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New York Federal Court Grants Bank’s Motion to Dismiss in Wire Fraud Case Involving Elderly Customer

On December 18, the U.S. District Court for the Southern District of New York granted a bank’s motion to dismiss the complaint in a case involving wire transfers of an elderly customer who was the victim of an internet scam....more

In Rem Jurisdiction Matters: Fifth Circuit Clarifies Jurisdictional Requirements Over Attached Funds at Riyad Bank

On October 18, the U.S. Court of Appeals for the Fifth Circuit affirmed a district court’s vacatur of a maritime attachment order, providing a detailed analysis of the requirements for personal and in rem jurisdiction over...more

Consumer Financial Services 2023 Year in Review and A Look Ahead

We are pleased to share our annual review of regulatory and legal developments in the consumer financial services industry. With active federal and state legislatures, consumer financial services providers faced a challenging...more

Amici Argue for Narrow Interpretation of National Bank Act Preemption

A group of non-profit consumer advocacy organizations, the Conference of State Bank Supervisors, and the American Association of Residential Mortgage Regulators filed two separate briefs asking the U.S. Supreme Court to...more

Federal Magistrate Judge Orders CFPB to Produce Employees for Depositions in Citizens Bank Lawsuit

A federal magistrate judge in Rhode Island has ruled that the Consumer Financial Protection Bureau (CFPB or Bureau) must produce three employees for depositions, denying the agency’s motion for a protective order....more

Federal Court Holds That Bank’s Arbitration Clause Fails for Lack of Meaningful Opt-Out

Is an arbitration provision enforceable if it is added to a bank’s deposit account agreement four years after the account is opened and contains no meaningful opt-out clause? According to the United States District Court for...more

CFPB Seeks Further Input on Shifting P2P Fraud Liability to Banks

In an October 27 letter, the American Bankers Association (ABA) expressed concern regarding a proposal currently being considered by the Consumer Financial Protection Bureau (CFPB) that would shift liability from consumers to...more

Bank CEOs Testify Before Congressional Committees on Financial Services

On September 21 and 22, chief executives from the nation’s seven largest banks faced questioning before Congress, marking the third time senior bank officers have testified before Congress in the last three years. Senators...more

OCC Closely Watches as Banks and Fintech Partner

On September 6, Acting Comptroller of the Currency Michael Hsu warned that fintech and big techs partnerships and their forays into payment and lending could lead to increased risk for the banking industry. “My sense is that...more

9/14/2022  /  Banking Sector , Banks , FinTech , OCC , Popular

Banking Groups Challenge CFPB’s RFI on Customer Service

Banking trade groups are challenging a request for information (RFI) issued by the Consumer Financial Protection Bureau (CFPB) regarding customer service at large financial institutions. In a joint letter dated August 22, the...more

Another Win for Banks: Illinois Federal Court Tosses Wire Fraud Claims

A recent decision out of the Northern District of Illinois should help banks defend against increasingly common claims involving fraudulent wire transfers. In Trivedi v. Bank of America, et al., the district court granted the...more

Complaint Dismissed Where Hacker-Induced Wire Transactions Authorized by Bank’s Customer

A federal district court in New Jersey recently dismissed a complaint against a bank filed by a commercial customer duped by a business email compromise incident. The case involved four wire transfers totaling $1.4 million...more

Texas Supreme Court Holds Administrative Wire Transfer Form Does Not Impose Contractual Duties on Bank

In Cadence Bank, N.A. v. Roy J. Elizondo III, PLLC, the Supreme Court of Texas recently held that an administrative form relied upon by a victim of a fraud scam did not impose contractual obligations on a bank to verify...more

4/7/2022  /  Banking Sector , Banks , Wire Transfers

2020 Consumer Financial Services Year in Review & A Look Ahead

2020 was a transformative year for the consumer financial services world. As we navigate an unprecedented volume of industry regulation, Troutman Pepper is uniquely positioned to help its clients find successful resolutions...more

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