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 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 fundraising services industry. consumption last week:
Privacy and cybersecurity activities
- On August 5, the Federal Reserve announced individual capital requirements for all major banks, effective October 1. These capital requirements ensure that the large banks tested will hold around $ 1 trillion in high-quality capital – enough to survive a severe recession and still able to lend to households and businesses. For more information, click here.
- On August 5, the Consumer Financial Protection Bureau released an interpretive rule to help the mortgage industry determine whether to treat June 19, 2021 as a federal holiday or a business day for the purposes of complying with certain mortgage protections. time sensitive borrowers. For more information, click here.
- On August 5, the Department of Education announced that it was extending the moratorium on federal student loan payments until January 31, 2022. For more information, click here.
- On August 3, the Federal Reserve announced that it would extend the comment period for its proposal to govern transfers of funds through the FedNow service of Federal Reserve banks until September 9. The FedNow service is a new 24x7x365 service that will support instant payments in the United States. United States and should be available in 2023. For more information, click on here.
- On August 3, the Centers for Disease Control and Prevention released a new order on the moratorium on evictions, in effect until October 3. The CFPB has updated the âHelp for Tenantsâ web page to include information about the new order and the steps tenants can take to avoid eviction under the order. For more information, click here.
- On July 30, the Small Business Administration (SBA) issued an interim rule on the cancellation of loans under the Paycheck Protection Program (PPP), originally established under the Aid Act, relief and economic security against coronaviruses (CARES law). This interim final rule further streamlines the forgiveness process for PPP loans of $ 150,000 or less by allowing lenders to use a COVID-19 Revenue Reduction Score at the time of forgiveness to document the revenue reduction required for them. second-draw PPP loans, and linking the borrower’s forgiveness process directly to lenders who choose to opt for an alternative method of processing loan forgiveness requests. This interim final rule also extends the loan deferral period for these PPP loans, when the borrower timely files an appeal of an SBA loan review final decision with the SBA Office of Hearings and Appeals. . For more information, click on here.
- On August 5, the California Department of Financial Protection and Innovation announced it had reached an agreement with a company offering alternative student loans to increase oversight of revenue sharing agreements. Income sharing agreements are a type of student loan, where the borrower receives a loan and then pays a percentage of their income after graduation. For more information, click on here.
- On August 3, the Washington, DC city council unanimously approved amendments to Bill 24-348 – the DC Emergency Collection Bill. Among other changes, the amended bill now no longer requires debt collectors to provide debt documents within five days of initial disclosure (these documents are now only required to be provided at the request of the consumer) and removes the award of damages by violation. For more information, click here.
- On August 2, the New Mexico State Supreme Court ordered that the stay of garnishment and enforcement writs be phased out in consumer debt collection cases. From September 1, 2021 until January 31, 2022, the ordinance also passed new rules to help tenants facing foreclosures when the federal moratorium expires. Under the civil procedures established by the rules, a foreclosure creditor can only obtain a judgment against a landlord after certifying that loan modification and âloss mitigationâ negotiations have been attempted with the borrower. Before filing a foreclosure case, the rules require that homeowners receive information about their loan and possible ways to avoid losing their home. Rules and related court forms come into effect for cases filed on or after September 7. For more information, click here and here.
- On July 30, DeKalb County Georgia Superior Judge Asha Jackson signed a new emergency order banning deportations in Dekalb County for an additional 60 days. Justice Jackson made the order, in part, after a cybersecurity attack on a tenant-owner assistance provider prevented tenants from receiving timely federal assistance. For more information, click here.
Privacy and cybersecurity activities:
- On August 4, the Federal Trade Commission (FTC) warned consumers that identity thieves “are targeting millions of people nationwide with phishing scams aimed at stealing personal information, unemployment benefits or the two”. As many continue to battle pandemic-induced unemployment, scammers attempt to trick beneficiaries into clicking malicious links to “make the necessary corrections” to their UI, “verify” personal information in their accounts. requests or “responsive” their benefits. . The FTC reminds consumers that state agencies do not send text messages asking for personal information. If individuals are unsure of certain communications, they should contact their government agency directly. To read the full announcement, click here.
- August 3 was reported that an audit found that Western Australia’s SafeWA COVID-19 contact tracing app showed that the police were using “the registration information for purposes other than [COVID]-19 contact tracing, with six requests made by police despite government messages that the information is only used to support contact tracing. In addition, the audit found that the application contained security vulnerabilities when it was released. For organizations interested in learning more about the privacy concerns of COVID-19 Contact Tracing for App Creators, check out Troutman Pepper’s Law360 article by clicking here.
- August 3, The Washington Post reported on its review of the privacy and security aspects of digital evidence options for immunization options. The report acknowledges that COVID-19 passports may only reveal certain required information, but their use could also raise concerns about access and potential privacy breaches. For those interested in learning more about the privacy implications of vaccine certificates, check out Troutman Pepper’s Law360 article by clicking here.