Posts Tagged ‘Laura A. Scott’

Thinking About Becoming a Card Issuer? Think Carefully Before You Act

Tuesday, September 2nd, 2014

por_Scott_Laura_AAuthor: Laura A. Scott (bio)

Phone: 812.452.3557

Email: [email protected]

As the popularity of prepaid cards, credit cards and debit cards as a method of payment increases, more and more banks are being approached by program managers to be a card issuer.  Any sort of payment card must have an underlying relationship with a depository financial institution.  However, before a bank enters into a contract with a card program manager, there are several things that a bank should do: (more…)

When to Blow the Whistle: Suggestions for Financial Institutions

Thursday, August 7th, 2014

por_Scott_Laura_AAuthor: Laura A. Scott (bio)

Phone: 812.452.3557

Email: [email protected]

Sometimes smaller financial institutions may be unsure about the appropriate actions to take when they suspect that a customer may have questionable transactions.  Financial institutions are generally aware of the circumstances that should lead them to file a suspicious activity report or “SAR”.  However, some banks may wonder if, in certain circumstances, filing an SAR is enough.  Particularly if it appears that the customer is using the bank’s services in perpetuating their fraud, banks may sometimes be unsure of what additional action may be needed.  (more…)

Does Your Financial Institution Have a Culture of Compliance?

Tuesday, May 6th, 2014

por_Scott_Laura_AAuthor: Laura A. Scott (bio)

Phone: 812.452.3557

Email: [email protected]

At a recent seminar focused on compliance by financial institutions, regulators from many federal and state agencies, and industry leaders, all stressed the importance of having a culture of compliance at your financial institution.  This means not just having compliance policies and procedures and putting them up on the shelf, but actually implementing those policies and procedures.  (more…)

Do Your Disclosures Hold Up?

Tuesday, April 22nd, 2014

por_Scott_Laura_AAuthor: Laura A. Scott (bio)

Phone: 812.452.3557

Email: [email protected]

The Federal Trade Commission (“FTC”) is tasked with making sure that claims from business and financial institutions about products (including financing services products) are not misleading.  At a recent talk by representatives of the FTC and industry leaders, the point was stressed that the issue isn’t necessarily if your disclosures are readable, but whether or not they are actually read by consumers.  (more…)

What Keeps the Regulators Up at Night?

Thursday, April 10th, 2014

por_Scott_Laura_AAuthor: Laura A. Scott (bio)

Phone: 812.452.3557

Email: [email protected]

Do you ever wonder what keeps the regulatory agencies for the financial services industry up at night?  In a word, the answer is “fraud.”  A recent panel discussion featuring regulators from the FTC, FDIC, Department of Treasury, and Department of Justice discussed their concern with fraud that can sneak into the financial services industry.  In particular, regulators are concerned with addressing fraud associated with the use of prepaid cards. (more…)

Regulatory Focus on Bank Secrecy Act: Is Your Bank Ready?

Wednesday, February 19th, 2014

por_Scott_Laura_AAuthor: Laura A. Scott (bio)

Phone: 812.452.3557

Email: [email protected]

At a recent panel discussion by federal regulators including representatives from the Federal Reserve, Treasury Department, FTC, FDIC and the Department of Justice, the regulators were asked what one of their main focuses would be in the coming year with respect to enforcement activities against financial institutions.  The response was almost unanimous– enforcement of the Bank Secrecy Act (“BSA”).  (more…)

Top Loan Workout Tips for Bankers

Tuesday, February 11th, 2014

por_Scott_Laura_AAuthor: Laura A. Scott (bio)

Phone: 812.452.3557

Email: [email protected]

Navigating the troubled waters of the loan workout can be dangerous and frustrating territory for bankers.  However, there are a few tips that bankers should keep in mind when dealing with a loan workout to avoid getting more than what the banker bargained for.  (more…)

Long-term Participation Agreements With Kentucky Banks Might Subject You To Kentucky Courts’ Personal Jurisdiction

Thursday, December 5th, 2013

por_Scott_Laura_AAuthor: Laura A. Scott (bio)

Phone: 812.452.3557

Email: [email protected]

In July, the United States District Court for the Eastern District of Kentucky decided a case making it harder to avoid the personal jurisdiction of Kentucky courts when entering into long-term bank participation agreements. This case involved two banks in a participation agreement where a Kentucky bank paid a West Virginia bank to purchase an interest in several loans. In return, the West Virginia bank agreed to pay the Kentucky bank a proportionate amount of the interest for the life of the loans. When the banks had a disagreement, the Kentucky bank sued the West Virginia bank. The West Virginia bank raised the issue of whether the West Virginia bank had sufficient connections to Kentucky to be sued in Kentucky. (more…)

Fear and Loathing of Subpoenas

Tuesday, October 15th, 2013

A subpoena is a court order that requires the recipient to take some action. If you receive a subpoena, you should fight the urge to run screaming from your mailbox or pretend like you did not receive it. There are two kinds of subpoenas.  One kind of subpoena requires the recipient to show up in court and provide testimony. The other kind of subpoena requires the recipient to produce documents by a certain date. If you receive a subpoena, you should first check to see which kind of subpoena it is, so that you can know what kind of response is required. (more…)