Executive summary Federal regulators have issued an advance notice of new proposed cybersecurity standards. The notice invites comment on enhanced cybersecurity standards for regulated entities with total assets of $50 billion and certain of their service providers. The potential new standards don’t apply (yet) to regional or community banks. But those banks should consider implementing aspects of the proposed standards into their cybersecurity practices, consistent with their resources and perceived risks. Specifically, the proposed standards…
Regional and community banks: proposed federal cybersecurity regulations don’t apply to you (yet) but do offer valuable strategies.
The Supreme Court Will Answer Whether Collection of Time-Barred Debt in Bankruptcy Violates the Fair Debt Collection Practices Act
Lots of people and companies buy old debt—for example, hedge funds, private equity firms, and even some commercial bank affiliates. Typically, this is debt that the original creditor has charged off and sold for a fraction of the legal balance. In some cases, the debt has grown so old that a statute of limitations makes it technically unenforceable. But that doesn’t always stop the debt buyer from attempting collection. A few weeks ago, Jeff Novel…
Fifth Circuit holds bank overtime claims should be arbitrated, providing guidance on employer-friendly delegation clauses.
Readers may be interested in my latest post on the Law in the Workplace Blog. It discusses a recent Fifth Circuit decision requiring that a bank employee arbitrate his class action Fair Labor Standards Act claim.
New York’s Proposed Banking Cybersecurity Regulation, And Why It’s Relevant To Community And Regional Banks Outside Of New York.
On September 13, 2016, New York’s Department of Financial Services announced a proposed new cybersecurity regulation covering banks, insurance companies, and other financial service providers. The regulation goes into effect on January 1, 2017. In sum, the proposed regulation requires covered entities to: establish a cybersecurity program; adopt a written cybersecurity policy addressing a range of required topics; designate a Chief Information Security Officer (“CISO”) responsible for implementing the cybersecurity program and reporting to the…
Attempts To Collect Time-Barred Debt Provide Fertile Ground For FDCPA Violations In The Fifth Circuit
In Daugherty v. Convergent Outsourcing, Inc., the Fifth Circuit Court of Appeals held that a collection letter that is silent as to litigation, but which offers to “settle” a time-barred debt without acknowledging that such debt is judicially unenforceable, can be sufficiently deceptive or misleading as to violate the Fair Debt Collection Practices Act (“FDCPA”). According to her complaint, Roxanne Daugherty accumulated $12,824.24 in credit card debt. After Daugherty defaulted on the debt, LVNV Funding,…
CFPB Finalizes Amendments to Mortgage Servicing Regulations
The Consumer Financial Protection Bureau (“CFPB”) issued its final rule setting forth amendments and clarifications to mortgage servicing regulations on August 4, 2016. The final rule will implement new servicing regulations including the following: Additional foreclosure protection for borrowers. If a borrower becomes current on his or her payments after submitting a prior, complete loss mitigation application, mortgage servicers will be required to follow loss mitigation requirements more than once during the life of a…
What Conduct By a Lender or Servicer Constitutes Waiver of Acceleration?
In Martin v. Federal National Mortgage Association, No. 15-41104 (5th Cir. Feb. 22, 2016), the Fifth Circuit issued its fourth opinion in recent months rejecting a borrower’s assertion that a mortgage servicer waived acceleration of a loan by engaging in conduct inconsistent with acceleration. The Court noted that Wells Fargo accepted payments only after the borrower’s default in 2009, not after the bank had accelerated the note and that such activity was consistent with the…
Payment at Foreclosure Sale Must Be Made Immediately or Within Reasonable Time.
Jeff Heck (“Heck”) sued CitiMortgage, Inc. (“CitiMortgage”) over CitiMortgage’s failure to allow his purchase of real property at a non-judicial foreclosure sale after Heck successfully bid on the foreclosure property, was given 20 minutes to obtain a cashier’s check, did not return in the allotted time and the property was sold to another buyer. In affirming the trial court’s dismissal of Heck’s lawsuit, the United States Court of Appeals for the Fifth Circuit found that…
FDIC Encourages Banks to Step up Cyber Security
The Federal Deposit Insurance Corporation (FDIC) is the newest entity in a long line of governmental and corporate interests to voice concern over cybersecurity measures taken by banks and other financial institutions. The FDIC recently published its Supervisory Insights Vol. 12, Issue 2, Winter 2015 Article laying out a framework for enhancing cybersecurity for banks and financial institutions. The FDIC article focuses on the threats posed by cyber-attacks to banks and financial institutions, and how…
Wyndham, Hyatt, and the FTC’s Top Ten List for Cybersecurity
In light of the recent data breach at Hyatt Hotels, which affected 250 hotels in 50 countries, we thought it timely to discuss the fallout from another hotel data breach: namely, the recent consent order entered in the FTC’s action against the Wyndham hotel chain.[1] This post discusses the Wyndham consent order and FTC guidance based on numerous similar orders. If your business is not at least attempting to comply with the general best practices…