On June 26, 2023, Florida Governor Ron DeSantis vetoed HB 1267, which would have amended the Consumer Finance Act to allow licensed lenders to charge a greater rate of interest on consumer loans, among other changes. See our ALERT of May 26, 2023. In his veto transmittal letter, Governor DeSantis stated that while the bill included provisions modernizing the licensing process and increasing transparency requirements, the increase in the interest rate for loans of $25,000 or less caused him concern, as he believes the increase in rates “may result in additional consumer indebtedness and could exacerbate the pinch already being felt due to federal government-induced inflation.” In vetoing the bill, the Governor leaves the old tiered rate caps in place. Read More
Month: June 2023
BANKING AGENCIES RELEASE INTERAGENCY GUIDANCE ON THIRDPARTY RELATIONSHIPS: RISK MANAGEMENT
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency issued guidance on managing risks associated with third-party relationships on June 6, 2023. The new guidance replaces prior guidance by the banking agencies on thirdparty relationships identified in the release. The agencies describe the guidance as a broad, principles-based approach in response to comments on the prior draft guidance released in July of 2021 requesting that the guidance address specific topics or types of relationships. Read More
ADDITIONAL STATES ENACT CONSUMER DATA PRIVACY LAWS
Indiana, Montana and Tennessee joined six other states in enacting consumer data privacy laws. The other states with consumer data privacy laws are California (effective Jan. 1, 2020), Virginia (effective Jan. 1, 2023), Colorado (effective July 1, 2023), Connecticut (effective July 1, 2023), Utah (effective Dec. 31, 2023) and Iowa (effective Jan. 1, 2025). With the exception of the California consumer data privacy law, all the recently enacted privacy data laws are very similar. Importantly, all the state consumer date privacy laws except California include an exemption for financial institutions and data subject to the privacy provisions of the Gramm-Leach-Bliley Act. The laws give a consumer certain rights over the data collected about the consumer by businesses, including the right to know the consumer data being collected and restrict its use. Additionally, the laws require specific provisions in contracts between businesses that collect consumer data and their service providers. The Montana law will take effect October 1, 2024. The Tennessee law will take effect July 1, 2025. The Indiana law will take effect January 1, 2026. Read More