Banks are subject to a number of complex regulations designed to protect consumers and help ensure economic stability. Non-compliance can trigger potentially costly litigation that may result in penalties and legal damages along with secondary effects such as reduced profitability and lost market position. In the event your bank is named as a defendant, you will need dedicated legal counsel to defend your interests and attempt to reach a mutually agreeable resolution with the agency or individuals who have filed suit.
Count on the commercial litigation practice of Levy Goldenberg LLP. Our Manhattan attorneys can review the allegations of non-compliance that have been made against you and work to resolve the issue in a cost-effective and timely manner. We can also advise your bank as to steps it can take in the future to avoid compliance problems.
Top Compliance Issues Resulting in Litigation
Federal regulators over the past decades have levied historic fines against banks, some of which have reached into the tens of billions of dollars. Some of the most significant federal banking regulations concern:
- Anti-Money Laundering (AML) rules: AML regulations exist to ensure that banks don’t inadvertently become partners to a host of financial crimes. Banks must create and enforce programs that monitor its activities and flag suspicious transactions. Those which have no programs or do not effectively use them to create Suspicious Activity Reports (SARs) may face litigation.
- FInancial stability rules: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created new rules for banks and other financial entities and established the Consumer Financial Protection Bureau (CFPB) to enforce consumer laws. Among other provisions, Dodd-Frank imposes reserve requirements and prevents banks from engaging in certain investment activities.
- Privacy and disclosure rules: Banks are restricted in how they collect, use, and disclose their customers’ information. They must create and enforce safeguards to prevent individuals and entities from gaining unauthorized access to sensitive data.
- Credit card rules: The Credit Card Accountability Responsibility and Disclosure (CARD) Act limits interest rate increases on credit cards and addresses billing, fees, payments, and other matters. Banks must also comply with a number of disclosure requirements in marketing their cards.
How a Manhattan Attorney Can Help
Our firm assists banking organizations in their dealings with state and federal agencies, regulators, bank examiners, and individual plaintiffs. We work both inside and outside the courtroom to represent institutions by seeking cost-effective solutions to their regulatory non-compliance litigation matters. When you retain us, we get to work by:
- Reviewing the allegations that have been made against your banking institution
- Acquiring critical evidence through the discovery process
- Handling all court paperwork in accordance with applicable rules of civil procedure
- Negotiating settlements through mediation and discussions with attorneys representing agencies and other plaintiffs
- Working to dismiss claims that have no legal basis
- Applying our extensive experience with banking regulations to defend your bank in court
We also understand that the best defense is a good offense, one that mitigates the risk of future non-compliance issues and the lawsuits that usually come with them. To that end, our lawyers can review your bank’s existing regulatory systems and identify insufficiencies before they become problems. In turn, we can develop and implement robust compliance programs that meet the stringent demands of state and federal regulators and examiners.
Get Started Today With Levy Goldenberg LLP
Whether you have already been named as a defendant in a lawsuit or you have not recently reviewed your regulatory compliance program, it’s time to work with experienced legal counsel. Reach out to our Manhattan commercial litigation attorneys by completing our contact form or calling us today.