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...
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...
Nebraska passed L. B. 363 in March of 2021, effective March 18, 2021, to expand the scope of several key consumer finance statutes to require licensing of entities that acquire any servicing rights or other forms of participation, among other new licensing triggers. Below is a summary of the key provisions. Read More
DC has released the bill text for its debt collection bill and the enrolled bill includes a retroactive effective date of July 24, 2021. The effective date was changed by technical amendment to eliminate the gap between the collection bill’s provisions and DC’s coronavirus protections that were repealed as of July 24th. Read More
On August 5th, the California Department of Financial Protection and Innovation (“DFPI”) entered into a consent order with a fintech that provides software to schools and other institutions to enable the institutions to issue income share agreements (“ISAs”). The fintech also services the ISAs for the institutions. Under the consent order, the DFPI granted conditional approval for the fintech to obtain a student loan servicer license under the California Student Loan Servicing Act (“SLSA”). The fintech had voluntarily applied for the servicer license in April. Read More
DC has amended its collections bill and the effective date has been delayed until October 1, 2021. The mayor has not yet signed the bill but is expected to sign the amended bill. Read More
After the CFPB filed a motion in pending litigation to lift the stay of the compliance date for the payment provisions of the CFPB Payday Lending Rule, the federal district court issued an order requesting additional briefing from both parties concerning what would be the appropriate compliance date if the court were to rule in favor of the CFPB on the summary judgment motions. READ MORE
On June 30, 2021 President Biden signed the Joint Resolution of Congress disapproving the rule adopted by the Office of the Comptroller of Currency relating to “National Banks and Federal Savings Associations as Lenders” (85 Fed. Reg. 68742 (October 30, 2020)) (the “True Lender Rule”), and providing that such rule shall have no force or effect. Read More