L Gates received a first-tier ranking nationally. Of these national first-tier rankings, the Consumer Financial Services practice was acknowledged within the Banking and Finance Law and Financial Services Regulation Law categories. Read More

CFPB Finalizes Rule Permitting Financial Institutions to Post Privacy Notices Online

Oct 30 2014

By: Kristie D. Kully, David A. Tallman, Jeremy M. McLaughlin

Last week, the CFPB last week finalized its rule permitting certain financial institutions to post their annual privacy notices online, claiming it will benefit consumers and financial institutions alike. The rule became effective on October 28, 2014, and applies to banks and non-banks within the CFPB’s jurisdiction.

K&L Gates Programs: Election 2014: Policy Implications Across Industries

Oct 15 2014

On the eve of the 2014 Congressional elections, the Public Policy and Law Group of K&L Gates is hosting two complimentary programs for our clients and contacts on topical issues and implications about the upcoming election. Please see below for more information on both, including how to register. If you wish to attend both programs, you must register for both programs.

Program 1
The Mid-Term Elections: What They Mean for Major National Policies
Thursday, October 30, 2014
3:00 – 4:00 pm EDT

Panelists will discuss alternative impacts of a Republican takeover or Democratic retention of the Senate and continued Republican control of the House on key issues, including energy/environment, financial services, health care and tax.

Program 2
Election 2014: Its Impact on Federal Policy-Making in 2015
Monday, November 3, 2014
2:00 – 3:00 pm EDT

Panelists will discuss changes on key Congressional committees, the agenda for the 114th Congress and the impact on the Obama Administration’s policies and regulatory activities.

Author - nkolen