Posted September 30, 2014
On September 26, 2014, President Obama signed into law The Examination and Supervisory Privilege Parity Act of 2014, H.R. 5062. The measure requires CFPB to coordinate its supervisory activities with state agencies that license, supervise or examine the offering of consumer financial products or services.
Financial Services Industry Activity
On September 30, 2014, eBay Inc. announced the spin off its PayPal payments unit into a separate publicly traded company. A changing competitive landscape contributed to the separation of opportunities for eBay and PayPal. Each business seeks to capitalize independent opportunities to keep pace of industry change and innovation in commerce and payments.
On September 29, 2014, the Financial Services Roundtable and American Bankers’ Association announced the domain .bank is expected to be ready for use in 2015. The registry is exclusive to banking and financial services providers. The domain will help prevent users from being redirected to fake websites, make it more difficult for criminals to create fake emails from a .bank domain, and include a higher level of encryption.
On September 24, 2014, Walmart and Green Dot Corp. announced GoBank, a checking account product available exclusively at Walmart. The checking account, from Green Dot Bank, includes a linked MasterCard debit card and other consumer-oriented features. GoBank accounts will not be charged overdraft fees, minimum balance fees or monthly fees with qualifying direct deposits, and the monthly membership cost of $8.95 is waived for monthly direct deposits of $500 or more. GoBank also offers a network of 42,000 free ATMs. Neither a ChexSystems score nor credit bureau rating will be used as the basis for determining customer eligibility. Instead, GoBank uses proprietary underwriting techniques to allow almost any consumer who passes ID verification to open an account. The product will be available nationwide by the end of October.
On September 24, 2014, Jimmy John’s notified customers of a payment card security breach. According the announcement, Jimmy John’s learned of the incident on July 30, 2014. While the investigation is ongoing, it appears that customers’ credit and debit card data was compromised after an intruder stole log-in credentials from Jimmy John’s point-of-sale vendor and used these stolen credentials to remotely access the point-of-sale systems between June 16, 2014 and September 5, 2014. The locations and dates of exposure are listed here.
Consumer Financial Protection Bureau (CFPB)
On September 12, 2014, the CFPB issued a final rule which allows for greater supervision of large nonbank international money transfer providers. The CFPB, which already assesses the largest banks’ and credit unions’ compliance with the Remittance Rule, will also supervise any nonbank international money transfer provider that provides more than 1 million international money transfers annually. CFPB estimates that nonbank providers transfer approximately $50 billion annually through about one hundred-fifty million individual international money transfers. The rule takes effect on December 1, 2014.
On September 25, 2014, the CFPB announced Project Catalyst, a research pilot to assess the potential impact of early intervention credit counseling. Barclaycard will offer cardholders who may need help with managing their credit card debt the opportunity to get help from Clarifi. Cardholders can then choose to enroll in Clarifi's credit counseling services at no cost to them. The information obtained by Barclaycard and Clarifi will be shared with the CFPB. The data will be de-identified (appropriate precautions will be taken to ensure that individual consumers cannot be identified through the data).
Department of Defense (DoD)
On September 26, 2014, the DoD announced a proposal that would expand the scope of coverage of the Military Lending Act of 2006 (MLA). The proposal would extend MLA protections to any type of credit covered by the Truth in Lending Act except loans secured by real estate and purchase-money loans. Comments on the proposal are due by November 28, 2014.
Federal Trade Commission (FTC)
On September 24, 2014, the FTC posted a scam alert with a summary of a "bitcoin breakdown." The information highlights virtual currency mining technology.
Federal Financial Institutions Examination Council (FFIEC)
On September 26, 2014, the FFIEC alerted financial institutions to quickly address the “Shellshock” vulnerability by applying patches to their Bash software. FFIEC encouraged financial institutions and their service providers to assess the risk to their infrastructures and execute mitigation activities with appropriate urgency.
Department of Treasury
On September 26, 2014, the Treasury Department's Bureau of the Fiscal Service issued an alert advising that a federal government payroll processing error generated a large number of direct deposits with a settlement date of 9/26/2014 were incorrectly sent with savings codes for checking accounts and checking codes for savings accounts. The notice asked financial institutions to post the entries with the correct codes rather than return them.
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