Regulatory Developments
CFPB Issues Technical Specifications for Credit Card Agreement and Data Submission Requirements Under TILA and the CARD Act
On August 20, the CFPB released new technical specifications for certain credit card issuers to comply with the Truth in Lending Act (TILA) and the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) by submitting credit card agreements and data to the CFPB’s Collect website. Such data includes: (1) quarterly credit card agreement submissions by January 31, 2022; (2) Terms of Credit Card Plans (TCCP) Survey data by February 14, 2022; and (3) annual reports related to college credit card marketing agreements and data by March 31, 2022. Issuers who have not already registered for Collect and are selected to participate in the TCCP Survey, or are required to submit an annual report pursuant to 12 CFR 1026.57, may begin registering for Collect now by filling out and emailing the Collect Registration Form to Collect_Support@cfpb.gov. Issuers who are required to make quarterly credit card submissions to the CFPB pursuant to 12 CFR 1026.58(c) must register by November 1, 2021. While the CFPB continues to update and publish resources to help issuers use Collect, existing TCCP Collect and other resources, including for the quarterly credit card agreement submissions and annual reports related to college credit card marketing agreements and data, are available on the CFPB’s website.
New York Enacts Law to Curb Overdraft Fees
On August 19, then-Governor Andrew Cuomo signed legislation requiring New York banks to take certain actions to prevent overdraft fees against customer checking accounts. The legislation requires banking institutions that maintain checking accounts to pay checks in the order they are received or pay checks from smallest to largest for each business day, and it requires institutions to disclose to consumers the order in which checks are paid. If a banking institution receives a check for a greater amount of money than the balance in the account, it may decline to pay the check; however, the banking institution must honor any smaller checks that can be paid with the existing account balance. According to the then-Governor’s statement, under current law, if a banking institution receives a check for a larger amount of money than the funds in the account, it will not only dishonor that check, but all subsequent checks, even if there are sufficient funds in the account to pay them. This legislation requires banking institutions to honor subsequent checks if they can be paid using funds in the account.
NYSE Amends Related Party Transaction Approval Requirements
On August 19, the New York Stock Exchange amended its rules that require approval of related party transactions for NYSE-listed companies. This amendment, which is effective immediately, modifies an earlier amendment to these rules approved by the U.S. Securities and Exchange Commission (SEC) in April 2021, which required a listed company’s audit committee or another independent body of the company’s board of directors to approve any related party transaction that would be subject to Item 404 of Regulation S-K “without applying the transaction threshold of that provision.” The SEC has approved the August amendments, although the SEC may temporarily suspend these amendments until October 7, 2021 based on various grounds. Read the client alert to learn more about the amendments.
“Excessive fees on overdrafts, predatory lending, high-cost debt traps — these things shouldn't have a place in the federal banking system.”
– Michael Hsu, Acting Head of the Office of the Comptroller of the Currency
Goodwin News
MBA Regulatory Compliance Conference 2021
Join us at the MBA 2021 Regulatory Compliance Conference, where Goodwin partner Sabrina Rose-Smith will be speaking during the Litigation Forum Track on the topic of Servicing. Conference attendees will have the opportunity to hear first-hand from the regulators and policy makers that make the rules that guide mortgage compliance professionals, as well as get practical advice to meet today's compliance challenges.
Register today and learn more about the event.
Check Out Goodwin’s Latest Industry Insights
FinReg + Policy Watch Blog
Stay on top of developments affecting the financial services community.
LenderLaw Watch Blog
Stay on top of news and legal issues in the consumer finance industry.
Consumer Finance Enforcement Watch Blog
Stay on top of enforcement actions, trends and issues.
Digital Currency + Blockchain Perspectives Blog
Stay on top of digital currency industry news, regulatory developments and issues.
Editors
Samantha M. Kirby
William E. Stern
Contributors
Josh Burlingham