Troutman Pepper Consumer Financial Services COVID-19 Weekly Bulletin – August 2021 | Man’s pepper with trout

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[co-author: Jennifer Ciccarelli]

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 :

Federal activities

State activities

Privacy and cybersecurity activities

Federal activities:

  • On July 30, the United States Department of Agriculture, the United States Department of Housing and Urban Development, the United States Department of Veterans Affairs and the Federal Housing Finance Agency extended their moratorium on foreclosure-related evictions until September 30. The Centers for Disease Control and Prevention’s evictions moratorium expired on July 31, after the Biden administration announced it would allow the moratorium on evictions to expire and asked Congress to allow an extension. For more information, click here and here.
  • On July 30, the Federal Reserve Board announced that it was seeking individuals with a diverse set of perspectives of insurance experts in the fields of life, damage and reinsurance to serve on its Insurance Policy Advisory Committee. (IPAC). Established by the Law on Economic Growth, Regulatory Streamlining and Consumer Protection, IPAC consists of 21 members, who serve staggered three-year terms and bring professional experience in insurance accounting, actuarial science, in academia, insurance regulation and policyholder advocacy. For more information, click here.
  • On July 30, the Consumer Financial Protection Bureau (CFPB) announced that two final rules issued under the Fair Debt Collection Practices Act will come into effect as scheduled on November 30. The CFPB published a proposal in April 2021 which, if finalized, would have extended the dates of entry into force of Regulation F until January 29, 2022. The CFPB has now determined that such an extension is not necessary. Following this announcement, the CFPB will publish a formal notice in the Federal Register withdraw the April 2021 proposal. For more information, click on here.
  • On July 29, the CFPB and the Federal Housing Finance Agency released updated data on the level of public lending collected as part of the National Mortgage Survey. The data provides insight into borrowers’ experiences with obtaining residential mortgages. For more information, click here.
  • On July 29, the Federal Trade Commission (FTC) announced it would send refund checks, totaling nearly $ 2.3 million, to people who have lost money to debt relief programs. by credit card. For more information, click here.
  • On July 28, the CFPB released an online tool to help tenants and landlords affected by the pandemic easily find and apply for assistance with paying rent, utilities and other expenses. The Rental Assistance Finder connects tenants and landlords with state and local programs distributing billions of dollars in federal aid nationwide to help tenants stay housed during the pandemic. For more information, click here.
  • On July 27, the CFPB released a briefing note, showing that consumer demands for auto loans, new mortgages and revolving credit cards had mostly returned to pre-pandemic levels by now. May 2021. remain behind in relation to subprime and deep subprime borrowers for all types of credit. For borrowers with super prime credit scores, demands are down for all types of credit except mortgages. For more information, click here.
  • On July 23, the CFPB issued a consumer advisory “Know your rights under the Servicemember Civil Relief Act (SCRA)”. The CFPB amended the SCRA to make it easier for military and veterans to terminate residential and auto leases without penalty. The SCRA also advises military and veterans to exercise due diligence before relinquishing their SCRA rights. For more information, click here.

State activities:

  • On August 1, New York Governor Andrew Cuomo announced the CUNY Return Program, a plan to eliminate up to $ 125 million in unpaid debt for at least 50,000 students who attended CUNY and suffered financial hardship during the COVID-19 pandemic. Additionally, students who did not accumulate a balance of tuition fees and unpaid fees during the period, but experienced financial hardship due to the pandemic, will receive relief in the form of emergency grants. for improved students. For more information, click here.
  • On July 29, Virginia Attorney General Mark Herring announced that he had joined a multi-state amicus memory, defending the rights of federal student loan borrowers. According to the press release, the brief challenges “actions taken by the Trump administration’s Education Department that have repealed and illegally replaced federal ‘defense of borrowers’ regulations. Attorney General Herring said, “The current Trump-era borrower defense rule does nothing to protect Virginia student loan borrowers and leaves them with no options if they are defrauded by a for-profit college. ” For more information, click here.
  • On July 26, Georgia Attorney General Chris Carr announced Georgia’s top consumer complaints for 2020. The report, available here, listed as his top three complaints: (1) debt issues, (2) used car sales, and (3) price gouging / public health emergency. For more information, click here.
  • On July 23, Washington, DC’s debt collection legislation was forwarded to Mayor Bowser for his signature. The legislation – emergency and temporary laws protecting consumers from unfair debt collection practices – would require, among other obligations, (1) that debt collectors provide detailed statements and account numbers for debts owed; (2) limit the information that can be provided about a consumer’s employers or family members; (3) increase statutory damages to $ 4,000 per injured party; and (4) limit collection officers to three calls in a seven day period. For more information, click here.
  • On July 15, the Connecticut Department of Banking fined a collection agency after discovering it had operated without proper authorization for about seven years. The collection agency has filed an application with the state through the nationwide multi-state licensing system and registry to act as a consumer collection agency in Connecticut. As part of the application process, the state conducted an investigation into the activities of the agency, which led to the conclusion of the Banking Department. For more information, click here.

Privacy and cybersecurity activities:

  • On July 28, the Cybersecurity and Infrastructure Security Agency (CISA) published an advisory highlighting the main vulnerabilities and common exposures (CVEs) that threaten actors in 2021. The main conclusions of the CISA, she shared, were that “four of the most targeted vulnerabilities in 2020 involved remote working, VPNs or cloud-based technologies. The CISA says many of the “VPN gateway devices remained unpatched in 2020, with the growth of remote working options due to the COVID-19 pandemic questioning the ability of organizations to conduct rigorous management of fixes ”. To read the full notice, click here.
  • On July 27, the FTC held ConfidentialityCon 2021 as an online event this year due to the pandemic. Topics covered algorithms, advertising, Internet of Things (IoT), and privacy issues related to COVID-19. For more information, click here.
  • July 26, The New York Times reported that the pandemic has dramatically increased the use of Quick Response Codes (QRs) in full-service U.S. restaurants, increasing the ability of restaurants to track individuals. The report describes that this tracking has “enabled some restaurants to create a database of order history and contact information for their customers.” For those who want to know more, click on here.


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