Law and regulation

Credit Union National Association on Tuesday said it has terminated talks aimed at minimizing the onerous interchange provisions in the bank reform bill and has changed focus to knocking the provision out of the bill when Senate and House leaders meet to reconcile different versions of the legislation.

Though legislation that would permit merchants to set minimum and maximum limits on card transactions remains pending in Congress, it is gaining a lot of attention among merchant acquirers and independent sales organizations.

Credit Union National Association lobbyists broke off negotiations congressional leaders last Thursday and are instead firing up the CU grassroots to lobby for provisions they hope will minimize the impact of interchange amendments added to the bank reform bill passed by the Senate last week.

Confronted with potentially dramatic reductions in checking overdraft-fee revenues, banks are intensely studying new laws and regulations and searching for quick ways to correct broken product economics and re-engage with customers.

Starting Jan. 1, Vermont merchants will be able to set spending minimums for debit and credit card payments under a bill that became law last week despite concerns from the state's governor.

Payments-industry lobbyists late this week began the uphill effort of trying to eliminate an amendment from the financial-reform bill the Senate passed May 20 that would enable the Federal Reserve to control debit card interchange rates.

After three weeks of contentious debate, the Senate approved landmark financial reform legislation 59 to 39 late Thursday.

New York City Mayor Michael R. Bloomberg and Department of Consumer Affairs (DCA) Commissioner Jonathan Mintz this week announced new collection regulations designed to stop abusive collection tactics.

WASHINGTON — The Senate overwhelmingly rejected a measure from Sen. Sheldon Whitehouse late Wednesday that would require national banks to offer credit based on the interest rate limits in cardholders' states.

New York Attorney General Andrew Cuomo filed a lawsuit today against three national lenders and their affiliated companies for targeting members of the military by selling them high-priced electronics, then luring them into illegal credit plans.

Interchange fees are the largest component of merchant card-acceptance fees, and the merchant lobby has been waging an aggressive political campaign to get government to curb them.

WASHINGTON — Just days after the surprise passage of an amendment to regulate interchange, bankers are bracing for the possible addition of an even stronger measure that would hold them to the interest rate limit in the cardholder's state.

The U.S. Department of Justice has indicted a former supervisor at collection agency GC Services on charges she tampered with checks sent by consumers, directed them to a personal bank account and forged electronic records.

The Reserve Bank of India should set the maximum annual interest rates banks may charge their credit cardholders, a parliamentary committee is suggesting in a new report.

One of the roughly 140 proposed amendments to the financial reform legislation could have serious implications for credit card issuers, but so far the proposal does not seem to have much of a toehold.

Senate Majority Whip Dick Durbin, D-Ill. on May 6 introduced three interchange-related amendments to the Senate’s financial-reform bill, prompting swift criticism from the payments industry.

A lawsuit filed by New York Attorney General Andrew Cuomo's office claims attorney John P. Nicolia sold a collection agency the use of his name and his law firm's name in 2008 and 2009, which the agency then used to threaten bogus legal action against consumers across the U.S. Nicolia, of Williamsville, N.Y., received a total of $141,000 for selling his name, according to Cuomo's office.

Major U.S. banks’ credit card-issuing units brought in billions in interest income during the fourth quarter of 2009, led by JPMorgan Chase & Co.’s Chase Bank USA, which earned $8.43 billion in credit card interest income during the period. Credit card interest income accounted for 87% of the unit’s total interest income of $9.7 billion, which also includes commercial, industrial, installment and some student loans. Mortgage loans are handled by another business unit.

Vermont merchants are a step closer to being able to set minimum purchase amounts for card payments after the state's Senate passed a bill Tuesday giving retailers more control over card acceptance.

The Federal Trade Commission has closed a mortgage foreclosure operation that promoted bogus loan modification and foreclosure relief services, officials announced today. The FTC also imposed a $12 million judgment against the operation.