Law and regulation

The Federal Reserve's forthcoming regulations on debit interchange may settle a long-running debate over whether fraud costs and risks are high enough to justify banks' current fees.

Less than one-fourth of consumers have signed up for debit card overdraft coverage from banks, and 70% say they want to continue to exercise choice in their debit-overdraft options, suggest the results of a survey Consumer Reports publisher Consumers Union released Nov. 16.

Mississippi Attorney General Jim Hood released a statement last week warning consumers about a potential debt collection scam in Mississippi, according to ACA International, the association representing collection agencies and creditors.

The fight over debit card overdraft fees is not over, according to a consortium of consumer-advocacy groups that vows to keep the pressure on regulators to force significant changes in how banks handle such fees.

Though the Consumer Financial Protection Bureau has jurisdiction over a wide range of financial products, Elizabeth Warren is making credit cards her top priority.

Debit card issuers' rewards programs are already being rewritten — and in some cases eliminated — in advance of the Federal Reserve's new interchange rules.

West Virginia Attorney General Darrell McGraw today announced settlement agreements with three unlicensed collection agencies that will result in an estimated $1.3 million in cancelled debts for 161 West Virginia consumers and $15,337 in cash refunds, according to a news release.

The U.S. Supreme Court on Nov. 9 will hear oral arguments in a case that may determine whether card issuers may handle customer disputes through arbitration or potentially more costly class-action lawsuits, industry experts say.

Collection agency Unicredit America Inc., based in Erie, Pa., agreed Tuesday to cease collection tactics that Pennsylvania regulators say included a sham courtroom where customers were summoned, see story.

More than half a year after the centerpiece protections of a sweeping overhaul of credit card regulation took effect, portfolio yields appear to have stabilized at their highest levels in two decades.

The outcome of Tuesday’s Election Day results could have meaningful implications for the card industry, including affecting the odds of credit card interchange legislation emerging next year, analysts at New York-based equity firm Keefe, Bruyette & Woods said in a report released Monday.

Effective Jan. 1, merchants and payments companies must ensure their systems comply with versions 2.0 of the Payment Card Industry and Payment Application data-security standards the PCI Security Standards Council released Oct. 28.

Setting a limit on credit card interest rates could adversely affect several government programs seeking to provide Filipinos with financial services, contends the Bankers Association of the Philippines regarding plans in that country to cap card interest rates.

Progress in the creation of the Single Euro Payments Area continues, but the banking industry still will not meet the voluntary December 2010 deadline for SEPA credit transfers and direct debits, contends the European Central Bank, which now is encouraging European legislators to set a mandatory timeline.

Despite reporting a strong third quarter, American Express Co. remains focused on challenging a U.S. Department of Justice lawsuit over alleged merchant steering and how it might affect the brand’s cardholders.

The Merchants Payments Coalition is crying foul about Bank of America Corp.’s announcement this week that it took a $10.4 billion third-quarter goodwill charge to counter impending reductions in debit-interchange income.

NetSpend Holdings Inc.’s initial day as a public company fared well, but it might have done better had it debuted on the market a week earlier, according to one analyst.

NetSpend Holdings Inc.’s initial day as a public company fared well, but it might have done better had it debuted on the market a week earlier, according to one analyst.

Total System Services Inc. this month announced new and extended payment-processing service agreements with three banks outside the U.S.

West Virginia Attorney General Darrell McGraw on Tuesday sued an Arizona-based debt relief company and its owner in hopes of banning the company from doing business in the state.