Subcommittees on Consumer Credit Laws Report
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Community Reinvestment Act Regulations
DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 25 and 195 [Docket ID OCC-2021-0014] RIN 1557–AF12 Community Reinvestment Act Regulations AGENCY: Office of the Comptroller of the Currency, Treasury. ACTION: Notice of proposed rulemaking. SUMMARY: The Comptroller of the Currency proposes to replace the current Community Reinvestment Act rule with rules based on the 1995 Community Reinvestment Act (CRA) rules, as revised, issued by the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and Federal Deposit Insurance Corporation (FDIC). The proposal would replace the existing rule in 12 CFR part 25 and reinstate 12 CFR part 195 (for savings associations). Such action would effectively rescind the CRA final rule published by the Office of the Comptroller of the Currency on June 5, 2020, and facilitate the issuance of joint CRA rules with the Board and FDIC. DATES: Comments must be received on or before October 29, 2021. ADDRESSES: Commenters are encouraged to submit comments through the Federal eRulemaking Portal. Please use the title “Community Reinvestment Act Regulations” to facilitate the organization and distribution of the comments. You may submit comments by any of the following methods: 1 Federal eRulemaking Portal – Regulations.gov: Go to https://regulations.gov/. Enter “Docket ID OCC-2021-0014” in the Search Box and click “Search.” Public comments can be submitted via the “Comment” box below the displayed document information or by clicking on the document title and then clicking the “Comment” box on the top-left side of the screen. -
Consumer Financial Services Litigation
Consumer Financial Services Litigation What Sets Us Apart Our Services Understanding of Legal Demands and Business Needs. Our more Best-in Class Litigation and Trusted Advice. than 30 consumer financial services litigation attorneys handle Our breadth of experience encompasses virtually every kind of claim brought against disputes for industry clients nationally in myriad consumer lending consumer lending industry clients by civil litigation and enforcement forums. plaintiffs in class action or single-plaintiff litigation, and by regulators, for alleged Industry Know-How. Our long-term work with some of the biggest violations of federal and state laws and regulations, unfair and deceptive acts and names in the consumer finance industry affords us with the knowledge practices, challenges to fees, interest rates and expertise to effectively and efficiently tackle emerging issues and and other contract terms, discriminatory loan keep up with our clients’ ever-changing financial services products, practices, property preservation policies and activities, force-placed and other insurance practices, and regulations. We know the consumer lending industry. products, and privacy and data security matters—among many others. We routinely Our Clients. Practicing in federal, bankruptcy, and state courts litigate, for example, the alphabet soup of throughout the United States, we tap our deep industry knowledge complex regulatory and enforcement and preemption issues involving federal and state derived from representing a diverse array of financial institutions, laws, such as: including national and state-chartered banks, credit unions, credit • Electronic Funds Transfer Act (EFTA) bureaus, mortgage lenders and servicers, automobile finance • Equal Credit Opportunity Act (ECOA) companies, student lenders, credit card companies, community banks, • Fair Credit Billing Act (FCBA) specialty finance firms, retailers, and other businesses who deal with their consumer customers on credit. -
LON-MOW036PUIB-680 Payments Regulation Paper Ami Patel
Financial Services THE REGULATION OF TRADITIONAL AND ALTERNATIVE ELECTRONIC PAYMENTS THE CASE FOR A LEVEL PLAYING FIELD AUTHORS Tony Hayes Ross Frisbie First published December 2011 Note: While this paper assesses a number of laws and regulations, it is not intended to constitute legal advice (even to lawyers, a number of regulations and provisions are subject to interpretation). As such, this paper reflects our perspectives and represents a diligent effort to draw attention to issues that are likely to increase in importance over time. CONTENTS 1. EXECUTIVE SUMMARY .............................................................................................1 2. WHY THE REGULATORY TREATMENT OF PAYMENTS MATTERS NOW .....................5 3. OVERVIEW OF ALTERNATIVE ELECTRONIC PAYMENTS ...............................................................................................................7 3.1. DEFINITIONS .................................................................................................7 3.2. MARKET SIZE .................................................................................................8 3.3. TAXONOMY..................................................................................................12 4. NOTABLE CHANGES TO PAYMENTS LAW AND REGULATION, 2008-2011 .......................................................................................19 4.1. OVERDRAFT CHANGES (REG E) ...................................................................19 4.2. THE CREDIT CARD ACT ................................................................................22 -
