Risk, Regulation and Responding to Consumer Complaints: A Dive Into the EFTA and Consumer Protection

2023 End-User Payments Fraud Symposium

October 16, 2023 from 2:00 pm to 2:50 pm (EDT)

Fintechs are expected to constitute almost 25% of all banking valuations worldwide by 2030 according to the Boston Consulting Group and more banks and credit unions are providing banking as a service” to fintech partners. Simultaneously, fraud continues to expand and the schemes are increasing in sophistication, often targeting users of emerging fintech platforms. In seeking to protect consumers, the Consumer Financial Protection Bureau has reinterpreted Regulation E such that an end-user who is scammed into making a payment or sharing credentials has not really authorized that transaction. This opens the door for expanded liability for financial institutions and their fintech partners. This session will explain how the interpretation and enforcement of the EFTA and Regulation E have evolved along with regulators’ consumer protection expectations. The presenters will then delve into the nuts-and-bolts of onboarding due diligence on fintech partners and ongoing monitoring of Regulation E compliance programs and complaint management practices, including tracking of consumer complaints to monitor for potential Regulation E violations and UDAAP concerns. This session will be presented by Sarah Fernandez, Director, Risk Advisory Services at Kaufman Rossin, and Matt Luzadder, Chicago Office Managing Partner at Kelley Drye & Warren LLP.