FTC Puts Online Marketplaces on Notice About Their Responsibilities Under the New INFORM Consumers Act
The INFORM Consumers Act, a legislation focused on maintaining integrity, notification, and fairness in online retail marketplaces, is set to take effect on June 27. In light of this development, the Federal Trade Commission has dispatched letters to 50 online marketplaces across the country, notifying them of their responsibility to adhere to the new act. Read more here.
OFAC Settles with Swedbank Latvia for $3,430,900 Related to Apparent Violations of Sanctions on Crimea
Swedbank Latvia AS, a subsidiary of Swedbank AB, has agreed to pay $3,430,900 to settle potential civil liability for 386 violations of OFAC sanctions on Crimea. These violations occurred between 2015 and 2016 when a Swedbank Latvia customer used the bank’s e-banking platform from a Crimea-based IP address to make payments to individuals in Crimea through U.S. correspondent banks. The settlement amount reflects OFAC’s assessment that Swedbank Latvia’s actions were non-egregious and were not voluntarily disclosed. Read more here.
CFPB Issue Spotlight Analyzes “Artificial Intelligence” Chatbots in Banking
The Consumer Financial Protection Bureau (CFPB) has published an issue spotlight highlighting the growing prevalence and benefits of chatbots in the financial industry. Chatbots, programmed to imitate human interactions, aid in cost reduction for institutions by replacing customer service agents. Some chatbots employ advanced technologies, such as “artificial intelligence,” to provide personalized responses and engage customers through pop-up features. Read more here.
CFPB Finds that Billions of Dollars Stored on Popular Payment Apps May Lack Federal Insurance
The CFPB issued an issue spotlight on digital payment apps used by consumers and businesses, highlighting the potential lack of adequate fund protection during financial difficulties. Funds in these apps may not be covered by federal deposit insurance. To address this concern, the CFPB issued a consumer advisory with steps to ensure fund safety in these apps. Read more here.
CFPB Orders Installment Lender OneMain to Pay $20 Million for Deceptive Sales Practices
OneMain Financial, an installment lender, faces a directive from the CFPB to pay $20 million in redress and penalties. The penalties stem from their failure to refund interest to 25,000 customers who canceled purchases within the “full refund period” and their misleading practices of requiring add-on product purchases for obtaining loans. OneMain Financial will provide $10 million in refunds to affected consumers and pay an additional $10 million as a penalty to the CFPB’s victims relief fund. Read more here.
The Federal Reserve Published a Database of Financial Institutions That Hold a Fed Master Account
The Master Account and Services Database offers a comprehensive and searchable compilation of information regarding the financial institutions that possess access to Federal Reserve Bank master accounts and financial services. Do you need to know if your financial institution is federally insured? Read more here.
Regulatory Activity – Financial Services Law
The Department of Financial Services regularly introduces regulations that address significant policy matters affecting the welfare of New Yorkers. Ensuring fairness and equality, every interested individual in New York is provided with an equitable opportunity to offer feedback on proposed regulations. To adhere to the State Administrative Procedure Act (SAPA), all proposed regulations must undergo a public comment period lasting a minimum of 60 days. Read more here.