PA974 001-001 Monetary Policy & Financial Regulation in A
PA974-001 Monetary Policy & Financial Regulation in a Globalized Economy Lecture 17 1 November 2010 Instructor: Menzie Chinn Fall 2010 Economic Analysis of Banking Regulation Asymmetric Information and Bank Regulation • Government safety net: Deposit insurance and the FDIC Short circuits bank failures and contagion effect Payoff method Purchase and assumption method • Moral Hazard Depositors do not impose discipline of marketplace Banks have an incentive to take on greater risk • Adverse Selection Risk-lovers find banking attractive Depositors have little reason to monitor bank Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 11-2 Too Big to Fail • GtidtfGovernment provides guarantees of repayment to large uninsured creditors ofthf the l argest tb ban ks even w hen they are not entitled to this guarantee • Uses the purchase and assumption method • Increases moral hazard incentives for big banks Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 11-3 Financial Consolidation • LdLarger and more comp lbkilex banking organizations challenge regulation Increased “too big to fail” problem Extends safety net to new activities, increasing incentives for risk taking in these areas Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 11-4 Restrictions on Asset Holding and Bank Capital Requirements • Attempt s t o rest ri ct b ank s f rom t oo much risk taking Promote diversification Prohibit holdings of common stock Set capital requirements • Minimum leverage ratio • Basel Accord: risk-based capital -
Major Banking Laws
Major U.S. Banking Laws The most important laws that have affected the banking industry in the United States are listed below (in chronological order). • National Bank Act of 1864 (Chapter 106, 13 STAT. 99). Established a national banking system and the chartering of national banks. • Federal Reserve Act of 1913 (P.L. 63-43, 38 STAT. 251, 12 USC 221). Established the Federal Reserve System as the central banking system of the U.S. • The McFadden Act of 1927 (P.L. 69-639, 44 STAT. 1224). Amended the National Banking Laws and the Federal Reserve Act and prohibited interstate banking. • Banking Act of 1933 (P.L. 73-66, 48 STAT. 162). Also known as the Glass-Steagall Act. Established the FDIC as a temporary agency. Separated commercial banking from investment banking, establishing them as separate lines of commerce. • Banking Act of 1935 (P.L. 74-305, 49 STAT. 684). Established the FDIC as a permanent agency of the government. It extended the branching provisions of the Banking Act of 1933 to FDIC non-members and required state member banks to obtain Federal Reserve Board approval of new branches. • Soldiers and Sailors Civil Relief Act of 1940 (50 App. U.S.C. § 501). The Soldiers' and Sailors' Civil Relief Act of 1940 (SSCRA), as amended, was passed by Congress to provide protection for individuals entering or called to active duty in the military service. It is intended to postpone or suspend certain civil obligations to enable servicemembers to devote full attention to duty. The Act applies to the United States, the states, the District of Columbia, all U.S. -
Extensions of Remarks E1083 EXTENSIONS of REMARKS
May 7, 2009 CONGRESSIONAL RECORD — Extensions of Remarks E1083 EXTENSIONS OF REMARKS MORTGAGE REFORM AND ANTI- risk. I believe that if these provisions had been LOCAL LAW ENFORCEMENT HATE PREDATORY LENDING ACT in place 10 years ago, the foreclosure crisis CRIMES PREVENTION ACT OF 2008 might have been averted. We cannot turn SPEECH OF SPEECH OF back time. But we can learn—and if we have HON. STENY H. HOYER learned anything, it is how much we need leg- HON. LUCILLE ROYBAL-ALLARD OF MARYLAND islation like this. I urge my colleagues to sup- OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES port it. IN THE HOUSE OF REPRESENTATIVES Wednesday, May 6, 2009 Wednesday, April 29, 2009 The House in Committee of the Whole f Ms. ROYBAL-ALLARD. Mr. Speaker, I was House on the State of the Union had under proud to cast my vote along with 249 other consideration the bill (H.R. 1728) to amend MOURNING THE PASSING OF members of the House of Representatives in the Truth in Lending Act to reform con- RUSSELL DUNHAM favor of the Local Law Enforcement Hate sumer mortgage practices and provide ac- Crimes Prevention Act. This legislation will countability for such practices, to provide certain minimum standards, for consumer protect Americans by expanding the definition mortgage, loans, and for other purposes: HON. JOHN SHIMKUS of hate crimes and providing law enforcement Mr. HOYER. Mr. Chair, it is well-known by OF ILLINOIS officers with the tools they need to prosecute now that our economic crisis began as a fore- these heinous crimes. -
FEDERAL RESERVE SYSTEM the First 100 Years
