Like most industries today, consumer finance service companies are significantly affected by the novel coronavirus (COVID-19). Troutman Pepper has developed a COVID-19 Resource Center to guide clients through this unprecedented global health challenge. We regularly update this site with COVID-19 news and developments, recommendations from leading healthcare organizations, and tools businesses can use for free.
Our banking and loan clients are also facing new challenges affecting their industry as a result of COVID-19, particularly the ever-changing rules and regulations regarding evictions and foreclosures. We are following these updates closely and have assembled an interactive tracking tool with state orders and guidance material regarding residential lockdowns and eviction moratoria. You can access this interactive tool at https://covid19.trutman.com/.
To help you stay on top of relevant activities, below is a breakdown of some of the biggest COVID-19 related events at the federal and state levels that have impacted the consumer finance services industry. last week :
Privacy and cybersecurity activities
- On September 1, the US Treasury Department’s Community Development Financial Institutions Fund announced $ 5 billion in new market tax credits that it hopes will spur investment and economic growth in urban communities. and low-income rural areas of the country. A total of 100 community development entities received tax credits granted in calendar year 2020 from the New Business Tax Credit program. For more information, click here.
- On September 1, the Consumer Financial Protection Bureau (CFPB) proposed a new rule designed to help small businesses access credit by increasing transparency in the lending market. If finalized, this rule would require lenders to disclose information about their small business loans. Under the proposal, lenders are required to report the amount and type of small business credit applied for and granted, demographic information about applicants for small business credit, and key elements of the price of the credit offered. For more information, click here.
- On September 3, New York Attorney General Letitia James announced that her office was assessing ways to review the collection of unpaid student loans, especially those taken out by people attending schools at State University of New York (SUNY). Current regulations allow the AG to bring an action in the Supreme Court of the State of Albany, New York, regardless of where the person with the outstanding student loan resides. As a result, many of the 16,000 SUNY students brought to justice over the past eight years have faced default judgments because they were unable to appear in court. For more information, click here.
- On September 2, the Nebraska Secretary of State announced that the National Multi-State Licensing System (NMLS) is now receiving new application and bridging filings for licenses, including collection agencies and electronic bonds. . For more information, click here.
- On September 1, Washington, DC Mayor Muriel Bowser enacted a bill that changes debt collection procedures, while the original bill’s sponsors work on permanent changes. Under the new law, collectors would be limited to making three phone calls in a seven-day period, while also addressing email and SMS communications. The three phone call limit includes all phone numbers and accounts that the creditor or collector has for the consumer, but does not include consumer calls made to a collector or calls from a collector in response to the request. of a consumer for a return call. For more information, click here.
- On August 27, the Maryland Court of Appeals overturned a lower court ruling by issuing a ruling interpreting a state debt collection law to allow plaintiffs to charge collectors with violating l ‘one of the provisions of the law in cases where the collector attempts to recover amounts that “the debt collector, to his knowledge, is not entitled to recover. For more information, click here.
Privacy and cybersecurity activities:
- On August 31, the CFPB warned consumers that scammers take advantage of individuals during tough times, and the COVID-19 pandemic is no exception. The CFPB also provided people with a series of questions to determine if an emergency rental assistance program is a scam or legitimate. In addition, the CFPB reminds individuals that an “agency of the federal government will not ask [them] for the processing of personal or financial information [their] request for rent assistance. For those who wish to read the full announcement, click on here.
- At the end of last month, Wired reported that hackers can increase the doses of drugs with certain types of infusion pumps. An infusion pump automates the delivery of life-saving drugs to patients in hospitals, including those being treated for complications from COVID-19. McAfee Enterprise discovered and shared its results, describing how they learned that “an attacker with access to a healthcare facility network could take control of the [infusion pumps] by exploiting a common connectivity vulnerability. From there, they could exploit four more loopholes in order to send the Medication Doubling Command, “which could result in serious injury or death.