Financial Services Blog

Showing 26 posts in Credit Cards.

It’s EZ as 1, 2, 3 . . . Disclosure, limited liability and periodic statements required for prepaid accounts under the CFPB’s new Prepaid Rule amending Regulations E and Z

The Consumer Financial Protection Bureau (CFPB) recently issued a final rule, the “Prepaid Rule,” amending Regulations E and Z. The Prepaid Rule affects issuers of prepaid personal, household or family accounts by expanding the applicability of Regulations E and Z as of October 1, 2017. It brings “prepaid accounts” into Regulation E’s definition of “account” and broadens the reach of Regulation Z’s overdraft credit features. While this rule applies to digital wallets and P2P payments, the CFPB did not extend this rule to virtual currency. Read More ›

Are Prices Free Speech? The Supreme Court is set to weigh in on whether merchant surcharges are protected as free speech

The Supreme Court recently agreed to review a case from the Second Circuit Court of Appeals holding that New York’s anti-surcharge provision was constitutional. Similar cases–with differing outcomes–have been heard in the Fifth and Eleventh Circuits, as well as a District Court in the Ninth Circuit.  The issue is this: in each of the states at issue, statutes prohibit “surcharges” but permit discounts to cash purchasers, whether explicitly (California and Florida) or by implication (New York and Texas).  For example:   Read More ›

State Attorneys General Ask at the Checkout Counter, “Chip & Sign or Chip & Pin?”

Should state Attorney General’s (AG’s) intrude in the private market place to influence the choice consumers and merchants’ make as to the type of payments they will prefer for credit card transactions?  By any account, those are complicated business decisions involving complex cost, risk, marketing, technology and personal preference issues, which are often unique to each business’s situation.  But nonetheless, this is exactly what nine Attorneys General recently did. 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, [1] 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 ›

At Risk: Community Banks and the Recovery of Losses Due to Merchant Data Breach

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 ›

Credit Reporting Agencies' Deal Could Impose Additional Investigation Rules on Companies that Furnish Credit Information

Following months of negotiations, the three largest national credit reporting agencies agreed to a sweeping settlement this week that could affect how banks, retailers, credit card companies and other credit furnishers conduct their business. Read More ›

When Contract Boilerplate Matters: A Case Lesson From the Credit Card Processing World

Those practicing in the payments space know that recorded judicial decisions are few and far between concerning disputes over credit card processing contracts.  Terms and conditions in these contracts are often created with heavy reliance on general contract principles, even though the operative acts of the parties are highly unique and subject to extensive third-party rules.  The January 15, 2015 decision in Schnuck Markets v. First Data Merchant Data Services Corp. and Citicorp Payment Services, U.S.D.C. E.D. Missouri, No. 4:13-CV-2226-JAR, is one of those rare cases, and is a decision highlighting the importance of careful contract drafting in the context of the merchant processing relationship. Read More ›

Mind Your P's And Q's, Or At Least The Contents Of Your Account

Remember hearing that for a suit on an account, a proper account must be attached to the complaint filed in court?  During the latter part of last year, the Court of Appeals in Franklin County, Ohio, reversed a summary judgment against a debtor on the grounds including the failure of a creditor to meet Ohio Civil Rule 10(D)(1) by attaching a proper account.  Read More ›

On Account Claim Deficient Where Account Statements Attached To Plaintiff's Complaint Do Not Reflect Purchases And Payments

            In Equable Ascent Fin., LLC v. Christian, 196 Ohio App.3d 34, 2001-Ohio-3791 the Court of Appeals in the Tenth District, Franklin County, reversed a trial court’s order granting default judgment to plaintiff credit card account holder on the grounds that the on account claim filed against Defendant debtor Sue Ann Christian (“Christian”) failed because the credit card statements attached to the Complaint were insufficiently detailed.  Read More ›

Indiana Court Of Appeals Invalidates Arbitration Agreement That Selected NAF As Arbitrator On The Ground It Is Impossible To Perform

In Geneva-Roth Capital, Inc. v. Edwards, the Indiana Court of Appeals considered an issue of first impression in Indiana: when the parties to an arbitration agreement select a specific arbitrator, and that arbitrator is no longer available, does the agreement fail for impossibility? Cause No. 49A02–1101–PL–43, 2011 WL 5566216 (Ind. Ct. App. Nov. 16, 2011). In that case, the defendant lender extended a small, short-term loan to the plaintiff borrower. The loan agreement included an arbitration provision, which provided: Read More ›

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Attorney Spotlight

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.

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