Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter – June 2022 #2 | Troutman pepper

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Like most industries today, consumer credit services businesses continue to be significantly impacted by COVID-19. To help keep you up to date with relevant activity, below is a breakdown of some of the biggest federal and state legislative and regulatory events impacting the consumer credit services industry during the week. last :

Federal activities

State activities

Privacy and cybersecurity activities

Federal activities:

  • On June 9, the Consumer Financial Protection Bureau (CFPB) launched an investigation into financial practices and products that may leave employees in debt to their employers. In the request for information, the CFPB seeks data on these emerging financial practices and products called employer loans, as well as the experiences of workers. For more information, click here.
  • On June 8, the Office of the Comptroller of the Currency (OCC) proposed to add cannabis and digital currency-related activities to the list of business data it collects from banks to better identify risky areas in the world. the financial system. For more information, click here.
  • On June 7, Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced the Responsible Financial Innovation Act, a bill eagerly awaited by everyone in the cryptocurrency industry. For more information, click here.
  • On June 7, the Federal Reserve announced that it would release a second tool to help community financial institutions implement Current Expected Credit Losses (CECL). Known as the Expected Loss Estimator, the spreadsheet-based tool uses loan-level data and a financial institution’s management assumptions to help community financial institutions calculate their CECL allocations. For more information, click here.
  • On June 3, the Federal Trade Commission (FTC) issued a request for information that could form the basis of a major update to its digital advertising guidelines. The FTC’s most recent digital advertising guide—2013 “.com Disclosures – How to Make Effective Disclosures in Digital Advertising” (.com Disclosures Guide)—provides guidance on how to make “clear and visible” disclosures in digital advertising. online advertisements, while offering examples of problematic advertisements with explanations on how to make clear and visible disclosures. The .com Disclosure Guide has been hugely influential in setting the bar for compliant Internet advertising. For more information, click here.

State activities:

  • On June 9, the California Office of Administrative Law approved commercial finance disclosure regulations, which require consumer-type disclosures for certain commercial finance products, such as small business loans and cash advances. tradespeople. Once this final step is completed, these Department of Financial Protection and Innovation regulations will go into effect on December 9, completing a process that began with the adoption of SB 1235 in 2018. For more information, click on here.
  • On June 8, Colorado Governor Jared Polis signed a bill prohibiting healthcare facilities from pursuing debt collection activities against people with unpaid medical bills unless those facilities meet federal guidelines. on price transparency. For more information, click here.
  • On June 8, the New York Department of Financial Services released new compliance requirements for issuers of US dollar-backed stablecoins. For more information, click here.
  • On June 2, the Washington, DC City Council unanimously approved the “Consumer Protection from Unfair Debt Collection Practices Amendment Act of 2022.” The bill clarifies that a debt collector or debt buyer can only send text messages, emails or private messages on social media after sending the required written notice to consumers. It also clarifies that a debt collector or debt buyer may send an SMS, email or private message within a seven-day period for the purpose of obtaining consumer consent to communicate via a or more of these methods. For more information, click here.

Privacy and cybersecurity activities:

  • The Consumer Protection and Commerce Subcommittee of the U.S. House Committee on Energy and Commerce will hold a hearing on June 14 to discuss U.S. data protection and privacy law. Subcommittee members, U.S. Representatives Frank Pallone (D-NJ) and Cathy McMorris Rodgers (R-WA), co-wrote the draft. To read the announcement, click on here.
  • On June 8, the California Privacy Agency’s Board of Directors voted unanimously to authorize Executive Director Ashkan Soltani to begin the rulemaking process for the California Privacy Rights Act. The agency released draft regulations ahead of the June 8 meeting, while Director Soltani had previously said the agency would miss the July 1 deadline, with regulations expected to be completed by the third or third. fourth trimester. To learn more, click here.
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