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Legal

KBA Legal department works diligently to keep you advised of legal challenges and rulings that impact our industry and to represent the industry in litigation, when appropriate, to ensure that court considers the impact of certain issues on the industry as a whole.

If you have questions, please contact Debra Stamper at 502-582-2453 or by email at dstamper@kybanks.com.



News

ATM Lawsuits

February 13, 2012

Please let me know if you have been involved in an ATM disclosure lawsuit filed by Nancy Kinder or others.

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Bank of America Subsidiary Reversing or Refunding Fees to Resolve FTC Allegations

February 10, 2012

A mortgage servicing subsidiary of Bank of America Corp. agreed to settle Federal Trade Commission charges that it illegally assessed more than $36 million worth of fees against struggling homeowners, in violation of an earlier settlement with the FTC.

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FTC Stops Unauthorized Debits of Deposits

January 06, 2012

A payment processor and two of its principals are now banned from using a new payment method to process electronic payments under a settlement with the Federal Trade Commission, which resolves charges that they debited consumers' bank accounts without their consent.

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Retailers Sue Over Durbin Amendment

November 23, 2011

The National Retail Federation has filed suit against the Federal Reserve Board. The claim is that the debit interchange fee cap is not reasonably related to the cost of the transaction.

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Independent Foreclosure Review Underway

November 03, 2011

The Office of the Comptroller of the Currency announced that the independent foreclosure review required under the agency’s enforcement actions taken in April 2011 has begun.

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Overdraft Lawsuits

August 05, 2011

Bank Overdraft website.

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High to Low Processing Challenged

August 05, 2011

A lawsuit was recently filed against one of our member banks challenging its method of charging overdraft fees on debit transactions.

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Charitable Organization Accounts

August 02, 2011

As I advised last week, the Department of Revenue amended their form 62A863, "Financial Institutions Local Summary Report," on 08/2010 to require an attached schedule of "Deposits of religious and charitable institutions."

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Lawsuits on 365/360 calculation method

August 02, 2011

Some banks still use the 365/360 method of interest calculation. There are a growing number of cases successfully challenging this method of calculation, although there are no published opinions addressing this issue in Kentucky.

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ATM Lawsuits--New Wave

August 02, 2011

The trend has made it to Kentucky...a plaintiff's attorney--Geoffrey Bestor of DC--using a named plaintiff--Nancy Kinder of Michigan--seeking a class action against at least four of our members for violations of EFTA and the requirement that certain disclosures be given on/at the ATM.

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