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Several banks continue to violate laws prohibiting them from practicing 'tie-ins' for their non-traditional services, such as securities underwriting. Tying arrangements refer to deals in which a commercial bank makes a letter of credit available only to borrowers who use the bank or its affiliates as the bonds' underwriters or placement agents. Observers believe the abusive practice continues to exist and spread largely because the public and regulators often choose to ignore it., Banks have to stay on one side of the law in order not to run afoul of 'anti-tying' provisions. But some allege that banks have been crossing over. Why isn't [...]

A series of changes to Regulation O earlier this year has made some aspects of this complex puzzle less onerous. Yet the transition from the old rules to those finalized […]

Legislative activity in 1993 proved to be favorable for credit grantors and credit bureaus. Although the federal garnishment bill has been ratified by both Senate and Congress, the outcomes of recent regulations, such as the Fair Credit Reporting Act, the federal Bankruptcy Reform and the Electronic Monitoring Privacy Act are yet to be seen. A status update on different state governments' action on proposed credit bills are outlined. Proposals on issues such as telemarketing, loans bilingual language, interest rates, credit bureau reports, late fees, credit deregulation, collection agencies, promotional offerings, rate take downs, notice requirements and credit reporting are among thos mentioned.

The state of Victoria, Australia, enacted the Credit Act 1984 to protect consumers in a wide range of credit transactions. The act replaced the Money Lenders Act 1958 and the regime of penalties largely repeats those of the earlier act. Penalties are levied if the lender has accidentally or purposely failed to inform the debtor of any provisions of their contract. The punishment was quite harsh in that any lapse could render the transaction interest-free. Policy recommendations to adjust the transgression to the fine have been largely ignored.

There is now broad consensus that the credit crisis was sparked by a lack of appreciation of the risks companies were taking and the wide-ranging impact they could have. Scarred [...]

NACM Legislative Conference, March 3-5, 1991 With conclusion of the Gulf War, delegates to the 20th NACM Legislative Conference were able to refocus energy on domestic and economic issues of [...]

Recent ABC filings on trade credit issues The California Department of Alcoholic Beverage Control ('ABC') has filed a significant number of recent accusations against California alcoholic beverage suppliers and retailers [...]

Banks are given no more than seven banking days to determine whether to honor or dishonor a submitted letter of credit (L/C). This procedure, which is contained in the Uniform Customs and Practice for Documentary Credits that is published by the International Chamber of Commerce, is strictly enforced and can result in the payment of claims to the beneficiary despite discrepancies in the L/C. The failure of the bank to properly communicate its intention within the prescribed period can even result in the buyer being released from its obligation to reimburse the bank., A letter of credit (L/C) beneficiary must present complying documents in order to receive payment on an L/C. However, a beneficiary that presents noncomplying documents to the L/C issuing bank [...]

Caldor Inc.'s trade creditors were alarmed when the discount department store filed a Chapter 11 bankruptcy case, terminated its business operations and announced, as part of its liquidation, that any unpaid trade credit claims will not be paid until the bankruptcy case is concluded. However, the only option for Caldor's trade creditors was to present an evidence of their Chapter 11 administrative claims with the court., Recently, in the Caldor Chapter 11 case, trade creditors who extended credit to Caldor had a rude awakening when they discovered to their surprise that Caldor was terminating its business [...]

A fact of life for everyone today is that more and more information is being collected about individuals. Personal, targeted marketing by its very nature requires the retention of as [...]

Shortening the settlement cycle for municipal securities transactions presents some unique challenges but not any insurmountable obstacles. On June 7, 1995, a dramatic change will occur in U.S. securities markets. [...]

Byline: Kate Davidson WASHINGTON â The Consumer Financial Protection Bureau has been supervising institutions for just over a year, and already has found inaccurate âgood-faith estimatesâ in mortgage disclosures, credit [...]

Byline: Justin Stephani The Financial Stability Oversight Council approved a final rule and interpretive guidance on the Council's authority to require supervision and regulation of certain nonbank financial companies, under [...]

