A Primer on State Consumer Financial Regulation: What Businesses Need to Know Now: Venable LLP

The landscape of consumer financial services is shifting, driven by a broader deregulatory trend at the federal level. In this environment, companies must still address federal consumer financial law compliance and navigate a patchwork of state laws that often exceed or differ from federal standards. Below is a primer on key areas of state consumer financial regulation, now more important than ever for businesses seeking to stay compliant and competitive.

1. State Licensing Laws for Financial Services Providers

Most states require licensing for nonbank financial services providers—lenders, loan servicers, mortgage brokers, money transmitters, debt collectors, debt relief services, and sales finance companies. State regulators, such as banking departments or financial services agencies, oversee these licenses and set compliance obligations that can include background checks, minimum net worth standards, compliance programs, and periodic reporting. These statutes often include intricate change of control requirements, which may trigger licensing obligations, regulatory notifications, or even new applications when ownership structures shift. These requirements vary widely by state and statute, adding complexity to mergers, acquisitions, and other corporate transactions. Many states coordinate licensing via the Nationwide Multistate Licensing System (NMLS), although the specific requirements vary considerably by jurisdiction.

Read more at JD SUPRA

New Fed Payments Study Details Card Use in the US: Federal Reserve Bank of Atlanta

Last week, the Federal Reserve released new information about card payments and alternative payment methods by consumers and businesses in the United States. Specifically, the latest Federal Reserve Payments Studyicon denoting destination link is offsite looks at general-purpose (GP) credit, non-prepaid debit, and prepaid debit card use. At a high level, the data show that consumers are continuing to dominate the card space, with 94 percent of GP card payments and 81 percent of spending on GP cards in 2022.

Overall, most card payments—58 percent—were made using non-prepaid debit cards, while credit cards were used for 36 percent of payments, and 6 percent of payments involved prepaid debit cards.

Other notable takeaways:

Non-prepaid debit cards are almost exclusively a consumer product, with 97 percent of payments with these cards by number and 91 percent by value attributed to consumers.

Credit cards are the card type most used by businesses, as they account for 9 percent of credit card payments by number and 26 percent by value in 2022. The average credit card payment by a business—$259—is almost three times the size of the average credit card payment by a consumer at $78. Some of these payments by businesses are likely payments that in past years would have been made with paper checks.

Read more at Federal Reserve Bank of Atlanta

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Digital Tools for Underbanked Populations

New technologies have the power to break down old barriers and provide all-around access to financial services.

Access to financial services is the backbone of economic growth and stability. While many people worldwide remain underbanked, finding it difficult to access traditional banking or credit, many barriers stand in the way of global inclusion. In many instances, these barriers take the form of stringent standards that are practically impossible for the average person to meet. The effects from this exclusion have far-and-wide effects, going as far as to significantly limit the individual’s ability to save, invest or develop tangible assets.

However, digital tools are beginning to reverse the order of traditional financial services; new and inclusive channels of finance are opening. Mobile banking apps, digital wallets and alternative credit platforms carry the promise of new ideas for helping underserved communities. These tools can deliver a more available, low-cost and user-friendly way to address their finances and allow financial sector approaches to get to regions where traditional banking infrastructures are limited or absent.

Read more at KIPLINGER

DOGE cancels 136 Consumer Financial Protection Bureau contracts in DC, Maryland, Virginia

The "Wall of Receipts" lists 216 canceled Consumer Financial Protection Bureau contracts, and most are with businesses in the DMV area.

WASHINGTON — One of the recent targets of President Donald Trump’s attempt to rapidly shrink the government is the Consumer Financial Protection Bureau. Now, Elon Musk’s Department of Government Efficiency says it has canceled more than 100 contracts with the agency in D.C., Maryland and Virginia so far on its “Wall of Receipts” website.

The CFPB was created to protect Americans from predatory banking practices. It one of a number of reforms institued by the Dodd-Frank Act in the wake of the 2008 housing and financial crisis. But throughout the past month, the Trump administration has been dismantling it. The newly-installed Office of Management and Budget Director Russel Vought ordered the agency to stop all its work and to close its building in an email Feb. 8. 

Read more at WUSA9

Are Credit Scores the Key to Healing Our Economy and Democracy? 

America’s financial health should be a national concern and addressing this concern starts with our credit scores.

The difference between a 500 credit score and a 700 credit score is not just about the interest rate on a car loan—it’s about the quality of your life. Credit scores can determine economic stability, influence longevity, and affect the safety of our neighborhoods, the strength of our communities, and even the resilience of our democracy. 

