Law and regulation

CHICAGO–Traditional U.S. payments players should adjust their industry approach to address evolving consumer preferences that are causing dramatic market changes to occur, an executive from the Federal Reserve Bank of Atlanta told attendees here May 19 during a panel discussion at the Federal Reserve Bank of Chicago’s annual conference.

WASHINGTON – Responding to progress credit unions and banks have made in Congress to delay or derail new interchange caps that are included in the Durbin Amendment to the Dodd-Frank Act, the National Retail Federation is rolling out a major, nationwide, 60-day lobbying, grassroots and media campaign aimed at ensuring that the law goes into effect as scheduled.

WASHINGTON — Although Senate leaders have confirmed they will allow a floor vote soon on delaying interchange fee restrictions, the timing, outcome and vehicle for suspending the proposed cap are still anyone's guesses.

Thailand’s Ministry of Finance on May 12 announced its decision to launch a credit card financing initiative that is raising concerns among key players in the country’s banking industry.

WASHINGTON – Senate Majority Leader Harry Reid plans to hold a vote on a proposal to delay the cap on debit fees, even as the Senate leader says he is opposed to the delay.

Credit unions and banks urged a federal appeals court in Sioux Falls, S.D., to act quickly to block the Federal Reserve’s implementation of debit card caps, which they insist will break thousands of credit unions or banks.

West Virginia Attorney General Darrell McGraw's office has announced settlement agreements with two debt relief companies, Allied Corporate Connection LLC, based in Mesa, Ariz., and Premiere Debt Solutions LLC, based in Orlando, Fla., that will result in refunds of nearly $34,000 to 41 West Virginia consumers.

First Financial Services, a Lonsdale, Minn.-based collection agency, and its owner must each pay the state $50,000 for violating the Fair Debt Collection Practices Act (FDCPA), the Minnesota Department of Commerce has ordered. Both also lost their licenses.

To promote the use of electronic payments systems in the country, the Central Bank of Nigeria has set new limits on the amount of cash bank customers may withdraw at branches.

Credit card terms have not changed much in the past year, despite some concerns that issuers would hike interest rates and fees on new accounts to offset the effects of restrictions imposed last year under the Credit Card Accountability, Responsibility and Disclosure Act, according to new data from The Pew Health Group.

The question of whether an exemption for banks with less than $10 billion in assets is sufficient protection from the Federal Reserve Board’s proposed new rules for debit-interchange pricing loomed larger than ever during a May 12 Senate Banking Committee hearing during which a lawmaker grilled the nation’s top two banking regulators.

WASHINGTON – Federal Reserve Chairman Ben Bernanke told Senators this morning he is doubtful whether the Fed can develop a rule adequately protecting credit unions and small banks from the cuts in debit fees mandated for the biggest banks.

SAN DIEGO--The financial services industry, now at the height of an expensive national campaign to delay the so-called Durbin amendment, was urged Wednesday to do the opposite: contact elected officials at home to explain the local effects of the legislation.

WASHINGTON – The Federal Reserve is planning to amend its proposal to cap debit fees at a higher rate, setting a compromise in the heated controversy between merchants and banks and credit unions while at the same time threatening efforts by banks and credit unions to delay implementation of the rule.

Banks in the Pacific Island nation of Fiji should invest in educating their customers on the use of ATMs and payment card terminals, the Consumer Council suggests in a May 5 report.

The Ohio Attorney General's office has sued a Cleveland company that offered to help homeowners avoid foreclosure but failed to deliver on its promises of debt relief.

Visa Inc. plans revisit its incentive agreements with issuing banks after the Federal Reserve Board finalizes its capped rate for debit card interchange this summer, executives for the card brand told analysts May 5 during a conference call to discuss fiscal second-quarter earnings.

CHICAGO—Further delay in U.S. migration to EMV chip-and-PIN technology might be another unintended consequence if the Federal Reserve Board’s proposed 12-cent cap on debit card interchange is enforced, two analysts agreed during a panel discussion here May 4 at the Smart Card Alliance’s annual conference.

Debit card issuers’ pain could be a gain for some payments processors.

WASHINGTON — Although it's rare to have a financial services issue play much of a role in a local political campaign, the battle over the Durbin interchange amendment has become an unusually prominent part of the re-election race of Sen. Jon Tester.