FEDERAL RESERVE SYSTEM The First 100 Years A CHAPTER IN THE HISTORY OF CENTRAL BANKING FEDERAL RESERVE SYSTEM The First 100 Years A Chapter in the History of Central Banking n 1913, Albert Einstein was working on his established the second Bank of the United States. It new theory of gravity, Richard Nixon was was also given a 20-year charter and operated from born, and Franklin D. Roosevelt was sworn 1816 to 1836; however, its charter was not renewed in as assistant secretary of the Navy. It was either. After the charter expired, the United States also the year Woodrow Wilson took the oath endured a series of financial crises during the 19th of office as the 28th President of the United and early 20th centuries. Several factors contributed IStates, intent on advocating progressive reform to the crises, including a number of bank failures, and change. One of his biggest reforms occurred which generated waves of bank panics and on December 23, 1913, when he signed the Federal economic instability.2 Reserve Act into law. This landmark legislation When Jay Cooke and Company, the nation’s created the Federal Reserve System, the nation’s largest bank, failed in 1873, a panic erupted, leading central bank.1 to runs on other financial institutions. Within months, the nation’s economic problems deepened as silver A Need for Stability prices dropped after the Coinage Act of 1873 was Why was a central bank needed? The nation passed, which dampened the interests of U.S. silver had tried twice before to establish a central bank miners and led to a recession that lasted until 1879. -
Presentation Title Here
Solar Energy and Consumer Financial Protections March 17, 2017 Claudia Callaway Christina Grigorian Genus Heidary Katten Muchin Rosenman LLP Washington, DC +1.202.625.3500 Claudia Callaway Partner +1.202.625.3590 | [email protected] Claudia Callaway leads the firm's newly formed Platform Lending Initiative. In this role, she focuses on defending clients against state and federal class actions regarding consumer protection and consumer finance laws, representing clients before the Consumer Financial Protection Board (CFPB), the Federal Trade Commission (FTC) and state banking agencies, and assisting clients in adhering to the dynamic landscape of platform and peer-to-peer (P2P) lending. CLEAN ENERGY Claudia has deep experience representing Clean Energy providers, installers, lenders and their investors. She regularly teams with her colleagues in Katten's Structured Finance group to provide multi-disciplined representation for the firm's Clean Energy clients. CFPB Having represented clients before the CFPB since its inception, Claudia understands the varying perspectives of key stakeholders, and helps clients navigate the hurdles and opportunities available to parties under the CFPB's jurisdiction. Working with banks, credit unions, platform lenders and other financial services clients, Claudia provides pragmatic advice on state and federal banking and consumer protection matters, including privacy, collections, credit reporting and usury issues as well as enforcement of arbitration provisions and class action waivers. PLATFORM -
Consumer Credit
RECENT DEVELOPMENTS DECEPTIVE TRADE PRACTICES AND WARRANTIES MAGNUSON-MOSS EXHAUSTION RULE IS NOT JURIS- sion Fund Benefit Plan C. v. Stockton TRI Indus., 727 F.2d 1204, DICTIONAL 1208 (D.C. Cir.1984) (“Only when Congress states in clear, un- equivocal terms that the judiciary is barred from hearing an action Maronyan v. Toyota Motor Sales, U.S.A., Inc., 658 F.3d 1038 until the administrative agency has come to a decision . has the (9th Cir. 2011). Supreme Court held that exhaustion is a jurisdictional prerequi- site.”). The court disagreed FACTS: Mariam Maronyan leased a new car from defendant, The court disagreed Toyota Motor Sales. The car began to have mechanical problems with Toyota’s contention that with Toyota’s con- within the warranty period. Toyota failed to repair the problems Congress had mandated the tention that Con- to Maronyan’s satisfaction, and she brought suit against Toyota MMWA exhaustion require- gress had mandated in federal district court. Her claim alleged breach of warranty ment as jurisdictional, conclud- under the Magnuson–Moss Warranty Act (“MMWA”). The dis- ing that the necessary “sweeping the MMWA exhaus- trict court granted Toyota’s motion to dismiss for lack of subject and direct” language required tion requirement as matter jurisdiction on the ground that Maronyan did not pursue in Weinberger was not present. her claims through the California Dispute Settlement Program Only when Congress has used jurisdictional. (which Toyota specified in its warranty) before filing suit in civil “sweeping and direct language court. that goes beyond a requirement that only exhausted claims be HOLDING: Reversed. -
And Others Your Credit Rights
