Law and regulation

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.

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.