RCK, the check collection product used to resubmit paper checks for collection through the automated clearing house system, was deemed by North Carolina to be a regulated collection agency activity. CrossCheck Inc. responded that RCK was little more than a redeposit function that had never before been considered a collection event. The state disagreed.
The Federal Reserve Board revised its commentary to Regulation Z, which implemented the Truth in Lending Act of 1968. The commentary stated that when payday loans include an agreement with the consumer to defer payment, they fall within the definition of "credit," which meant the fees charged for such loans were subject to "finance charge" limits.
InternetCash Corp. introduced InternetCash cards as an alternative to using credit cards for online purchases. Consumers did not have to provide any identifying information to use them. The cards were sold at brick-and-mortar stores in six states and were accepted by more than 60 online merchants, including DrugEmporium.com, Overstock.com and HouseofBlues.com.
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