May courts look beyond the face of a loan transaction to identify the “true lender”? In a lawsuit filed by California’s financial regulator, a California state court recently answered yes, finding that a fact-intensive inquiry into the “substance” of a loan transaction was necessary to determine who the “true lender”
Continue Reading California Court Applies “Substance Over Form,” Allows True Lender Claim to ProceedFintech
Litigation Between FinTech Companies Follows Class Action Over Cryptocurrency Theft
By Sam Greeley, Ashley Simonsen & Micaela McMurrough on
This past week, co-defendants in a class action related to the theft of cryptocurrency engaged in their own lawsuit over alleged security failures. IRA Financial Trust, a retirement account provider offering crypto-assets, sued class action co-defendant Gemini Trust Company, LLC, a crypto-asset exchange owned by the Winklevoss twins, following a…
Continue Reading Litigation Between FinTech Companies Follows Class Action Over Cryptocurrency TheftFintech Lawsuit Highlights True Lender Risk for Bank Partnership Lending Model
By Ashley Simonsen, Andrew Soukup & Matthew Verdin on
In the wake of rulings upholding federal regulators’ “valid when made” rules, a new lawsuit serves as a reminder that state regulators and class-action plaintiffs’ lawyers may continue to challenge the bank partnership lending model under the “true lender” doctrine.
In early March, the fintech OppFi filed suit to stop…
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A Closer Look: Federal Court Upholds OCC’s & FDIC’s Valid-When-Made Rules
By Andrew Soukup & Matthew Verdin on
Posted in Fintech
Delivering a significant win for the financial services industry, a California federal judge upheld “valid when made” rules promulgated by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) in California v. OCC, No. 4:20-cv-05200 (N.D. Cal. Feb. 8, 2022) and California …
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Overview of South Africa’s Draft National Data and Cloud Policy
If there is a silver lining to most crises, the accelerated move toward digitized commerce globally and in Africa may be one positive outcome of the COVID-enforced lockdown. It is welcome news there that the South African Minister of Communications and Digital Technologies (“Minister”) published the Draft National Data and …
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The French Competition Authority gives its views on the competition issues arising from Fintech
By Johan Ysewyn on
Back in 2020, the French Competition Authority (“FCA”) had announced, in its annual priorities, its interest in the competition implications of the digital revolution in the financial sector, notably in the context of the growth of FinTech, the introduction of blockchain technology and the emergence of “digital giants” in payment
Congress Repeals the OCC’s True Lender Rule
By Matthew Verdin on
On June 30, President Biden signed into law a joint resolution to repeal the Office of the Comptroller of the Currency’s (OCC) so-called true lender rule. The rule was repealed under the Congressional Review Act (CRA), which allows Congress to repeal new federal regulations by passing a joint resolution of disapproval that must be later signed by the president. Federal regulations repealed under the CRA are treated as if they had never gone into effect.
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Final Countdown to POPIA Compliance – Five Critical Steps to Take Before July 1st, 2021
By Deon Govender, Benjamin Haley, Ahmed Mokdad & Dan Cooper on
In Episode 12 of our Inside Privacy Audiocast, together with special guest Advocate Pansy Tlakula, Chairperson of the Information Regulator of South Africa, we discussed the Information Regulator’s mandate, and the implementation of data protection legislation in South Africa. Now, with less than a month to go before South Africa’s
CFPB’s Taskforce on Federal Consumer Financial Law Releases Report
By Eric Mogilnicki & David Stein on
Posted in Fintech
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OCC Interpretation Paves Way for Banks to Custody Cryptocurrency
By Randy Benjenk on
Posted in Blockchain, Fintech
Today, the OCC released an interpretive letter concluding that national banks and federal savings associations (together, “banks”) may permissibly provide cryptocurrency custody services for customers. The letter, written by Chief Counsel Jonathan Gould, describes custody of cryptocurrency as a modern form of the traditional banking activity of providing safekeeping and
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