Like most industries today, consumer credit services businesses are significantly impacted by the novel coronavirus (COVID-19). Troutman Pepper has developed a COVID-19 Resource Center to guide customers through this unprecedented global health challenge. We regularly update this site with COVID-19 news and developments, recommendations from leading health organizations, and tools businesses can use for free.
To help keep you up to date on 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 credit services industry. last week :
Privacy and cybersecurity activities
- On February 4, the Federal Reserve Board named Jerome H. Powell interim chairman, pending Senate confirmation of a second term as chairman of the Board of Governors. For more information, click here.
- On February 2, the Department of Veterans Affairs (VA) released a final rule, detailing how outstanding debts owed to the VA are reported to credit reporting agencies. The new rule, which establishes a minimum threshold for what will be declared, takes effect on March 4. For more information, click on here.
- On Feb. 1, the Federal Trade Commission testified before a Senate subcommittee about the aggressive steps the agency is taking to combat pandemic predators who are taking advantage of the COVID-19 crisis to defraud U.S. consumers. For more information, click here.
- On January 31, the Consumer Financial Protection Bureau released a review of financial issues faced by individuals and families who come into contact with the criminal justice system. For more information, click here.
- On January 28, the Federal Reserve Board (Board) invited the public to comment on proposed guidance to implement a framework for oversight of certain insurance organizations supervised by the Board. The proposed supervisory framework — for holding companies of depository institutions significantly engaged in insurance business — would apply guidelines and allocate supervisory resources based on a company’s risk. Additionally, it would formalize a supervisory rating system for these companies and outline how reviewers work with state insurance regulators. For more information, click here.
- On February 3, the Nevada Division of Financial Institutions issued a transition notice to all Nevada collection agency licensees, stating that “all current collection agency licensees and registrants and manager will be able to begin their required transition to NMLS” on April 1. the notice stated that all licensees must transfer their license to the NMLS by June 30, and any “current license will expire if an application is not submitted by June 30, 2022, with no possibility of reinstatement” . For more information, click here.
- On February 2, New York Attorney General Letitia James issued a press release, reminding New Yorkers of the increased protections against surprise medical bills under the federal No Surprises Act, which took effect on January 1st. According to the release, the No Surprises Act “prohibits hospitals and healthcare providers from charging patients more than their in-network copay or deductible on many unexpected out-of-network bills. Attorney General James said, “New Yorkers should be able to seek necessary medical care without worrying about unforeseen financial hardship, but first they need to know what protections they have. For more information, click here.
- On February 3, California Attorney General Rob Bonta sent a letter to major mortgage servicers urging companies to immediately and fully participate in California’s mortgage relief program. According to the press release, the program “will distribute $1 billion in federal funds from the Homeowners Relief Fund to help eligible California homeowners facing COVID-related hardships catch up on their mortgage payments and stay in their homes. “. The press release further states that “[w]While dozens of mortgage agents already participate in the program, some of California’s largest agents have been slow to implement the procedures necessary to fully comply with program requirements. For more information, click here.
Privacy and cybersecurity activities:
- On February 1, the Indiana State Senate voted unanimously in favor of Senate Bill 358, which seeks to establish a comprehensive data privacy regime. The latest version of this legislation closely mirrors the Virginia Consumer Data Protection Act (CDPA) and would go into effect on January 1, 2025. Unlike previous versions, the bill passed by the Senate does not include a private right of action for consumers. The bill will now go to the Indiana House of Representatives, where it must pass committee and floor votes. This legislation is part of a larger wave of state-level privacy bills, driven in part by privacy concerns related to COVID-19. For more information, click here.
- On February 3, the US Department of Homeland Security (DHS) announced the creation of the Cyber Safety Review Board (CSRB). This initiative was first outlined in President Biden’s May 2021 Executive Order 14028, “Enhancing the Nation’s Cybersecurity.” According to the accompanying statement, “The CSRB will review and assess significant cybersecurity events so that government, industry and the broader security community can better protect our nation’s networks and infrastructure.” Designed as a joint public-private initiative, the CSRB’s recommendations will go directly to the President and the Secretary of Homeland Security. For more information, click here.