Like most industries today, Consumer Finance Services businesses are being significantly impacted by the novel coronavirus (COVID-19). 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.

To help you keep abreast of relevant activities, below find a breakdown of some of the biggest COVID-19 driven events at the federal and state levels to impact the Consumer Finance Services industry this past week:

Federal Activities

State Activities

Privacy and Cybersecurity Activities

Federal Activities:

  • On October 8, the U.S. Small Business Administration, in consultation with the Treasury Department, released an updated loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. For more information, click here.
  • On October 2, the U.S. Small Business Administration (SBA) released guidance on required procedures for changes of ownership in an entity that obtained a PPP loan. Under some circumstances, prior SBA approval may be required for change in ownership of the borrower entity. For more information, click here.
  • On October 1, the Federal Reserve Board extended temporary actions, increasing the availability of intraday credit extended by Federal Reserve Banks on both a collateralized and uncollateralized basis until March 31, 2021. These temporary actions (1) suspend uncollateralized intraday credit limits and waive overdraft fees for institutions eligible for the primary credit program; (2) permit a streamlined procedure for secondary credit institutions to request collateralized intraday credit; and (3) suspend two collections of information used to calculate net debit caps. For more information, click here.
  • On September 18, the National Apartment Association and other landlords filed a class-action lawsuit, challenging the constitutionality of the U.S. Centers for Disease Control and Prevention’s September 4 emergency order that imposed a nationwide moratorium on certain residential evictions through December 31. For more information, click here.

State Activities:

  • As of October 1, commercial landlords in Oregon may enforce their right to collect debt from a commercial tenant, failing to pay rent during Oregon’s emergency period — April 1 through September 30, 2020. To preserve the landlord’s right to collect, landlords must provide tenants with written notice on or after October 1. For more information, click here.
  • On October 9, the Washington Collection Agency Board extended the state’s temporary work-from-home rule for employees of licensed collection agencies until February 17, 2021. Enacted in June, the rule arose in response to the COVID-19 pandemic. For more information, click here.
  • On October 17, the Massachusetts’ Eviction and Mortgage Foreclosure Moratorium Act (EMFM Act) is set to expire. The EMFM Act denotes an emergency law, restricting most evictions and foreclosure activities for a 120-day period, or until 45 days after the COVID-19 Emergency Declaration is lifted, whichever occurs sooner. For more information, click here.
  • On October 20, New York Governor Andrew Cuomo’s Executive Order 202.64, pertaining to commercial tenants, is set to expire. This order places a moratorium on initiating a proceeding or enforcement of an eviction of any commercial tenant for nonpayment of rent or a foreclosure of any commercial mortgage for nonpayment of such mortgage. First signed on July 6, this order has been extended several times. For more information, click here.

Privacy and Cybersecurity Activities:

  • As of October 11, over 9,345,542 voters have cast their ballots, according to the S. Election Project. Around this time in 2016, less than 100,000 individuals had voted. This significant shift is due in part to COVID-19. Running an election during a pandemic introduces several challenges, including those relating to election security. Several questions remain and are discussed in the International Association of Privacy Professionals’ Keynote Series “Defending Democracy.” Richard Clarke, former member of the White House National Security Council, spoke about privacy and cybersecurity lessons learned during the 2016 election, and called for “high levels of cybersecurity” to achieve and maintain individual privacy. Click here to watch a recording of the event.
  • From October 6-9, the Payment Card Industry Security Standards Council (PCI SSC) community assembled virtually for the 2020 North America Community Meeting. The meeting provided “a forum for leaders in the payment security industry to share knowledge, collaborate, and promote understanding and adoption of PCI Security Standards and Programs.” Participants discussed several security topics, including those stemming from the COVID-19 pandemic. In particular, PCI SSC discussed its response to COVID-19 challenges by providing its community supporting resources on issues relating to “how to perform remote assessments, extending expiry dates and deadlines, and moving all in-person training to an online format.” The PCI Perspectives Blog and the PCI SSC COVID-19 Resource Page represent two of the resources discussed. To learn more about the virtual event, click here.

The California bar exam took place on October 5 and 6, delayed by the COVID-19 pandemic. The American Civil Liberties Union wrote to the California Supreme Court warning that the “state’s use of ExamSoft for remote proctoring will have ‘discriminatory impacts,’ citing what it claims is ‘inherently biased’ facial recognition technology” and implicates the California Consumer Privacy Act. The California Bar’s interim executive director responded that the bar “will not rely upon facial recognition technology for any final decisions about an applicant’s identity or integrity or to prevent any applicant from completing their exam.” To read the full report, click here.