Like most industries today, Consumer Finance Services businesses are significantly impacted by the novel coronavirus (COVID-19). In response, Troutman Pepper has developed a dedicated 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 health organizations, and tools that businesses can use free of charge.
Join us on Tuesday, September 29 as a panel of Troutman Pepper litigators examine recent developments in class action litigation and provide insights on what the future holds. The panel will dive into the major decisions rendered this past year and explore ways for class action practitioners and in-house counsel to effectively and efficiently manage class actions. Please click here to register.
To help you keep abreast of relevant activities, below find a breakdown of some of the largest federal and state COVID-19 driven events to impact the Consumer Finance Services industry this past week:
- On September 25, the U.S. Department of Labor updated its Frequently Asked Questions document on the Families First Coronavirus Relief Act (FFCRA). The FFCRA requires certain employers to provide their employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. For more information, click here.
- On September 25, the Financial Stability Oversight Council (Council) voted unanimously to approve a statement summarizing its review of the secondary mortgage market. The Council’s review focused particularly on the activities of Fannie Mae and Freddie Mac. In conducting the review, the Council applied the framework for an activities-based approach described in the interpretive guidance on nonbank financial company determinations issued by the Council in December 2019. For more information, click here.
- On September 16, the Department of Veterans Affairs (VA) announced that individuals affected by natural disasters — such as the wildfires in California and Oregon or hurricanes in the Southeast — can receive a 90-day suspension of debt collection efforts to give them time to get back on their feet. The VA previously announced that it suspended the collection of certain debts through the end of 2020 as a result of the COVID-19 pandemic. Only debts that fall under the jurisdiction of the Treasury Department are eligible for suspension. For more information, click here.
- On September 15, the Consumer Financial Protection Bureau released its Outline of Proposals Under Consideration and Alternatives Considered for small business lending data collection rulemaking. For more information, click here.
- As of September 28, state agencies can use the State Examination System, a nationwide platform for consumer complaints created by the Conference of State Bank Supervisors. The new system will enhance supervisory oversight of nonbanks. For more information, click here.
- On September 25, Illinois Governor J.B. Pritzker extended Executive Order 2020-25, which includes limits on garnishments and wage deductions. The order is now in effect until October 17, 2020. For more information, click here.
- On September 18, the Nevada Financial Institutions Division granted an extension allowing employees of licensed collection agencies to work from home through at least the end of 2020 so long as employees follow data security and other protocols. For more information, click here.
- On September 25, the Federal Trade Commission (FTC) alerted consumers that businesses have falsely claimed to be approved lenders for the Small Business Administration’s coronavirus lending program. The FTC warned that small business owners are targeted online, as well as through phone calls. In the COVID-19 era, “the injury those companies inflict on small business owners and consumers is exacerbated.” To read the full announcement, click here.
- On September 23, the U.S. Department of Commerce shared how the department plays a crucial part in COVID-19 response and recovery efforts. The department continues to provide economic relief to states and communities, which includes support to the National Institute of Standards and Technology and the National Telecommunications and Information Administration. To read how the Commerce Department is assisting in other areas, click here.