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May 2008
1)COURT HOLDS OD PROTECTION PROGRAMS NOT CREDIT
UNDER TILA
The U.S. District Court for the Central District of California
has ruled that the payment of checks, transfers or
withdrawals under an overdraft protection program does
not constitute an extension of credit and, as such, does not violate the
Truth in Lending Act (TILA). In re Washington Mutual Overdraft
Protection Litigation, 2008 U.S. Dist. LEXIS 21504 (March 17, 2008).
2)FEDERAL COURT DECIDES FCRA-RELATED
“ADVERTISING INJURY” INSURANCE COVERAGE
DISPUTE
In a somewhat different angle to the current wave of
consumer class actions involving the Fair Credit
Reporting Act’s “firm offer” mandate, the Southern
District of Indiana was recently presented with an
insurance coverage dispute between a mortgage company
involved in FCRA litigation and its insurance provider.
In American Family Mutual Insurance Co. v. C.M.A.
Mortgage, Inc., 2008 U.S. Dist. LEXIS 30233 (S.D. Ind.
Mar. 31, 2008), the insurance provider claimed that the
“advertising injury” provisions contained within the
policies it had issued to a mortgage company did not
cover the mortgage company’s purported FCRA “firm
offer” violations. The Southern District of Indiana
disagreed with the insurance provider’s contentions and
denied the company’s motion for summary judgment.
3) INTERNET-GAMBLING REGS MAY BE HALTED
Banking industry trade groups are making positive
headway to halt the implementation of the Unlawful
Internet Gambling Enforcement Act (Gambling Act).
In general, the Gambling Act prohibits internet
gambling businesses from accepting money or financial
instruments related to internet gambling that violates
federal or state law. The measure does not regulate or
restrict gamblers, but instead places onerous
responsibility on financial institutions by requiring
institutions, as participants in designated payment
systems, to identify and prevent restricted transactions.
On its own, the Gambling Act does little to carry forward
its goal to prohibit the transmission of funds used for
internet gambling. Rather, the enforcement of the new
law must be done through regulations, which were
proposed by Department of Treasury (Treasury) and the
FRB on October 4, 2007. Some in the industry, including
the American Bankers Association, have gone so far as to
assert that the Gambling Act and the proposed regulations
essentially make financial institutions police, prosecutors,
judges and executing marshals in place of real law
enforcement officers..
- Court Holds OD Protection Programs
Not Credit Under TILA
- Federal Court Decides FCRA-Related
“Advertising Injury” Insurance Coverage
Dispute
- Sale of OREO
- Location Information for Borrower
- Changes to Amounts Exempt From
Enforcement of Judgments
- OCC Issues New Rules to Ease
Regulatory Burden
- New Law Amends Registration and
Licensing Requirements for Professional
Fiduciaries
- New OCC Guidance Addresses Fiduciary
Activities of National Banks
- NCUA Proposes to Ease Official
Advertising Statement Rules
- FDIC to Conduct Survey of Banks
Serving Unbanked
- More.....
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