Law and regulation

Mississippi Attorney General Jim Hood's office has charged a Texas couple with wire fraud for bilking $13,000 from a Mississippi family while claiming to be a debt settlement company.

Bank regulators issued 1,143 formal enforcement actions against banks and their holding companies last year, a new record and more than double the 2008 tally.

Colorado Attorney General John Suthers' office has banned three collection attorneys from collecting debts in the state after accusing them of using unfair tactics.

Credit card issuers this week began scrambling to formulate models for what they consider to be “reasonable and proportional” customer penalty fees for late payments and overlimit charges. They must submit their penalty fee models within a month to the Federal Reserve Board, which intends to use the information when it sets final rules implementing the last portion of the Credit Card Accountability, Responsibility and Disclosure Act.

New restrictions on card issuers raising interest on existing balances under the Credit Card Accountability, Responsibility and Disclosure Act is far more important to consumers than the law’s other provisions that also went into effect last week, the results of a recent poll suggest.

The Ohio Supreme Court yesterday suspended the law license of a Columbus, Ohio collection lawyer, who stole $32,600 from a check-cashing business he represented.

The House Financial Services Committee does not plan to pursue interchange legislation this year, according to committee Chairman Barney Frank, D-Mass.

The Federal Trade Commission yesterday announced new rules that require prominent disclosures in advertisements for "free credit reports." The guidelines require companies marketing these services to be more clear that they differ from the government-approved Web site AnnualCreditReport.com, which offers free reports with no strings attached, according to the FTC.

President Obama welcomed implementation of the new credit card law on Monday.

Several credit card issuers this month are taking more “positive, promotional” approaches to introducing new policies and billing-statement changes mandated by a federal law that goes into effect next week, according to new research by Corporate Insight, a New York-based market-research firm.

Starting Feb. 22, lenders must comply with changes in Regulation Z, part of the Credit CARD Act of 2009. This regulation is designed to promote the informed use of consumer credit by requiring disclosures about its terms and cost. It also regulates certain credit card practices and provides a means for fair and timely resolution of credit billing disputes.

Debit card customers of Dutch Bangla Bank Ltd. face paying a 3 taka fee (43 U.S. cents or 31 euro cents) for taking a transaction receipt at the bank’s ATMs under a new policy that took effect last month, an official from the Bangladesh-based bank tells PaymentsSource.

Visa Europe said Wednesday that it plans to go to Hungary's Constitutional Court to appeal a bill passed in December by the Hungarian parliament that restricts bank card transaction commissions, reports Dow Jones.

Credit card issuers are scrambling to add new software-based consumer income-estimation tools to their account-approval processes following the Federal Reserve Board’s release last week of the final rules implementing the Credit Card Accountability, Responsibility and Disclosure Act.

The two leading candidates in the race to become Florida's next governor are arguing over who should take on the task of regulating the state's collection agencies. Both, in this, an election year, say they want the job. Last year, each candidate said the other had failed to investigate rogue agencies even though their current political roles require them to do so.

SourceMedia Inc., publisher of PaymentsSource, today announced the appointment of Douglas J. Manoni as chief executive officer. He replaces James M. Malkin, who has left the company.

SourceMedia Inc., publisher of PaymentsSource, today announced the appointment of Douglas J. Manoni as chief executive officer. He replaces James M. Malkin, who has left the company.

The Federal Reserve Board finalized a rule on Tuesday that is designed to protect consumers from credit card fees and interest rates that jump suddenly.

Financial regulators in Brunei have set restrictions on how small the amounts credit card issuers can set for monthly repayment of credit card debts, according to a directive from the country’s Ministry of Finance. Cardholder incomes also now will determine credit card spending limits, the directive states.

Financial regulators in New Zealand are keeping a close watch on surcharges that some retailers have started to impose for credit card transactions.