Troutman Pepper Weekly Consumer Financial Services Newsletter – August 2022 – JD Supra | Omd Cialis

To help you keep up to date with relevant activity, below is a breakdown of some of the biggest federal and state events that impacted the consumer financial services industry over the past week:

federal activities

Government Activities

Federal activities:

  • On July 29, the Federal Deposit Insurance Corporation (FDIC) released an advisory and a factsheet addressing misconceptions about the scope of deposit insurance and related concerns in the crypto space, including the fact that banks are using digital assets Companies should confirm and monitor to ensure this does not misrepresent the availability of deposit insurance. Click for more information here.
  • On July 29, the Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) issued a joint letter reminding auto finance companies of their responsibility to recognize important legal protections for military families under the Servicemembers Civil Relief Act (SCRA). While soldiers have the same rights as non-military borrowers, the SCRA provides additional rights to protect soldiers and their families from unique financial challenges. Click for more information here.
  • On July 29, the Federal Trade Commission (FTC) cracked down on a payments processing company and two of its distribution offices for allegedly trapping small businesses with hidden terms, surprise exit fees, and zombie fees. The FTC alleges the defendants made false claims of fees and cost savings to lure traders, many of whom allegedly had limited English skills. After the traders were registered, the FTC alleges the defendants withdrew funds from their accounts without their consent, making it difficult and expensive to cancel the service. Click for more information here.
  • On July 28, the FDIC and the Federal Reserve Board released a joint letter demanding that a crypto brokerage firm stop making allegedly false and misleading claims about its FDIC deposit insurance status and take immediate corrective action. Click for more information here.
  • On July 27, the CFPB released an analysis of how the measures announced by the three largest national consumer reporting firms will affect people with unpaid medical debt on their credit reports. Almost half of those who have medical collections on their credit reports will continue to see them even after the changes take full effect next year. The medical collection trade lines that remain after the changes in credit reports likely account for a majority of the dollar amount of all currently reported medical collections. Click for more information here.
  • On July 27, the CFPB updated the Debt Collection Rule FAQ. Click for more information here.
  • On July 26, US Senate Banking Committee Ranking Member Pat Toomey (R-PA) and US Senator Kyrsten Sinema (D-AZ) introduced the Virtual Currency Tax Fairness Act to limit the use of digital assets for everyday purchases to simplify. This bipartisan legislation would exempt small face-to-face virtual currency transactions for goods and services from taxation. Click for more information here.
  • On July 21, the Securities and Exchange Commission (SEC) and DOJ launched parallel crypto insider trading actions, with the SEC picking up claims that several tokens listed on a crypto-asset trading platform are securities. In its first insider trading case of “crypto-securities,” the SEC accused three individuals of perpetrating a scheme to trade crypto-assets that the SEC alleges are securities based on confidential, non-public information. The DOJ announced the unsealing of an indictment related to its first case of a cryptocurrency insider trading typing scheme, in which the same three individuals were charged with conspiracy and wire fraud related to the alleged insider trading. Click for more information here and here.

Government Activities:

  • On July 26, Virginia Attorney General Jason Miyares announced an $8 million settlement with a gas station and supermarket chain. The breach allegedly happened after “hackers gained access to the company’s computer network through a phishing attack in late 2018 and later deployed malware [the company’s] Point-of-sale terminals.” Based on this attack, the malware extracted sensitive payment card information between April 18, 2019 and December 12, 2019. “It is imperative that businesses take all appropriate security measures to protect their customers and prevent breaches of sensitive data like this,” Attorney General Miyares said. “I am pleased that we were able to reach an agreement that addresses the behavior at issue and puts future safeguards in place to ensure this type of breach does not happen again.” Click for more information here.
  • On July 25, California Attorney General Rob Bonta issued a consumer alert warning service members, veterans and their families to beware of targeted fraud and fraud. According to the press release, “a recent report received by the Federal Trade Commission regarding consumer complaints in 2021, Military consumers have lost over $103 million to scams.” Attorney General Bonta listed common scams against the military community including: home loan scans, identity theft and fraud, pension fraud, affinity fraud, and predatory auto sales and financing. Click for more information here.
  • On July 22, New Jersey Acting Attorney General Matthew J. Platkin announced that the Department of Consumer Affairs had sent cease and desist letters to a combination of service, retail and restaurant operators in New Jersey. The letters draw merchants’ attention to their obligation to disclose total selling prices, including surcharges, for the use of credit cards, debit cards or prepaid cards to consumers. Click for more information here.
  • On July 19, the US District Court for the District of Delaware issued a decision that was intended to draw attention to banks charging overdraft fees for overdraft protection. in the Miller v. Del-One Federal Credit Union, The Court’s Opinion: (1) upheld a fraud claim based on an allegedly inaccurate disclosure of overdraft policies; and (2) noted that the official overdraft fee opt-in form contained in Regulation E is promulgated under the Electronic Fund Transfers Act and administered by the Consumer Financial Protection Bureau (CFPB), not just to the guidelines of Institution must be adjusted, but also indicate any related overdraft procedures. Click for more information here.

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