Telemarketers are now prohibited from accepting four methods of payment that the Federal Trade Commission (“FTC”) believes allow fraudulent telemarketers to avoid detection and prevent chargebacks.
“Con artists like payments that are tough to trace and hard for people to reverse,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC’s new telemarketing rules ban payment methods that scammers like, but honest telemarketers don’t use.”1 Read More ›
A House Divided: U.S. District Court Splits on Whether Class Has a Private Right of Action Against “Money Transmitters”
Two class action lawsuits, Hucke v. Kubra Data Transfer LTD., Corp., No. 2-15-cv-14232-RLR, and Pincus v. Speedpay, Inc. Case No. 9:15-cv-80164-KAM,  in the U.S. District Court for the Southern District of Florida, seek the determination of whether two credit card processors violated the following Florida statues: Read More ›
In a short but very sweet ruling for the financial institutions suing Target to recover costs associated with mitigating the gigantic data breach suffered by Target in late 2013, Judge Magnuson certified the financial institutions class on Tuesday September 15.
The litigation of which we have previously written on a couple of occasions (see At Risk: Community Banks and the Recovery of Losses Due to Merchant Data Breach and Opening the Rule 23 Floodgates: Did Plaintiffs just hit the Data Breach Bulls-Eye?) stems from a data breach that impacted more than 100 million customers and cost the financial institutions over 30 million in losses primarily due to the reissuance of some 25,000 debit and credit cards. Read More ›
On July 10, 2015, the Federal Communication Commission (FCC) came out with new rules interpreting the Telephone Consumer Protective Act (TCPA). Read More ›
Community Banks need to be aware of the risks posed by cryptocurrencies like Bitcoin, because their prevalence will only increase, writes the Federal Reserve Bank of San Francisco. Wallace Young, the Director of the Federal Reserve Bank of San Francisco, in the recent article “What Community Bankers Should Know About Virtual Currencies” in Community Banking Connections, outlines four risks undertaken by community banks that interact with businesses in the virtual currency ecosystem: Compliance, Reputational, Credit, and Operational. Read More ›
Continuity or Change? How the Supreme Court changed the law for lenders under the FHA without changing it at all.
After leaving the public, press, regulators, and lenders lingering for six months, the Supreme Court finally produced its 5-4 opinion in Texas Department of Housing & Community Affairs v. The Inclusive Communities Project, Inc., a blockbuster case in which the Court concluded that the Fair Housing Act permits statistically-based disparate impact claims. The Supreme Court’s opinion is important for two reasons. First, it finally puts the Supreme Court’s seal of approval on FHA disparate impact claims, a theory of liability that has been universally recognized by the federal courts of appeals. Second, it will likely embolden plaintiffs to file more suits using a disparate impact theory, which means lenders should evaluate their current policies and practices, especially discretionary pricing policies, to avoid engaging in practices that could be interpreted as discriminatory. Read More ›
Regional and community Banks often serve as Issuer Banks by providing credit and debit cards to their customers. They also can often face losses because of downstream merchant data breaches that expose the credit and debit cards to misuse. The well known data breach of Target in late 2013 and Home Depo in 2014 are but two very public examples. Read More ›
Developments in the Rules Governing Personal Identifiable Information May Have Unexpected Consequences for Lenders And Other Businesses.
Much has been written of late about data breaches and the liabilities for the unauthorized acquisition of Personally Identifiable Information (PII) from institutions, including financial institutions. But what about when the alleged “breach”--the release of information --is voluntarily and/or legally compelled? What are the risks for creditors who take collateral, in security for the repayment of debt, containing PII data? What are the risks to businesses when they transfer assets that include PII? What liabilities do they face? What are the rights of customers? Read More ›
Many banks are now evaluating the pros and cons of using the new “.bank” domain. For those not already in the know, rather than continuing to use the generic “.com” domain, qualifying banks can soon switch to a more descriptive .bank top-level domain name. For example, a bank’s website address might read www.XYZinstitution.bank, rather than www.XYZinstitution.com; and its emails name.employee@XYZinstitution.bank. In 2012, fTLD Registry Services, LLC (formed by the Financial Services Roundtable and the American Bankers Association) applied to ICANN for the right to issue and manage the .bank generic top-level domain names. On September 25, 2014, fTLD was granted these rights, and it promptly established a roll-out schedule for the issuance of the .bank domain name. For those few financial institutions who hold registered trademarks in their names, open enrollment began last Sunday, May 17, 2015. For all the other banks, those without registered trademarks, general availability enrollment will begin at 8:00 pm, EDT, on June the 23rd. Read More ›
Does your company lease point-of-sale (POS) credit card terminals to customers in Tennessee? Or, are you a Tennessee merchant who accepts credit or debit card sales? If so, your company will want to be aware of a new Tennessee law that regulates POS terminal contracts. Read More ›
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Christopher C. Tieke is an associate in Frost Brown Todd's Louisville office, focusing his practice on business litigation. He graduated from the University of Cincinnati College of Law, with magna cum laude honors; served as an Associate Member of the University of Cincinnati Law Review; and participated in the Entrepreneurship and Community Development Clinic.