Troutman Pepper Consumer Financial Services Weekly Bulletin – July 2022 #3 | Troutman pepper

To help you keep abreast of relevant activities, below is a breakdown of some of the biggest federal and state level events impacting the consumer financial services industry in the past week:

Federal activities

State activities

Privacy and cybersecurity activities

Federal activities:

  • On July 21, the U.S. Treasury Department’s Office of Foreign Assets Control announced that it had issued a “finding of violation” against a bank for its failure to freeze the assets of two clients. blacklisted under the Proliferation of Weapons of Mass Destruction Sanctions Regulations, which resulted in the illegal processing of 34 post-designation payments. For more information, click here.
  • On July 20, U.S. Senator Bob Menendez (D-NJ), a senior member of the Senate Banking Committee, alongside Sens. Jack Reed (D-RI), Elizabeth Warren (D-MA), Sherrod Brown (D-OH), Catherine Cortez Masto (D-NV) and Raphael Warnock (D-GA) urged the Consumer Financial Protection Bureau ( CFPB) to do more to protect consumers and hold banks accountable for fraud committed using bank-owned instant digital payment networks. The senators called on the CFPB to update and clarify its rules and guidelines regarding peer-to-peer payments for fraudulently induced transactions. For more information, click here.
  • On July 20, the House Commerce Committee proposed privacy legislation aimed at setting a national standard for how companies use and disclose consumer data. For more information, click here.
  • On July 19, the Federal Housing Finance Agency (FHFA) announced the creation of the Office of Financial Technology to serve as a source of information, support for FHFA in addressing emerging risks, and a vehicle to advance priorities of the FHFA for the adoption and deployment of financial solutions. technology (fintech). At the same time, the FHFA launched a request for information, requesting information on the use of fintech in the housing finance market. For more information, click here.
  • On July 15, the United States Office of Government Ethics issued a legal notice to provide guidance on financial disclosure reporting requirements applicable to non-fungible tokens (NFTs) that represent virtual collectible items (Collectible NFTs ) and fractionated non-fungible tokens (F-NFT). Public financial disclosure filers must disclose ownership of collectible NFTs and F-NFTs when holding such assets for investment or income-producing purposes that are worth more than $1,000 at the end of the reporting period , or if they produce more than $200 of income in the reporting period. period. Public financial disclosure filers must also disclose purchases, sales, and exchanges of collectible NFTs and F-NFTs that qualify as securities. For more information, click here.
  • On July 14, the United States House of Representatives approved the ENABLERS Act (Establishing New Authorities for Business Laundering and Enabling Risks to Security), with bipartisan support, as part of the National Defense Authorization Act (NDAA) for 2023 One of the bill’s authors, Rep. Tom Malinowski (D-NJ), called it “the most significant update to U.S. anti-money laundering legislation since the PATRIOT Act.” For more information, click here.

State activities:

  • On July 20, New York Attorney General Letitia James and the Federal Trade Commission (FTC) announced the resumption of $34.2 million for 46,000 troops, allegedly deceived by a national jewelry retailer. According to the press release, the retailer used “deceptive marketing tactics to lure active duty military members into their finance program, falsely claiming that investing in the program would improve military credit scores. Instead, servicemen were tricked into getting high-interest loans on overpriced, shoddy jewelry that saddled them with thousands of dollars in debt and worsened their credit. For more information, click here.
  • On July 19, the California Attorney General led a coalition of 10 attorneys general in issuing a comment letter to Congress, urging it to respect the role of states in enforcing and enforcing strong consumer privacy laws. In the letter, the attorneys general call on Congress to create a bedrock of consumer privacy laws that do not prejudge the ability of states to create legislation to address changing technologies and data protection practices. “As our markets continue to change, states must maintain the ability to respond when needed,” Attorney General Bonta said. “Our states have demonstrated that we are up to the task of protecting privacy, and we welcome federal action that will help us continue this work.” For more information, click here.
  • On July 15, the California Department of Financial Protection and Innovation (DFPI) issued an invitation to comment on proposed additions to the regulations, implementing the Debt Collections Licensing Act (DCLA). According to the solicitation, the new provisions relate to “the DCLA’s scope, annual report, and record retention requirements.” Regarding the potential scope of these regulations, the proposed additions: (1) define “original creditors” and propose to generally exclude them from licensure unless certain criteria apply; and (2) exclude from the permit “the person[s] sole servicing of non-defaulted debts on behalf of an original creditor[.]”For more information, click on here.

Privacy and cybersecurity activities:

  • On July 21, the U.S. Senate Committee on Commerce, Science, and Transportation scheduled a July 27 markup of two children’s privacy bills — the Online Privacy Protection Act. children and young people and the Child Online Safety Act. The Children’s and Young People’s Online Privacy Protection Act aims to limit children’s data collection and use practices, while the Children’s Online Safety Act focuses on prohibiting algorithms and targeted advertising to children 16 and under. To view the ad, click here.
  • On July 20, the House Commerce Committee proposed privacy legislation aimed at setting a national standard for how companies use and disclose consumer data. For more information, click here.
  • On July 19, Federal Communications Commission Chairman Jessica Rosenworcel sent a letter to the nation’s 15 major cellphone providers, asking about their data retention policies and privacy notices. The letter also questioned vendors’ processes for sharing geolocation data with law enforcement and other third-party data-sharing agreements. To display the letters, click here.
  • On July 19, the House Energy and Commerce Committee released an amendment to replace the US Data Protection and Privacy Bill. The amendment makes several notable changes, including changing the effective date of the private right of action from four years to two years after enactment, providing the California Privacy Agency with ‘Enforcement Authority and the addition of technical changes to the definitions of “Covered Entity” and “Service Provider.” To view the changes, click here.

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