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On March 7, 2018 the FDIC ordered the Bancorp Bank to pay a penalty and to reimburse consumers for overcharges on prepaid cards. The Order requires Bancorp Bank to pay a $2 million civil money penalty and to make approximately $1.3 million in restitution payments to about 243,000 consumers harmed by unfair and deceptive acts and practices involving the assessing of transaction fees greater than those disclosed by the bank. The FDIC also found that […]

On March 6, 2018 the Consumer Financial Protection Bureau (CFPB) issued a final rule to help mortgage servicers communicate with certain borrowers facing bankruptcy. The revisions to Regulation Z give mortgage servicers more latitude in providing periodic statements to consumers entering or exiting bankruptcy, as required by the Bureau’s 2016 mortgage servicing rule. The 2016 mortgage servicing rule requires that servicers send modified periodic statements or coupon books to certain consumers in bankruptcy starting April 19, 2018. […]

Daylight Saving Time (DT) begins on March 11, 2018 at 2:00 a.m..  It ends on November 4, 2018. What does DT have to do with TRID? The TRID rules under Regulation Z require creditors to disclose the time zone applicable to its location when disclosing the date and time the interest rate lock and estimate of closing costs will expire on the loan estimate. As a result, financial institutions located in areas that observe DT […]

In 2016 the Second Circuit Court of Appeals’(NY, Connecticut, and Vermont) recent decision in Madden v. Midland Funding, LLC held that a nonbank entity taking assignment of debts originated by a national bank is not entitled to protection under the National Bank Act (“NBA”) from state-law usury claims. Apparently, the Court did not considered the “Valid-When-Made Doctrine”—a longstanding principle of usury law that if a loan is not usurious when made, then it does not […]