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, especially the ever-changing rules and regulations around evictions and foreclosures. We are following these updates closely and have assembled an interactive tracking tool containing 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 fundraising services industry. consumption last week:
Privacy and cybersecurity activities
- On July 9, the US Department of Education announced the approval of more than 1,800 âborrower’s defenseâ (borrower’s defense) applications for borrowers who attended three institutions: Westwood College , Marinello Schools of Beauty and the Court Reporting Institute. These borrowers will receive a 100% loan discharge, resulting in approximately $ 55.6 million in relief. That brings the Biden administration’s total borrower defense-based loan cancellation to more than $ 1.5 billion for nearly 92,000 borrowers. For more information, click here.
- On July 9, President Joe Biden issued an executive order, requiring federal regulators to take a closer look at mergers and acquisitions in the banking industry. Specifically, the ordinance “encourages” federal regulators “responsible for the banking industry (the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency) to update guidelines on bank mergers to provide a more rigorous merger review “. Also, the order “[e]nencourages the Consumer Financial Protection Bureau (CFPB) to issue rules allowing customers to download their bank details and take them with them. For more information, click here.
- On June 30, the CFPB published a blog post on Consumer Credit Trade Reporting Trends. New research examines the relationship and trends of trade and consumer credit for small businesses, with an in-depth look at the frequency and types of trade credit commonly found on consumer credit reports and practices and strategies. often inconsistent statement, which can have significant consequences for borrowers. For more information, click here.
- On June 28, the Financial Crimes Enforcement Network (FinCEN) released a âReport to Congress – Assessment of No-Action Letters Pursuant to Section 6305 of the Anti-Money Laundering Act 2020â (Assessment). The evaluation concludes that FinCEN should undertake regulation to establish a no-action letter process to complement existing forms of regulatory guidance and relief that may currently be requested from FinCEN. For more information, click here.
- On July 14, the Colorado Attorney General (AG) will hold a virtual meeting to discuss the new draft student loan service and collection rules. At the meeting, the GA’s office “will seek comments on fees, timing of documentary and information requirements, and the alternative registration process for rule making under the Act. on Colorado Student Loan Equity to Stakeholders â. For more information, click on here.
- On July 8, New York Attorney General Letitia James announced the voluntary dismissal of a lawsuit challenging the Office of the Comptroller of the Currency’s real lender rule after President Biden enacted a congressional resolution repealing the rule of the previous administration. According to the press release, “[t] The repealed rule would have preempted the application of state usury laws to loans financed by, or by designating as a lender, a national bank regulated by the OCC, even where the national banks did not hold any substantial financial interest in the loan. the loans. Â»For more information, click on here.
- On July 5, a new Massachusetts law came into effect requiring licenses for any business handling student loans in the state. The law also requires the state AG to hire a student loan ombudsperson, who would resolve student complaints, monitor student loan services, and notify borrowers. For more information, click on here.
- On June 30, Georgia Governor Brian Kemp issued an executive order upholding regulatory suspensions for COVID-19. Among the provisions of the ordinance, the requirement that notarial acts occur in the physical presence of a notary, as well as the requirement that certain other legal documents be signed with a physically present witness remain suspended. For more information, click on here.
Privacy and cybersecurity activities:
- July 7 The New York Times reported that amid the alarming spread of the Delta variant of COVID-19, New York City is “reducing its efforts to monitor the spread of the coronavirus.” Top doctors and researchers suggest that efforts to monitor the spread of the virus are waning due to the increased focus on vaccination efforts. They warn, however, that cities and states should not abandon surveillance tools as vaccination rates are still not ideal in some places. Despite the easing of COVID-19 surveillance, New York City noted it had more tools, such as “home testing of people identified as close contacts of people who tested positive.” To learn more about contact tracing, please click here. To learn more about how New York City handles the Delta variant, click here.
- July 7 The New York Times reported that wearable fitness trackers, such as Fitbit and Apple Watch, “could help detect early signs of COVID-19 symptoms.” Extensive research took place during the pandemic into the fitness tracker’s ability not only to detect COVID-19, but also to track patient recovery to better understand the long-term effects of COVID-19. To find out more, click here. While study participants voluntarily provided access to health information, many people fear that their data could be accessed without their consent through such fitness trackers. In 2019, for example, when Google acquired Fitbit, many Fitbit users chose to dispose of their devices out of concern that â[Google] may soon have access to their most intimate health information. Â»For more information, click here.