A 700-credit-score America is a more hopeful, more united, and more prosperous America. I believe that raising credit scores by 100 points, neighborhood by neighborhood, community by community, could stabilize the nation.

But right now, too many communities—urban and rural, Black and white—are trapped in a 500-credit-score reality. Financial stress in these communities fuels division, hopelessness, and too often, unrest.

Read more at TIME

Emerging Technologies and Trends: E-Complish

Currently, along with the boom in AI, there are three significant developments taking place in the mobile payment industry:

• Blockchain and cryptocurrencies offer transparent transactions through decentralized networks with low fees and cross-border transfers. Significant players like PayPal have created their coin denominated in US dollars.
• Wearable devices such as smartwatches and fitness trackers can now support payments with a simple wrist tap. This convenience, currently limited to watches, is expected to expand to other wearables.
• Voice-activated payments are also gaining momentum through popular voice assistants like Siri, Google Assistant, and Alexa. This technology not only offers a hands-free experience but also enhances the accessibility of mobile applications.

Read more at E-Complish

FDIC Wants to Lessen Scrutiny Into Banking Mega-Mergers

The FDIC wants to roll back a policy that had increased oversight into large bank mergers.

The proposal unveiled by the Federal Deposit Insurance Corp. (FDIC) Monday (March 3) would rescind the group’s 2024 Statement of Policy on Bank Merger Transactions, replacing it — for the time being — with an earlier merger rule amid a wider examination of the merger review process.

“The proposal approved today seeks to address concerns that the 2024 Statement added considerable uncertainty to the merger application process,” the regulator said. “While the FDIC considers broader revisions to its merger policy, the FDIC is proposing to return to its historical approach, which is well-understood by market participants.”

Under the previous rule, mergers that would create financial institutions with assets of at least $100 billion would be subject to “heightened financial stability analysis.”

Read more at PYMNTS.COM

Consumer Finance’s Deregulatory Shift - The Evolving Role of Compliance: Venable LLP

With federal regulatory pressure easing, consumer financial services companies are well positioned to pursue growth with fewer potential roadblocks. For in-house counsel and compliance professionals, this shift should not signal obsolescence—it creates an opportunity to lean into smarter, more strategic support for business initiatives. 

Deregulation doesn’t mean disregarding compliance; it means right-sizing efforts to match the new environment. Without the weight of aggressive federal oversight, companies may be able to move faster—but staying on course still requires experienced professionals who understand how to translate regulatory wins into business wins.

Some of the following insights emerged from a recent conference session with consumer financial services leaders. The discussion focused on navigating the evolving legal landscape, including the administration’s "pause" on the Consumer Financial Protection Bureau (CFPB) and the broader deregulatory environment at the federal level.

Read more at JD SUPRA

How Treasury Automation Solves Lending’s Biggest Challenges: PAYLIANCE

Treasury Automation: A Game-Changer for Lenders.

Imagine a world where cash flows seamlessly through your operations. Payments are reconciled automatically, compliance is a built-in process, and your team can focus on strategic growth. This isn’t just a vision—it’s the reality that treasury automation delivers.

At Payliance, we’ve developed a Treasury Automation Service that addresses the unique challenges of lending operations. Here’s how it works and why it matters.

How Treasury Automation Works

1. Customizable Treasury Workflows

Lenders don’t operate in one-size-fits-all environments, and neither should their treasury solutions. Payliance’s platform allows you to configure settlement accounts by merchant, investor group, ISO, or location, ensuring cash flow management aligns perfectly with your organization’s structure.

2. Seamless Integration and Automation

Read more at PAYLIANCE

Investigating the real impacts of debanking in America: BROOKINGS

Chairman Scott, Ranking Member Warren, and members of the Banking, Housing, and Urban Affairs Committee, thank you for the opportunity to testify on the consequences of debanking in America. I commend the Committee for focusing on this real and pressing problem. Access to a bank account is a prerequisite to full participation in America’s economy. Barriers to having a bank account for consumers and businesses have to be identified and lowered. This is an issue I have spent years researching, analyzing, and working on during my tenure in public service, including the honor and privilege of working for this Committee for over eight years.

My testimony explains several factors that have driven debanking, with a focus on individuals. I then look at the progress that has been made in bringing people into the banking system, then conclude with policy recommendations for the new administration, financial regulators, the financial services industry, and Congress to tackle debanking and increase financial inclusion.

Read more at The Brookings Institution

Counterfeit Cards Persist: Is the Magstripe to Blame? Federal Reserve Bank of Atlanta

I recently traveled to London for a few days without any cash or coin. I brought my United States (US)-issued debit card and a couple of US-issued credit cards and tapped them around the city, no signature or PIN required. Sometimes, I used embedded payments through apps. Not once did I swipe a magstripe-enabled card.

