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Feb 9, 2025 | 
creditandcollectionnews.com | John Culhane |John D. Socknat |Joseph J. Schuster
The CFPB rescinded an advisory opinion that had described how one particular type of “earned wage” product did not involve the offering or extension of “credit” as that term is defined in the Truth in Lending Act and Regulation Z as Rohit Chopra’s term as director was coming to an end.
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Jan 16, 2025 | 
jdsupra.com | John D. Socknat
Borrowers with subprime or deep subprime credit scores make up the majority of Buy Now, Pay Later (BNPL) originations, the CFPB said, in a new report. From 2021 to 2022, borrowers with deep subprime credit scores accounted for 45% of BNPL originations, while people with subprime credit cards were responsible for 16% of originations.
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Dec 3, 2024 | 
jdsupra.com | John Culhane Jr. |John Kimble |John D. Socknat
In the wake of the Office of Administrative Law’s approval of its registration and reporting requirements for providers of income-based advances, private postsecondary education financing, debt settlement services, and student debt relief services, California’s Department of Financial Protection and Innovation (“DFPI”) has issued an invitation for comment on “what other industries…the DFPI should establish registration and reporting requirements for under the [California Consumer Financial...
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Nov 1, 2024 | 
jdsupra.com | John Culhane Jr. |John Kimble |John D. Socknat
On October 11, California’s Office of Administrative Law (“OAL”) approved the Department of Financial Protection and Innovation’s (“DFPI’s”) registration rulemaking for providers of the following products: Income-Based Advances (more commonly known as earned wage access (“EWA”) products); Private Postsecondary Education Financing (including income share agreements (“ISAs”); Debt Settlement Services; and Student Debt Relief Services.
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Sep 20, 2024 | 
jdsupra.com | Richard Andreano Jr. |Reid Herlihy |John D. Socknat
The CFPB has scheduled two sessions to provide a preview of its nonbank enforcement order registry. The virtual-only discussions are scheduled for September 30 and October 9. Both sessions will feature the same content. The bureau said that the events are intended for compliance staff that will be registering covered orders with the CFPB’s nonbank enforcement order registry.
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Jul 22, 2024 | 
jdsupra.com | John D. Socknat
The Conference of State Bank Supervisors (CSBS) will release the first phase of major enhancements to the Nationwide Multistate Licensing System & Registry (NMLS) on July 20. The updates are intended to address certain issues industry users have raised, including allowing users to create a username and password without having to contact the NMLS Call Center, and allowing users who have multiple NMLS accounts to access their accounts using one username and password.
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May 14, 2024 | 
jdsupra.com | Peter Hardy |Marjorie Peerce |John D. Socknat
On April 20, 2024, the Pennsylvania Department of Banking and Securities (“DoBS”) issued a (“Policy Statement”) to “clarify” that the Department’s interpretation of the term “money” in the Pennsylvania Money Transmitter Act (“MTA”) includes “virtual currency, such as Bitcoin.” The MTA provides in part that “[n]o person shall engage in the business of transmitting money by means of a transmittal instrument for a fee or other consideration with or on behalf of an individual without first having...
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May 13, 2024 | 
jdsupra.com | Kristen Larson |John D. Socknat
In April 2024, Wisconsin and Maine enacted the Model Money Transmission Modernization Law (“MTML”) to implement the Conference of State Bank Supervisors’ Model Money Transmission Modernization Act. As of April 22, 2024, twenty-one states have fully or partially enacted the model act, and eight additional states having legislation pending. On April 4, 2024, Wisconsin enacted the MTML, which becomes effective January 1, 2025.
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Apr 5, 2024 | 
consumerfinancemonitor.com | Loran Kilson |Terence M. Grugan |John D. Socknat |Stacey Valerio
On August 21, 2019, FinCEN issued an advisory (the “Advisory”) alerting financial institutions to various financial schemes and mechanisms employed by fentanyl and synthetic opioid traffickers to facilitate the illegal fentanyl trade and launder its proceeds.
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Feb 13, 2024 | 
lexblog.com | John D. Socknat |Kaley Schafer
The South Dakota Division of Banking (the “Division”) issued a Memorandum notifying all licensed South Dakota money lenders and non-residential mortgage lenders that the Division has taken the position that they are subject to the Bank Secrecy Act/Anti-Money Laundering (“BSA/AML”) obligations imposed by a 2020 Final Rule published by the Financial Crimes Enforcement Network (“FinCEN”) regarding banks lacking a federal functional regulator (“Final Rule”).
