Law and regulation

WASHINGTON – The U.S. Senate turned away the concerns of community banks, credit unions and the vast majority of Republican members this afternoon to vote final passage of the financial reform bill by a vote of 60 to 39, sending the measure on for President Obama to sign into law.

Regulatory reform survived its last significant hurdle Thursday with the Senate moving to block further changes and hold a final vote on the bill.

Senate Democrats narrowly blocked a filibuster on the bank bill waged by Republicans this morning and headed toward a final vote on the landmark bill, despite avid opposition by community banks and credit unions over the interchange amendment.

Iowa Republican Charles Grassley announced yesterday he will change his vote on the bank reform bill and vote no this time, but the Democrats still appear to have the 60 votes they need to overcome a planned filibuster by the Republicans when the Senate moves for final passage, expected as early as today.

The Senate has passed legislation delaying the implementation of some of the provisions of the Credit Card Accountability Responsibility and Disclosure Act, potentially avoiding the destruction of millions of gift cards.

With the votes lined up, the Senate is set to vote as early as Thursday on financial regulatory reform. It would then go to President Obama, who is expected to sign the sweeping bill into law soon.

With the votes lined up, the Senate is set to vote as early as Thursday on financial regulatory reform. It would then go to President Obama, who is expected to sign the sweeping bill into law soon.

The final vote on the massive bank reform bill is expected as early as this week, and despite the fact it is almost guaranteed to contain the Durbin interchange amendment bitterly opposed by credit unions, the battle is not over.

An Illinois regulatory agency revoked the license of Creditors Service Bureau of Springfield Inc., a collection agency based in Springfield, Ill., and fined the company $55,000.

Lawsuits filed in the U.S. against units of HSBC Holdings PLC charge that the lender's credit card payment-protection service defrauds disabled, retired and unemployed consumers, according to Bloomberg News.

Filene Research Institute has launched a study to determine the effects the impending interchange amendment in the bank reform bill on credit unions, who are lobbying Congress against the amendment.

Editor's Note: Collections & Credit Risk first published this story on Saturday, July 3. Please check our home page often for breaking news, which can appear on the site long before our pre-scheduled CCR Newsline delivery dates.

Illinois Attorney General Lisa Madigan's office sued former mortgage giant Countrywide Financial Corp. this week for allegedly using discriminatory lending practices for minority borrowers - violations of the Illinois Human Rights Act and the Illinois Fairness in Lending Act.

New obstacles to speedy passage of the financial-reform bill emerged June 29 that likely will postpone a Senate vote on legislation that would reshape the debit card interchange landscape.

Suppose Congress approves the Dodd-Frank Act, and small issuers with less than $10 billion in assets are exempt from debit card-interchange rates the Federal Reserve Board eventually deems “reasonable and proportional.” How will merchants know whose debit cards are exempt?

New York Attorney General Andrew M. Cuomo's office is sending more than 30 new cease-and-desist letters to mortgage rescue companies, warning them to immediately end all misleading and illegal conduct.

A year or so from now, merchants likely will be paying less to accept debit cards, and financial institutions will be earning less revenue issuing them. And some issuers may have to reacquaint themselves PIN-debit brands not associated with Visa Inc. or MasterCard Worldwide.

When final debate on the financial reform bill ended in the early hours of June 25, the new rules surrounding debit card interchange stood unchanged, beyond a few key carve outs announced June 21.

The Arizona Financial Fraud Enforcement Task Force announced multiple indictments charging 38 individuals in various mortgage fraud schemes across the state this month.

House conferees reached an accord Monday with Sen. Richard Durbin, D-Ill., on a provision of the regulatory reform bill that would allow the Federal Reserve Board to regulate interchange fees on debit cards.