Andrew L. Sandler and Margo Tank Quoted in Credit Union Times Article, "Dwolla Action Opens New Territory for CFPB: Attorneys"
March 3, 2016
Andrew L. Sandler and Margo Tank were quoted in Roy Urrico's Credit Union Times article, "Dwolla Action Opens New Territory for CFPB: Attorneys," on March 3, 2016.
Legal experts said they believe the CFPB’s action against online payment provider Dwolla – its first action related to data security – could lead to considerable ramifications going forward. The CFPB targeted Dwolla Wednesday for deceiving consumers about its data security practices and the safety of its online payment system.
The bureau ordered the Des Moines, Iowa-based Dwolla, an agent of the $2.7 billion, Waterloo, Iowa-based Veridian Credit Union and the Houston-based Compass Bank, to pay a $100,000 penalty and fix its security practices.
“The CFPB’s action against Dwolla is significant in that it marks the bureau’s first foray into an area that up until now was the domain of the Federal Trade Commission and sets up the enforcement stage in this area for the bureau in 2016,” Andrew L. Sandler, chairman and executive partner for the Santa Monica, Calif.-based BuckleySandler, said.
Margo Tank, a partner at BuckleySandler, warned, “The CFPB’s opening salvo in this area creates concern for digital payment companies and other e-commerce providers. It also establishes an onerous level of oversight as the consent order requires a twice-annual risk assessment and annual audit, along with board approval of the company’s data security program, policies and procedures. Clearly, this action should put data security even higher on companies’ priority lists if it is not there already.”