Consumer Financial Services Law Blog
Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Services Law Blog

Consumer Financial Services Law Blog

News and analysis regarding Consumer Financial Services litigation and regulation, and activities of the Consumer Financial Protection Bureau

Get updates by email

RSS Subscribe to this blog's feed
Twitter Follow us on Twitter


Photo of Consumer Financial Services Law Blog Elizabeth A. Khalil
View Bio

Showing 14 posts by Elizabeth A. Khalil.

FinCEN Publishes New Advisory on Cyber-Events and Cyber-Enabled Crimes

The Financial Crimes Enforcement Network (“FinCEN”) recently published an Advisory to Financial Institutions on Cyber-Events and Cyber-Enabled Crime. The Advisory does not change or create any new regulatory obligations, but it does clarify how existing Bank Secrecy Act (“BSA”) regulations for reporting cyber-events and cyber-enabled crimes apply to financial institutions. Specifically, the Advisory provides additional guidance for reporting cyber-enabled crime and cyber-enabled events through Suspicious Activity Reports (“SARs”), including cyber-related information in SARs; collaborating between BSA units and in-house cybersecurity units to identify suspicious activity; and sharing cyber-related information among financial institutions to prevent and report money laundering, terrorism financing, and cyber-enabled crimes. Read More ›

In Brief: CFPB Issues Long-Awaited Final Prepaid Rule

After more than four years of anticipation and speculation from the financial services community, the Consumer Financial Protection Bureau (CFPB) unveiled its final prepaid rule on October 5 (accompanied by an animated video explaining highlights of the rule). Read More ›

New CFPB Mortgage Servicing and Loss Mitigation Rules to Take Effect in 2017 and 2018; New FDCPA Safe Harbor CFPB White Paper May Signal More to Come from CFPB on Loss Mitigation

The Consumer Financial Protection Bureau has issued yet another suite of regulatory changes related to mortgage servicing. The rules add additional protections for borrowers—and therefore increased requirements for servicers—as well as clarify certain issues that have been the subject of questions and confusion by servicers. Read More ›

CFPB Issues Latest TRID Proposal for Comment

On Friday, July 29, the Consumer Financial Protection Bureau (CFPB) issued a much-anticipated proposal to amend its TILA-RESPA Integrated Disclosure Rule (TRID), with public comments due October 18, 2016. Read More ›

CFPB Releases Outline of Proposals for Debt Collection Rules

The Consumer Financial Protection Bureau (“CFPB”) announced yesterday at a field hearing in Sacramento, California, that it is considering several potential approaches to issuing rules on debt collection. The CFPB would take this action pursuant to its authority under the Dodd-Frank Act to issue regulations implementing the Fair Debt Collection Practices Act (“FDCPA”) as well as to issue regulations prohibiting unfair, deceptive, and abusive acts and practices. This rulemaking would mark the first time regulations would be issued to implement the FDCPA, and it is likely to have significant effects on the debt collection industry. Read More ›

SEC’s Focus on Enforcing Data Security Safeguards Continues: Lessons Learned from Its $1M Fine of Morgan Stanley

The SEC’s recent settlement with Morgan Stanley highlights the agency’s continued focus on enforcing cybersecurity measures. On June 8, 2016, Morgan Stanley agreed to pay a $1 million penalty to settle charges relating to its alleged failure to adopt written policies and procedures reasonably designed to protect customer records and information, a violation of the “Safeguards Rule.”  Read More ›

Illinois Strengthens Data Breach Notification Statute

Illinois recently amended its data breach notification law, joining a number of states that have also amended their own breach notification statutes this year. States appear to be looking to strengthen their breach notification laws by expanding the definition of "personal information" covered by the laws, clarifying the role of encryption in providing a safe harbor, and redefining content and timing requirements for notifications provided to affected persons. Read More ›

FinCEN Releases Long-Awaited Beneficial Ownership Final Rule

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has finalized its long-awaited beneficial ownership rule, which it proposed in 2014. The regulation does two things.  First, it extends Customer Due Diligence (CDD) requirements under Bank Secrecy Act (BSA) rules to the natural persons behind a legal entity. Second, the regulation adds a fifth pillar to the traditional “four pillars” of an effective anti-money laundering (AML) program by requiring covered financial institutions to establish risk-based procedures for conducting ongoing customer due diligence. As of May 11, 2018, entities subject to BSA will be required to identify and verify the identity of beneficial owners of legal entity customers at the time the customer opens a new account, subject to certain exclusions and exemptions, as well as develop risk profiles and conduct ongoing monitoring of customers. Read More ›

CFPB Releases Arbitration Proposal

Today, the Consumer Financial Protection Bureau (the “CFPB”) released much-anticipated proposed rules for mandatory arbitration clauses, which the CFPB colloquially refers to as “contract gotchas.” The proposed rules follow on the heels of the CFPB’s March 2015 Arbitration Report, which the CFPB concluded demonstrates that mandatory arbitration clauses are detrimental to consumers. As expected, the proposed rules evidence the CFPB’s concerns around mandatory arbitration clauses. Read More ›

FFIEC Releases Guidance on Risk Management for Mobile Financial Services

The Federal Financial Institutions Examination Council (FFIEC) has issued new guidance to its examiners regarding mobile financial services (MFS), which includes mobile banking and mobile payments. The guidance also provides valuable insight for industry participants in the MFS space as to regulators’ expectations and tips for mitigating applicable risks.   Read More ›