Skip to content

ACI 4th Annual Forum on Prepaid Card Compliance

Loeb & Loeb LLP is proud to sponsor American Conference Institute's 4th Annual Forum on PrePaid Card Compliance, where partner Robert M. Andalman will be on a panel titled "Sifting Through New and emerging State Escheat Laws and Identifying Safe Harbors as well as Areas of Concern."  

From the conference website:

Be a part of the premier legal and compliance event for the prepaid card industry. The prepaid card industry is facing unprecedented legal and regulatory challenges at both the state and federal levels. In response to the CARD Act and Dodd-Frank, the Fed has issued sweeping new rules that impact gift cards and FinCEN is engaging in greater oversight of stored value cards. And the potential direct and indirect impact of the Durbin Amendment on prepaid cards cannot be overstated. Further, the CFPB as well as other emerging regulatory initiatives are likely to have major consequences for the prepaid card market. At the state level, the continued evolution of money transmitter statutes requires that market participants keep pace or risk non-compliance and new escheat laws threaten to severely impact the way prepaid cards are sold. Add to these concerns the uncertain status of federal preemption, the continuing difficulties associated with AML compliance, and the increasing challenges of fraud deterrence and it becomes clear that it is more important than ever to ensure that you are in compliance with the myriad state and federal regulations and emerging legislation impacting the prepaid industry.

Selected Agenda

Thursday, June 23, 2011
2:05PM – 3:05PM - Sifting Through New and Emerging State Escheat Laws and Identifying Safe Harbors as Well as Areas of Concern

  • New Jersey’s new escheat law - What it requires
    • Data collection - Potential impact on the prepaid industry, especially retailers
    • Greater exposure to escheat laws - Determining whether to continue selling prepaid cards in New Jersey
    • Likelihood that other states will follow suit with similar legislation
  • Impact on prepaid cards of other new and emerging state abandoned property laws
  • Regulatory trends affecting escheat periods
  • Under what conditions does remaining value escheat to a specific state?
    • Product type
    • Expiration dates
    • Fees
  • Identifying and assessing the escheat safe harbors afforded by some states, such as South Dakota and Utah, for gift cards
  • Should escheat laws apply to products such as reward, incentive, and loyalty cards?

Robert M. Andalman, Loeb & Loeb LLP
David Durant, Blackhawk Network