Troutman Pepper Consumer Financial Services COVID-19 Weekly Bulletin – September 2021 # 2 | Man’s pepper with trout
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 9, the Federal Reserve Board published an article describing the landscape of partnerships between community banks and fintech companies. The document captures information gathered during a broad outreach with community banks, fintechs and other stakeholders. Outreach involved discussions focused on strategic and tactical decisions that support effective partnerships. For more information, click here.
- On September 9, the Consumer Financial Protection Bureau (CFPB) released a report on signed agreements between credit card issuers and colleges, or college affiliates, finding that the college credit card market has continued. its general downward trend in 2020. The report also finds that agreements with alumni associations continued to constitute the largest part of this market, as defined by the number of agreements, number of accounts and the amounts of payments made by issuers to their counterparties. For more information, click here.
- On September 8, the Office of the Comptroller of the Currency (OCC) proposed rescinding some updated fair lending rules as the agency begins work on drafting new rules. Under the proposal, the OCC would revert to previous regulations of 1995 for the Community Reinvestment Act (CRA), a 1977 fair loan act. For more information, click here.
- On September 8, the Federal Trade Commission (FTC) approved final revisions that would align several rules implementing parts of the Fair Credit Reporting Act in compliance with the Dodd-Frank Act on Wall Street Reform and Consumer Protection. . For more information, click here.
- On September 8, the CFPB published online the new Model Validation Notice (MVN) formats required under Regulation F. The newly available alternative MVN formats are expected to facilitate the integration of MVN into existing systems and the in form and other modifications authorized by the effective date of November 30 for the Reg. F. For more information, click here.
- On September 7, the Federal Reserve, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency announced they would extend the comment period until October 18 on proposed guidance designed to help banking organizations manage risk associated with third-party relationships, including relationships with fintech-focused entities. The proposed guidelines are intended to help banking organizations identify and manage risks associated with third-party relationships and respond to industry comments calling for alignment between agencies with regard to third-party risk management guidelines. For more information, click here.
- On September 7, CFPB took action against an ISA provider for misrepresenting its product and failing to comply with the federal consumer finance law that governs private student loans. . The ISA provider provides the students with money to fund their graduate studies, in the form of ISA, under which the students agree to pay a percentage of their income during a given period or until they reach a payment ceiling. Apparently, the ISA provider falsely stated that ISAs are not loans, failed to provide information required by federal law, and violated a prepayment penalty ban for private education loans. Under the CFPB order, the ISA provider must provide information that complies with federal consumer finance law, eliminate prepayment penalties, and stop misleading borrowers. For more information, click here.
- On September 7, CFPB Acting Director Dave Uejio released a statement after the U.S. District Court for the Western District of Texas upheld the payment provisions of the 2017 CFPB Salary Rule, the title of the vehicle and some high cost installment loans. For more information, click here.
- On September 3, the CFPB issued guidance on student loan management contracts to borrowers responsible for pending federal student loan payments for more than a year and when certain service contracts end. For more information, click here.
- On September 9, the Virginia State Corporation Commission passed regulations implementing laws that protect borrowers by regulating student loan services in Virginia. According to a Virginia attorney general Press release, the legislature passed “Chapter 26 of Title 6.2 of the Virginia Code and tasked the CSC to issue regulations implementing Chapter 26. Chapter 26 protects student borrowers from service providers who, among others, engage in unfair or deceptive conduct, misapply loan payments, or misinform credit reporting agencies. The law also authorizes the attorney general of Virginia to prosecute. For more information, click here.
- On September 10, Texas Attorney General Ken Paxton announced the filing of six lawsuits against school districts allegedly “challenging Governor Abbott’s Executive Order GA-38 regarding mask warrants.” According to the GA, Order GA-38 places the governor in charge of the statewide response to the COVID-19 pandemic. For more information, click here.
- On September 10, Washington, DC Attorney General Karl Racine announced that his office “is partnering with local nonprofits to sponsor three additional STAY DC clinics in person to help residents navigate the application process so they can get help paying their rent and utility bills. , as many have struggled financially during the COVID-19 pandemic. According to the press release, “STAY DC is a financial assistance program for tenants and district housing providers who are seeking support to cover housing and utility expenses and to compensate for lost income. The program aims to help families settle their debts, pay homeowners what is owed to them and ultimately avert a crisis when the district’s moratorium on eviction proceedings expires later this year. For more information, click here.
Privacy and cybersecurity activities:
- On September 10, the FTC issued an advisory reminding individuals that there is still COVID-19 help available through the federal government and likely through state and local governments. While some people may receive benefits automatically, others may need to apply. For those applying for COVID-19 benefits, the FTC reminds individuals that the government will “not ask you to pay anything for financial assistance related to COVID.”[;]“Anyone who requests payment and financial or personal information is at risk of a scam. For those who wish to read the full alert, click on here.
- Earlier in September, a court-appointed special master dealing with discovery disputes related to a lawsuit in which grocery shoppers claim they can’t wear face coverings due to a health problem, recommended that the defendants, if they wish, should “conduct a more in-depth search of all or part of the plaintiffs’ text messages, Facebook accounts and private emails” to acquire a more in-depth digital record. Access to complainants’ Facebook accounts includes access to their personal messages, which involves the privacy of complainants. Grocery store customers argued that the grocery store policy prohibiting shoppers from entering the store without a mask violated their rights under the American’s with Disabilities Act. To read the full notice, click here.