That's because the United Kingdom (UK) began migrating to EMV chip-card technology in 2002. In 2007, the UK started issuing EMV chip cards for contactless and mobile tapping payments. No PIN required. No magstripe included.

Magstripe information is received in the clear by the card reader and can be easily intercepted for cloning. Mastercard and Visa organized EMVCo in 1999 to combat card-present fraud across the globe. Migration to EMV chip-card technology was intended to lower card-present fraud, especially counterfeit fraud.

Read more at Federal Reserve Bank of Atlanta

Gold prices soar 35% to record highs — why experts say the rally isn’t over yet

With stocks, crypto and numerous other investment options available, who would have thought that gold — a precious metal used in trade for millennia — would be the one going “absolutely nuts” in 2025?

But that’s exactly what’s happening. Gold prices have surged 35% over the past year, recently topping the $2,900 per ounce mark. Rick Harrison, owner of Gold & Silver Pawn Shop in Las Vegas, has noticed the trend firsthand.

“My suppliers are limiting the amount of gold they will sell you because they can't get any in. I mean, it's gone absolutely nuts,” Harrison said in an interview with Fox Business.

Read more at MONEYWISE

Americans Continue to View Several Economic Issues as Top National Problems: PEW

Sharp rise in the share of Democrats who view ‘the state of moral values’ as a very big national problem

At the start of President Donald Trump’s second term, Americans see a host of economic issues – from inflation to the affordability of health care and the federal budget deficit – as top problems facing the country

With most adults continuing to say the nation’s economy is in only fair (45%) or poor (31%) shape, large shares of the public – including majorities of Republicans and Democrats – see multiple economic considerations as very big national problems.

Today, 63% say inflation is a very big problem for the country. This is comparable to last May and down from a high of 70% in 2022.

Read more at PEW RESEARCH CENTER

How Programmable Payments Are Shaping the Future of Finance: Federal Reserve Bank of Atlanta

When I was first introduced to computers, programming languages like COBOL, Fortran, and Pascal were standard. None of them were particularly user-friendly, especially for someone like me who isn’t a natural coder. Over time, new languages and tools appeared, making programming more accessible.

Today, we have low-code and no-code icon denoting destination link is a video fileicon denoting destination link is offsite platforms that allow people with little to no coding experience to build apps. Just as programming has become easier, payments are becoming programmable, offering automation, simplicity, and flexibility.

Programmable payments are automated transactions that occur when specific conditions or events are met. Unlike traditional payment methods, which can rely on manual approvals or fixed schedules (think monthly software transactions), programmable payments offer a more dynamic approach. For instance, a programmable payment might only occur when a product is delivered or a service is completed.

Read more at Federal Reserve Bank of Atlanta

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Why Rent-to-Own Is Catching on With Wealthy Home Buyers

Rent-to-own deals are nothing new. These transactions, in which a portion of the buyer’s monthly rent payment is ultimately applied toward a down payment, traditionally have been used by home buyers who might not otherwise have been able to pull together a down payment.

Now, real-estate agents are reporting that affluent home buyers are using rent-to-own transactions as well, albeit for other reasons. 

“Buyers of expensive homes don’t necessarily have an issue paying the price, but the cost of borrowing right now is really high, and many believe it will become cheaper to borrow, so renting to own allows them to stabilize a home’s price now, start living there and wait to close when they potentially have the option to get better financing,” said Kirsten Jordan, an associate broker at Douglas Elliman Real Estate in New York City. 

Read more at Realtor.com

Can Banks Deliver the Personalized Financial Wellness Tools Consumers Crave?

Consumers expect their banking organization to provide the advanced digital tools needed to navigate an increasingly complex financial landscape. By demonstrating empathy towards people's financial wellness, financial institutions will increase trust, loyalty, sales and revenues.

Customers who believe their financial institution cares about their financial health are three times more likely to be "very satisfied," three times more likely to recommend their primary financial institution, and five times more likely to be interested in purchasing additional products and services from their primary financial institution, according to a recent Financial Health Network study. In other words, showing empathy for the financial wellness of customers provides an opportunity for banks and credit unions to build trust, enhance loyalty, and increase sales and profitability.

The good news is that more and more financial institutions are providing digital financial wellness tools. Unfortunately, there is a significant gap between what consumers want and what they believe their financial institution is providing. For instance, the same study from the Financial Health Network found that 80% of consumers expect their primary financial institution to help them improve their financial health, but only 14% believe their bank or credit union is actually delivering on this preference.

Read more at The Financial Brand

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