Firm News

The Federal Trade Commission issued updated Standards for Safeguarding Customer Information (“Safeguards Rule”) in the wake of significant data security incidents and cyberattacks in the consumer financial services sector. Read More

The California Department of Financial Protection and Innovation (“DFPI”) released its fourth set of modifications to the proposed Commercial Financing Disclosure Regulations in an ongoing comment process. See our prior ALERTS dated Apr. 8, 2021 and October 14, 2021. Read More

On October 8, New York passed S.737A into law, “requiring debt collectors to inform debtors that written communications are available in large print format.” The legislation becomes effective November 7, 2021. Read More

The deadline for all licensees under the California Financing Law or PACE program to transition onto NMLS is December 31, 2021. All licensees not yet on NMLS must establish an account in NMLS and transmit their information to the DFPI through NMLS on or before the December 31, 2021 deadline. Read More

The Nevada Financial Institutions Division (“FID”) announced it would hold an open workshop on draft regulations on Nevada SB 248, the new medical collections statute. The workshop will be held Tuesday, October 26, 2021 from 10 a.m. to 1 p.m. Read More

On October 12, 2021, the California Department of Financial Protection and Innovation released its third set of modifications to the proposed Commercial Financing Disclosure Regulations in an ongoing comment process. See our prior ALERT dated Apr. 8, 2021. Read More

The Department of Justice has entered into a consent order with the New Jersey Higher Education Student Assistance Authority (“HESAA”), the state’s student financial aid agency, to settle alleged of violations the Servicemembers Civil Relief Act (“SCRA”). Read More

The new California Privacy Protection Agency announced it is seeking input for developing regulations to implement Proposition 24, the California Privacy Rights Act of 2020 (“CPRA” a/k/a “CCPA 2.0”). See our ALERT dated Nov. 4, 2020. The Privacy Protection Agency is the enforcement agency created by the CPRA to enforce California privacy laws. Previous regulations were issued in March of 2021 by the California Attorney General under the California Consumer Privacy Act of 2018. See our ALERTS dated March 16, 2021, Oct. 14, 2020 and Dec. 11, 2020. The CPRA and its regulations comprise a general privacy law that applies to businesses generally in addition to the requirements of the Gramm-Leach-Bliley Act applicable to financial institutions. Read More

Acting Superintendent of Financial Services Adrienne A. Harris announced a new proposed regulation implementing the New York Commercial Financing Disclosure Law (“CFDL”) for small businesses commercial financing. The proposed regulation requires companies that offer commercial financing in amounts under $2.5 million to make disclosures somewhat like those required by the federal Truth in Lending Act and Regulation Z. The CFDL mandates certain disclosures for commercial financing is effective January 1, 2022. See our Alert dated Dec. 14, 2020. Read More

The Texas federal district court issued a Final Order granting summary judgement to the Consumer Financial Protection Bureau in a case challenging the validity of the Payment Provisions of the CFPB Payday Loan Rule. The decision means that the Payment Provisions will go into effect, but the court sided with the trade associations and extended the compliance date stay for 286 days after the final judgment. At the time the stay was entered, there were 286 days remaining before the Payment Provisions were required to be implemented by lenders. The court was persuaded that the industry should receive the full benefit of the temporary stay and noted that the delayed compliance date would allow time for appeal. While the decision in favor of the CFPB is disappointing, the delayed compliance date is good news. Read More