CFPB Bulletin on Deceptive Credit Card Marketing

On September 3rd, the Consumer Financial Protection Bureau warned credit card companies against deceptively marketing interest-rate promotions. The Bureau issued a bulletin advising credit card issuers that they must clearly disclose the costs and risks of promotional offers. CFPB Press Release.

Treasury Department Publishes Financial Sector Assessment Program Documents

On August 28th, the Treasury Department began publishing key documents for the 2015 U.S. Financial Sector Assessment Program (“FSAP”) review. The FSAP is a joint IMF-World Bank program that provides an integrated analysis of financial stability and development issues, and generally includes financial sector analysis, stress testing, and an assessment of the observance and implementation of international standards and codes. The first set of documents includes financial sector “self-assessments,” which review U.S. observance and compliance with three international standards and core principles. Treasury Department Press Release.

FinCEN Ruling on Money Service Business Regulations

On August 27th, the Financial Crimes Enforcement Network issued a ruling on whether the services provided by a company as an Independent Sales Organization (“ISO”) and as a payment processor would make it a money transmitter under the Bank Secrecy Act. FinCEN concluded that the company would not be a money transmitter as a result of its ISO activities, nor would it be a money transmitter because of its payment processor services, to the extent the company complies with the requirements of the payment processor exemption.

Remittance Transfer Rule Revised

On August 22nd, the Consumer Financial Protection Bureau published finalized revisions to the remittance rule. The revisions preserve the rule’s new consumer protections while providing federally insured institutions, such as banks and credit unions, with additional time to provide exact disclosures in certain cases. Under the rule, remittance transfer providers are required to disclose certain third-party fees, as well as any exchange rate that will apply to the transfer. The Dodd-Frank Act contains an exception that allows federally insured financial institutions to estimate third-party fees and exchange rates when providing remittance transfers to their account holders for which they cannot determine exact amounts. The exception was set to expire on July 21, 2015. The revised final rule extends that temporary exception to July 21, 2020. CFPB Press Release.