January 30, 2023


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Troutman Pepper Weekly Customer Economic Services COVID-19 E-newsletter – Might 2022 # 4 | Troutman Pepper

5 min read

Like most industries right now, Consumer Finance Solutions firms continue on to be noticeably impacted by COVID-19. To assistance you keep abreast of related things to do, underneath obtain a breakdown of some of the largest legislative and regulatory activities at the federal and condition degrees to influence the Customer Finance Companies marketplace this past week:

Federal Pursuits

Point out Functions

Privacy and Cybersecurity Actions

Federal Pursuits:

  • On Might 19, the Purchaser Economic Protection Bureau (CFPB) issued an interpretive rule that describes states’ authorities to pursue lawbreaking firms and people today that violate the provisions of federal purchaser monetary safety legislation. For the reason that of the very important purpose states participate in in protecting consumers, the Shopper Financial Protection Act grants their consumer defense enforcers the authority to safeguard their citizens and in any other case go after lawbreakers. For a lot more information and facts, simply click below.

  • On May 19, the Division of Commerce’s International Trade Administration issued a ask for for remark (RFC), looking for general public enter on the improvement of a framework for driving economic competitiveness and leadership in, and leveraging of, electronic asset technologies as component of reinforcing U.S. leadership in the world wide fiscal system. In its RFC, Commerce invites enter on any matter suitable to its advancement of the framework, and it seeks feedback on 17 specific inquiries about the international competitiveness of U.S. digital asset enterprises, comparisons to regular economic products and services and money inclusion things to consider, as perfectly as technological criteria. For much more facts, click on below.

  • On Could 17, the CFPB released an enforcement memorandum that addresses prohibited practices on claims about Federal Deposit Coverage Corporation (FDIC) insurance. Specially, firms cannot misuse the FDIC’s identify or emblem or make deceptive representations about deposit insurance policies. The difficulty has taken on renewed worth with the emergence of fiscal systems — these kinds of as crypto assets, including stablecoins — and the pitfalls posed to buyers if they are lured to these or other financial products and solutions or solutions as a result of misrepresentations or untrue promotion. For a lot more facts, click right here.

  • On Might 17, Securities and Trade Fee Chair Gary Gensler reviewed the have to have for bigger trader security of crypto markets, in specific the chance that crypto buying and selling and lending platforms may be selling unregistered securities. “As it relates to crypto tokens, if investors are putting money behind a team of business people elevating money from the public in anticipation of revenue, that’s the hallmark of an financial investment contract or a security beneath our jurisdiction,” he explained. In testimony that exact same working day to Congress, Gensler stated that the “highly volatile and speculative crypto market has mushroomed.”

  • On May perhaps 16, the CFPB printed a report, examining house loan servicers’ responses to the COVID-19 pandemic. The details, collected across 16 significant servicers from Might as a result of December 2021, reveals householders go on to deal with considerable pitfalls and troubles connected to doing work with their home loan servicers. This problem is specially acute for people debtors having difficulties to make their mortgage loan payments after exiting COVID-19 hardship forbearances. For a lot more information, click on right here.

  • On May well 16, the CFPB declared that it will start a new initiative to supply steering to other organizations with client money safety duties on how the CFPB intends to implement federal shopper financial regulation. 12 U.S.C § 5481(14). The CFPB will use Client Money Safety Circulars, described as “general statements of plan,” under the Administrative Course of action Act. These circulars will deliver qualifications information and facts about applicable legislation articulate criteria suitable to the CFPB’s work out of its authorities and, in the interest of retaining regularity, recommend other get-togethers with authority to enforce federal buyer fiscal law. Circulars will be launched publicly. For more data, click on below.

Point out Functions:

  • On May perhaps 18, the Minnesota legislature passed an amended model of SF 2922. SF 2922 has a do the job-from-dwelling provision that would permit collection agency staff to keep on functioning remotely. Must the bill be signed into legislation, the operate-from-house provision would choose effect on June 1. For much more data, click below.

  • On May well 17, North Carolina Lawyer Standard Josh Stein declared his office environment experienced secured a short-term restraining purchase in opposition to a tax firm for “allegedly unlawfully deceiving North Carolinians who were being attempting to use for COVID-19-relevant financial and housing assistance.” According to the press launch, the business “advertised that it could aid North Carolinians apply for pandemic-relevant money guidance, but it charged them for application assistance products and services even while people today could implement for both software for absolutely free.” Attorney Typical Stein said, “These govt systems have been made to assist people in dire need. Preventing them from getting the assist they essential, whilst also having their dollars underneath false pretenses, is unconscionable. And it’s towards the regulation.” For a lot more details, click here.

Privacy and Cybersecurity Actions:

  • On Could 19, the Federal Trade Fee (FTC) adopted a new policy statement, saying a crackdown on education engineering firms that surveil youngsters when they go online to learn. The statement helps make distinct that ed tech vendors need to comply with the Children’s On the web Privacy Defense Act (COPPA). COPPA imposes details minimization demands, use prohibitions, retention limitations, and protection necessities. Organizations that are unsuccessful to comply with COPPA could encounter possible civil penalties and new demands and limitations on their enterprise techniques. For the full statement, simply click right here.

  • On Might 17, the Point out and Regional Governing administration Cybersecurity Act of 2021 (S.2520) handed the Property and now awaits President Biden’s signature. S.2520 would update the Home Homeland Stability Act and immediate the Department of Homeland Stability to boost information sharing and coordination with condition, regional, and tribal governments. It would really encourage federal cybersecurity industry experts to share information regarding cybersecurity threats, vulnerabilities, and breaches, as well as means to avoid and recover from cyberattacks. The bill would also construct on earlier attempts by the Multi-State Details Sharing and Evaluation Centre (MS-ISAC) to stop, secure, and respond to long run cybersecurity incidents. For the bill, click on here.

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