The extension of supplier credit is common. Sales are generally made on open account. Normal terms vary by industry, but 'net 30 days' or 'end of next calendar month' are [...]

The terms of supplier credit largely hinge on the relationships between companies, rather than on a national standard. Tax consequences. Interest payments to lenders abroad face a withholding tax of [...]

Given the high costs of loans from local sources, foreign companies and local exporters frequently obtain credit from their suppliers and customers abroad. These loans often exceed the actual productive [...]

Byline: Other This may be, sadly, a record year for foreclosure filings. According to RealtyTrac, the United States is on pace for more than 1 million bank repossessions this year [...]

Byline: Muhammad Wasif Siddiqi, Mazhar-ul-Haq and Kishwar Naheed Baluch Abstract Credit is an important instrument in enabling farmers to acquire commands over the use of working capital, fixed capital and […]

Bankers in the second half of last year raised concerns with the Federal Deposit Insurance Corp. about higher premiums and tighter underwriting requirements, an FDIC ombudsman said Wednesday. The 643 [...]

The Financial Industry Regulatory Authority plans to issue a regulatory notice on the credit it extends to members for cooperating with investigations, according to Susan Merrill, FINRA executive v.p. and [...]

The Federal Deposit Insurance Corp. will vote Oct. 10 on rules detailing how premium credits and rebates will be distributed. Both rules were proposed May 9. The credit proposal, designed [...]

The old filing system One of the world's fastest-growing markets calls in the plumbers OVER a year ago, a whiff of something nasty filled the nostrils of the world's financial [...]

WASHINGTON -- Federal regulators are zeroing in on how best to revamp the annual shared national credit exam, and are aiming to announce the particulars by yearend. Changes in the [...]

Rachel Le Brocq, press and public affairs officer at the BSA, says many measures proposed in the Queen's Speech will have an impact on the financial services sector Last week [...]

The European Consumer Credit Directive could cost the industry millions, warns the Association of Mortgage Intermediaries. The directive is still being drafted but as it stands it would have wide-ranging [...]

Eight financial services trade groups have asked federal regulators to hold off on enforcing 10 provisions of the Fair and Accurate Credit Transactions Act until final rules are published. Many [...]

The Federal Reserve Board and the Federal Trade Commission are sticking by plans to begin phasing in rules stemming from the new Fair and Accurate Credit Transactions Act this spring. [...]

Two federal regulators have issued rules putting key portions of the Fair and Accurate Credit Transactions Act in place. In the first regulation, the Federal Reserve System and the Federal [...]

A conference committee was poised as early as Wednesday night to finalize legislation to add consumer protections to the Fair Credit Reporting Act and permanently block states from setting tougher [...]

Privacy advocates will have to pin their hopes on Senate Banking Committee Chairman Richard Shelby, R-Ala., if they want to see national privacy standards enhanced through legislation extending provisions of [...]

Lawmakers in the House and Senate are debating whether to renew an expiring section of the Fair Credit Reporting Act that blocks states from interfering with the national system of [...]

Who gives you extra when you are an agent seeking value-for-money credit card facilities? Not NatWest Streamline, apparently. The merchant services arm of the Royal Bank of Scotland-owned banking giant [...]

A Treasury Department official is scheduled to testify at a congressional hearing Tuesday on the renewal of a data-sharing preemption provision of the Fair Credit Reporting Act. The witness, unidentified [...]

With experts still skeptical about the ultimate benefits to creditors of the Godot-like bankruptcy reform legislation, lenders may need to rely on their own devices for collecting delinquent and charged-off [...]

The preemption of certain aspects of consumer reporting that were part of the 1996 amendment to the Fair Credit Reporting Act will expire next Jan. 1. Congress has begun debating [...]

Do you have debtors who are always late settling their bills? Changes to late payment legislation are due to be implemented later this year. Many small businesses struggle with serious […]