In a September 26 settlement, the Massachusetts Attorney General’s office reached an agreement with a mortgage loan servicer to resolve allegations of violations of Massachusetts consumer protection laws and the Truth in Lending Act.Continue Reading Massachusetts AG Reaches Settlement with Loan Servicer Over Improper Debt Collection Practices
State Issues
Swipe Fee Saga Continues: OCC and Trade Groups Clash with Illinois AG
The banking industry’s efforts to challenge a new Illinois law banning interchange fees, also known as “swipe fees,” on tax and tip payments gained significant momentum when the OCC criticized the law as an “ill-conceived” threat to the “efficient and effective” operation of the banking system in an amicus brief filed in Illinois federal court on October 2. Continue Reading Swipe Fee Saga Continues: OCC and Trade Groups Clash with Illinois AG
DC Attorney General Settles with Title Insurance Companies Over Alleged Kickback Scheme
On August 29, the DC Attorney General’s office announced settlements with four title insurance companies over their widespread use of illegal kickbacks in violation of DC’s Consumer Protection Procedures Act (CPPA). Under the terms of the settlement, the title insurance companies are required to pay a combined total of $3,290,000.Continue Reading DC Attorney General Settles with Title Insurance Companies Over Alleged Kickback Scheme
New Hampshire Updates Motor Vehicle Retail Installment Act: What Lenders Need to Know
On August 2, New Hampshire passed House Bill 1243 (the “Bill”), which substantially amends its Motor Vehicle Retail Installment Sales Act (the “Act”). The Bill is effective as of August 2.Continue Reading New Hampshire Updates Motor Vehicle Retail Installment Act: What Lenders Need to Know
New Florida Law Overhauls Consumer Finance Loan Interest Rate Requirements
Florida recently enacted H1347, revising the state’s criteria for what constitutes usurious consumer loans. Continue Reading New Florida Law Overhauls Consumer Finance Loan Interest Rate Requirements
Pennsylvania Amends Data Protection Requirements with Revised Breach Notification Act
On June 28, Pennsylvania took a significant step to enhance its data protection framework by updating the Breach of Personal Information Notification Act through the enactment of SB 824. This new legislation revises the older 2005 law and places a stronger emphasis on the security of digital data. It also introduces more stringent guidelines for notifying consumers and relevant authorities following a data breach.Continue Reading Pennsylvania Amends Data Protection Requirements with Revised Breach Notification Act
Swipe Fee Showdown: Illinois Passes Novel Payments Law
Illinois has become the first state to enact restrictions on credit and debit card interchange fees – commonly known as swipe fees – linked to taxes and gratuities. The Interchange Fee Prohibition Act (the “Act”), embedded as Section 150-10 of the state’s latest revenue bill, signed on June 7 by Governor J.B. Pritzker, aims to accommodate retailers who have long contested the fairness of these fees. The Act forbids card issuers, payment card networks, acquirer banks and payment processors from charging retailers for swipe fees on gratuities and “any use and occupation tax or excise tax” imposed by the State or a local government. The Act will become effective in July 2025.Continue Reading Swipe Fee Showdown: Illinois Passes Novel Payments Law
Maryland Banking Regulator Settles with Bank/Fintech Partnership For Unlicensed Lending, Credit Repair, and Debt Collection Activities
On May 16, the Maryland Office of Financial Regulation (“OFR”) announced a settlement with a Missouri-based bank and its fintech partners for engaging in unlicensed lending, credit repair, and debt collection activities.
In the OFR’s January 2021 Charge Letter, the agency alleged that the bank and its fintech partners violated Maryland law by its failure to hold a lending, debt collection, and credit repair license. According to the OFR, the bank offered in-store retail credit financing as well as store-branded credit cards to Maryland consumers. Continue Reading Maryland Banking Regulator Settles with Bank/Fintech Partnership For Unlicensed Lending, Credit Repair, and Debt Collection Activities
Florida Expands its “De-Banking” Law
Florida is one of several states that has enacted “de-banking” legislation that requires financial institutions to provide consumers with fair access to financial products and services. On May 3, Governor DeSantis signed into law H.B. 989, which amends and expands upon that law and provides additional protection for consumers against discrimination by financial institutions.Continue Reading Florida Expands its “De-Banking” Law
South Carolina Enacts Earned Wages Access Law
On May 21, less than a month after Kansas, South Carolina has become the fifth state to enact comprehensive earned wages access (EWA) legislation, which is set to take effect on November 21, 2024.Continue Reading South Carolina Enacts Earned Wages Access Law
Massachusetts AG Forces Fintech from State as Part of “True Lender” Settlement
On May 21, the Massachusetts Attorney General entered into an Assurance of Discontinuance (“AOD”) with a California-based fintech alleging that it was the “true lender” of its consumer installment loans. Under the terms of the settlement, the fintech is required to pay $625,000 in restitution, request deletion of tradelines on credit reports for loans reported to credit bureaus, and cease doing business in the state. Continue Reading Massachusetts AG Forces Fintech from State as Part of “True Lender” Settlement