Two Steps Forward, One Step Back: Developments in the Law Affecting Electronic Payments and Financial Services
73 Business Lawyer 277 (2017/18)
Our past surveys have observed that frequent changes in the rules surrounding electronic payments-spurred by both regulation and enforcement actions create uncertainty and make forward progress difficult for many providers. This survey year is no exception: regulators have taken "two steps forward, one step back" on a number of fronts. This survey reports on (1) the proposal by the Office of the Comptroller of the Currency ("OCC") regarding "fintech" charters, which states have challenged in actions still pending- (2) changes to Regulation CC regarding remote check deposit and disputes over altered or forged checks-(3) the Supreme Court's decision in Expression Hair Designs, which may create the potential for challenges to required regulatory disclosures- (4) a modification by the Internal Revenue Service ("IRS") of its demand for Bitcoin user information from a virtual currency exchange, after facing court challenges and congressional inquiries- (5) new payroll card regulations in Connecticut, Pennsylvania, and New York-with the New York rule being invalidated by another state agency, throwing the whole controversy into the state courts- (6) recent enforcement actions by the Consumer Financial Protection Bureau ("CFPB") and Federal Trade Commission ("FTC") regarding unfair and deceptive acts and practices- and (7) the CFPB's "final rule" regarding prepaid accounts. Like the proverbial frog trying to escape from a well, business lawyers who follow these issues must learn to deal with constant movement, albeit in multiple directions.
Hughes, Sarah Jane; Middlebrook, Stephen T.; and Kierner, Tom, "Two Steps Forward, One Step Back: Developments in the Law Affecting Electronic Payments and Financial Services" (2018). Articles by Maurer Faculty. 2774.