Today, the Consumer Financial Protection Bureau (“CFPB”) assumed certain powers and authorities set forth in Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The CFPB is tasked with implementing and enforcing Federal consumer financial laws to ensure that consumers have access to markets for consumer financial
Financial Privacy
Connecticut Latest State to Prohibit Employers from Using Credit Reports in Employment Decisions
By Mike Nonaka on
Posted in Financial Privacy, United States
On July 13, 2011, Connecticut adopted a law prohibiting certain employers from using employees’ or prospective employees’ credit report information in making employment or hiring decisions. Hawaii, Illinois, Oregon, Washington, and Maryland also have statutes that prohibit employers’ use of credit report information for employment purposes. Other states currently considering…
Flurry of Privacy Bills Introduced in Congress; More to Come?
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In light of the number of privacy and data security-related bills currently being considered by Congress, we thought it might be helpful to provide a roundup of the legislation introduced or circulated to date:
Comprehensive privacy legislation:
- BEST PRACTICES Act, H.R. 611 (Rep. Rush): introduced Feb. 10, 2011. Referred
…
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SWIFT Messaging Raises Unique Financial Privacy Issues
By Mike Nonaka on
The Society for Worldwide Interbank Financial Telecommunication, or SWIFT, provides an organizational platform for facilitating international payments. U.S. and foreign financial institutions use SWIFT messages to initiate, process, receive, and settle payment orders. The amount of information exchanged via SWIFT is immense. More than 9,000 financial institutions in 209 countries…
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SEC Imposes Fines under Regulation S-P for the First Time
By Mike Nonaka on
On April 7, 2011, the Securities and Exchange Commission announced a total of $55,000 in fines against three former executives of a securities broker-dealer for violations of the privacy and safeguard rules in Regulation S-P. The fines mark the first time the SEC has imposed administrative fines for violations of…
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State Bills to Restrict Employer Use of Employee Credit Reports Grow in Number
By Mike Nonaka on
Posted in Financial Privacy
As we reported in a prior post, there is a developing legislative trend to restrict employers’ use of credit report information in making adverse employment decisions (e.g., hiring, promotion, termination) regarding prospective or current employees. There are currently 18 states considering legislation in this area: California, Indiana, Kentucky, Missouri…
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Federal and State Legislation to Restrict Employer Use of Employee Credit Reports
By Mike Nonaka on
Posted in Congress, Financial Privacy
On January 19, U.S. Representative Steve Cohen (D-TN) introduced H.R. 321, the “Equal Employment for All Act,” which would amend the Fair Credit Reporting Act to restrict employers from using consumer credit reports to make adverse employment decisions (e.g., hiring, promotion, termination) regarding prospective or current employees. The Act…
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Consumer Financial Protection Bureau Publishes Notice of “Consumer Inquiry and Complaint Database”
By Mike Nonaka on
The deadline to submit comments in response to the Consumer Financial Protection Bureau (CFPB) Implementation Team’s notice to establish the “Consumer Inquiry and Complaint Database” is less than two weeks away.
Title X of the Dodd-Frank Act establishes the CFPB to enforce federal consumer financial laws through rulemaking, supervision, and…
Remote Deposit Capture Services Present Opportunity and Risk
By Mike Nonaka on
According to a Federal Deposit Insurance Corporation survey of depository institutions, approximately 38 percent of institutions offer some form of remote deposit capture (RDC) service. RDC enables a customer to deposit checks and other items electronically through the internet or the customer’s mobile phone. The service was first authorized in…
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Federal Trade Commission Provides Initial Interpretation of the Red Flags Clarification Act in Litigation with the American Bar Association
By Mike Nonaka on
We recently covered the Red Flag Program Clarification Act of 2010 in a blog post and client alert. The Act was intended to narrow the scope of the Federal Trade Commission’s Red Flags rule, which imposes requirements on creditors and financial institutions to detect and deter identity theft. Prior…