Law and regulation

New York Attorney General Andrew Cuomo today announced an investigation into predatory health care lending where consumers - especially seniors and vulnerable patients - are being misled about financing terms, causing them to be pushed into debt.

New York Attorney General Andrew Cuomo today announced an investigation into predatory health care lending where consumers - especially seniors and vulnerable patients - are being misled about financing terms, causing them to be pushed into debt.

Countrywide Financial Corp. agreed to pay $600 million to settle shareholder lawsuits in the largest payout so far from the mortgage meltdown.

Pensacola, Fla.-based Pen Air Federal Credit Union has established a new Share It debit card program to benefit five school districts, including Escambia and Santa Rosa.

With new restrictions taking effect and billions in fees at stake, banks are not giving up on overdraft services without a fight.

The Senate Appropriations Committee voted late Thursday to remove an interchange amendment authored by Sen. Dick Durbin.

In their first presentations to analysts after the financial reform bill passed, some bank executives treated the landmark legislation like any other facet of business, sandwiching relevant cost estimates between the usual slides on capital ratios and credit losses.

Visa Inc. on July 28 reported net income of $716 million for the fiscal third quarter ended June 30, down 1.8% from $729 million during the same period a year earlier. Net operating revenue was $2 billion, up 21.2% from $1.65 billion, driven by growth in data processing and international transaction revenue, the company said.

WASHINGTON–The banking industry was caught off guard this week as Sen. Dick Durbin, fresh off a victory to add interchange regulation to the financial-reform bill, mounted another legislative effort on interchange that appears to be gaining momentum.

A Senate subcommittee yesterday endorsed a bill that would cap interchange fees charged to federal government entities for taxes and other services at the lowest market rate, continuing efforts to lower interchange fees charged by credit unions and banks.

A provision in the regulatory reform law that received scant attention during the protracted debate in Congress is already generating more business at some debit networks.

Several marketers are banned from selling mortgage modification or foreclosure relief services under settlements with the Federal Trade Commission.

With the financial regulatory reform bill signed into law by President Obama, the collection industry is bracing for the expected impact of the broad and complex legislation.

American Express Co. remains cautious about the economy and the current regulatory environment, but the Credit Card Accountability, Responsibility, and Disclosure Act will affect the company more than the financial reform, Dan Henry, AmEx executive vice president and chief financial officer, told analysts during a conference call on July 22 to discuss second quarter earnings.

Each 10 basis-point reduction in debit card interchange rates will cost Fifth Third Bancorp about $15 million annually in interchange revenue, Dan Poston, Fifth Third chief financial officer, told analysts during a conference call yesterday to discuss second-quarter earnings, referring to new rates the Federal Reserve Board would determine under a mandate outlined in the new financial-reform law.

The marketers of a “Rapid Debt Reduction” plan who promised to lower interest rates on credit cards – for an upfront fee of up to $899 - agreed to pay $1.5 million to settle Federal Trade Commission charges that they misled consumers.

Credit card issuers have eliminated many practices lawmakers deemed unfair as a result of the Credit CARD Act, most of which went into effect in February. But certain other practices that could put consumers at risk are on the rise, according to a study the Pew Health Group’s Safe Credit Cards Project released July 22.

There is greater concern about what’s to come, than what’s already known about the financial reform bill signed Wednesday by the president. Credit union CEOs attending NAFCU’s 43rd Annual Conference said already burdensome regulatory and compliance demands will become overwhelming in the next few years.