Law and regulation

Some credit card issuers are using a “dirty trick” to get around the new Credit CARD Act by marketing small-business cards to consumers, according to U.S. Sen. Charles Schumer, D-N.Y.

In a sign the federal government is continuing to recognize the value of prepaid debit cards, the U.S. Department of the Treasury in January plans to launch a pilot to test the delivery of tax refunds to card accounts held by financially underserved consumers.

Andrew Kahr, a preternaturally intelligent and occasionally controversial architect of the credit card industry, has spent his career solving intricate problems for financial companies, often by finding loopholes in regulation.

The pending overhaul of debit interchange regulations is widely expected to lead to cuts in banks' rewards programs, but it remains unclear how this could affect decoupled debit cards that have long promoted their lucrative rewards offers.

After a brutal 21-hour legislative session ending in the early morning hours of June 25, Senate Banking Committee Chairman Chris Dodd thought regulatory reform was finally finished.

Worldwide Asset Management, a debt-buying unit of West Asset Management, agreed to pay an $85,000 penalty and change its business practices as part of a settlement with Maryland regulators, the Maryland Department of Labor, Licensing and Regulation said Thursday.

New York Attorney General Andrew M. Cuomo today announced criminal charges against an individual who allegedly ran a collection agency while incarcerated in federal prison on unrelated charges.

After a brutal 21-hour legislative session ending in the early morning hours of June 25, Senate Banking Committee Chairman Chris Dodd thought regulatory reform was finally finished.

New York collection attorneys Peter T. Roach & Associates P.C., a “Creditor’s Rights” firm in Syosset, N.Y., announced a victory for their client, mortgage lender HSBC Bank USA.

One of the telemarketers responsible for millions of illegal auto warranty robocalls to consumers last year will pay approximately $2.3 million, give up his Mercedes and be barred from telemarketing, under a settlement with the Federal Trade Commission. The settlement concludes the FTC's case against the operation.

New federal rules regulating fees and expiration dates for all gift cards went into effect Sunday, whether the cards are sold by a merchant, shopping center, credit union or bank.

A debt collector based in Wayzata, Minn. who allegedly told a consumer "I will hunt you down like a dog" was ordered by the Minnesota Department of Commerce to cease operations in the state, according to a report by the Minneapolis Star Tribune.

Arkansas Attorney General Dustin McDaniel sued a pair of companies and their owner last week for allegedly marketing illegal payday loans online to consumers in the state.

Maryland regulators officially revoked the collection licenses of defunct law firm Mann Bracken LLP, seven months after issuing a cease and desist order and suspending the firm's licenses. Mann Bracken closed in January, see story, and up to 25,000 collection lawsuits were dismissed. The firm went into receivership in February.

The largest U.S. card issuers could lose more than $2 billion annually in debit card-related revenues from the combination of new regulations cutting into overdraft fees and pending debit-interchange regulation, according to a new report from Javelin Strategy & Research.

A federal judge in California ordered Wells Fargo & Co. to pay customers $203 million and change "unfair and deceptive business practices" that he ruled led customers to pay multiple overdraft fees.

A probe into alleged predatory lending practices involving health care credit cards has led New York Attorney General Andrew Cuomo's office to subpoena JPMorgan Chase & Co. and Citigroup Inc.

Federal prosecutors charged two people with fraud for helping at least three other people create false credit histories, which in turn allowed them to acquire millions of dollars in mortgage loans. The case marks the first time the Department of Justice has charged individuals with providing customers fake credit histories, according to U.S. Attorney Beth Phillips.

Illinois Gov. Pat Quinn signed a law this week that he says will help protect consumers against deceptive business practices and abusive fees from debt settlement agencies.