DOCUMENT RESUME ED 274 380 JC 860 481 AUTHOR Jensen, Barbara J.; And Others TITLE Your Credit Rights: An Instructional Unit on Consumer Credit Protection. Revised. INSTITUTION Federal Reserve Bank of Minneapolis, Minn. PUB DATE Jun 86 NOTE 76p.; For the original instructional unit, see ED 217 912. PUB TYPE Guides - Classroom Use - Guides (For Teachers) (052) EDRS PRICE MF01/PC04 Plus Postage; DESCRIPTORS *Consumer-Economics; *Consumer Education; *Consumer Protection; *Credit (Finance); Economics Education; *Federal Legislation; Instructional Materials; Postsecondary Education; Pretests Posttests; Secondary Education IDENTIFIERS *Fair Credit Billing Act; *Truth in Lending ABSTRACT This instructional guide adds two new sections to the original guide published in May 1982. The guide was designed to assist educators in teaching the topics of consumer credit and consumer credit protection to secondary and postsecondary students in various economics and business courses, as well as in adult and community education courses. The new sections can be used on their own or in combination with the other four sections comprising the original instructional unit. The first of the two sections focuses on the Truth in Lending Act, addressing the following topics: credit options, the provisions of the law, credit advertising, credit shopping, using open-end credit accounts, and economics of the Truth in Lending Act. The second section deals with the Fair.Credit Billing Act, covering the following topics: assessing the correctness of a monthly credit statement, provisions of the law, correcting billing errors, credit card transactions, and special credit card/debit card rules. Each section includes directions for use, an introduction, a list of key concepts and definitions of terms, an answer key, and information sheets which may serve as masters for overhead transparencies or instructional materials for students. -
Finance Charges for Consumer Credit Under the Truth in Lending Act
Board of Governors of the Federal Reserve System Report to the Congress Finance Charges for Consumer Credit under the Truth in Lending Act April 1996 FEDERAL RESERVE BOARD STUDY ON FINANCE CHARGES FOR CONSUMER CREDIT UNDER THE TRUTH IN LENDING ACT The Truth in Lending Act requires disclosure of the "finance charge," the cost of consumer credit expressed as a dollar amount. The uniform disclosure of financing costs is designed to assist consumers in shopping for credit products. The cost of credit under the act is also expressed as an annual percentage rate. The finance charge does not include every cost associated with obtaining consumer credit, such as many charges paid in a real estate-secured loan. From the beginning of the discussion about the concept of "Truth in Lending" in the 1960s there has been a considerable debate about which costs should be classified as finance charges for disclosure purposes. Over the years, a complex set of rules has attempted to define with precision which charges should or should not be considered finance charges. Despite these rules, ambiguities have persisted, and in recent years lenders have become increasingly concerned about litigation alleging incorrect categorization of these charges. The Truth in Lending Act Amendments of 1995 represent a reaction to many of the specific issues raised in the court cases. The amendments expressly exclude from the finance charge some of the specific fees that were the subject of litigation. But as a more fundamental approach to the problem, section 2(f) of the 1995 Amendments directs the Board to report to the Congress on how the finance charge could be modified to more accurately reflect the cost of consumer credit. -
Consumer Credit, Privacy, and Data Security
Consumer Credit, Privacy, and Data Security In today’s electronically driven marketplace, consumer privacy, credit, and data security issues arise in most types of business. Musick Peeler’s consumer credit and privacy practice group has extensive experience in all areas of consumer credit, privacy, and data security law, covering both litigation and counseling for litigation avoidance. Our consumer credit and privacy litigation expertise spans hundreds of cases brought under numerous federal laws, including: Fair Credit Reporting Act (FCRA), including the FCRA amendments pursuant to the Fair And Accurate Credit Transactions Act (FACTA) Fair Debt Collection Practices Act (FDCPA) Credit Repair Organizations Act (CROA) Equal Credit Opportunity Act (ECOA) Truth in Lending Act (TILA) Telephone Consumer Protection Act (TCPA) Electronic Fund Transfer Act (EFTA) Fair Credit Billing Act (FCBA) Real Estate Settlement Procedures Act (RESPA) Gramm-Leach-Bliley Act (GLB) Musick Peeler’s experience also covers California’s state consumer credit and privacy laws, including: Rosenthal Fair Debt Collection Practices Act Consumer Credit Reporting Agencies Act Investigative Consumer Reporting Agencies Act Song-Beverly Credit Card Act Consumer Legal Remedies Act (CLRA) © 2021 Musick, Peeler & Garrett LLP. All rights reserved. Unfair Business Practices Act (17200 Claims) California Consumer Privacy Act Musick Peeler’s consumer credit and privacy team has represented all types of organizations involved in consumer credit and privacy matters, including: Representation of financial institutions in defense of individual and class actions alleging violations of credit reporting and collection laws. Representation of credit reporting agencies in defense of individual and class lawsuits, including acting as regional litigation counsel for a major nationwide credit reporting agency in 11 states.