Law and regulation

The Federal Reserve Board March 23 announced final rules that limit the fees and expiration dates for certain prepaid products, primarily open and closed-loop gift cards. The final rules take effect Aug. 22.

One of the new credit card law's lesser-known provisions is funneling distressed borrowers to credit counselors, an industry once tarred as predatory. In an ironic twist, that outcome pleases consumer advocates more than it does some bankers.

The operators of a mortgage foreclosure rescue company are banned from selling mortgage relief services under a settlement with the Federal Trade Commission and the states of California and Missouri, which sued them in 2009 as part of a federal-state crackdown on mortgage loan modification and foreclosure relief scams.

One of the new credit card law's lesser-known provisions is funneling distressed borrowers to credit counselors, an industry once tarred as predatory. In an ironic twist, that outcome pleases consumer advocates more than it does some bankers.

Australia’s central bank is likely to continue regulating payment card interchange fees indefinitely, at least one analyst predicts.

The four organizations representing the nation’s accounts receivables management industry are calling on Congress to keep the Federal Trade Commission as the exclusive regulator of debt purchasers and collectors. The unprecedented action by the trade groups to come together is a response to proposed legislation that would strip the FTC of its powers and place the industry under a new authority.

Banking executive Charles J. Antonucci Sr., the former president and CEO at Park Avenue Bank of New York, was arrested Monday on charges including allegations that he defrauded regulators.

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.