In July 2019, the Consumer Financial Protection Bureau and the Federal Reserve Board published a final rule on inflation-based adjustments to the dollar amounts under Regulation CC. As a reminder, the increased dollar amounts become effective July 1, 2020.
The Dodd-Frank Act requires adjustments every five years, calculated by the annual percentage increase in the
On April 15, the Consumer Financial Protection Bureau and the Federal Housing Finance Agency (“FHFA”) announced a joint initiative known as the Borrower Protection Program (“Program”), through which the CFPB and FHFA will share servicing information during the coronavirus (“COVID-19”) national emergency.
The CFPB currently processes consumer
Last week, in Russo v. POM Recoveries, Inc., the United States District Court for the Eastern District of New York denied summary judgment and allowed a suit to proceed against a debt collector for an alleged violation of Section 1692c of the Fair Debt Collection Practices Act. Plaintiff John Paul Russo alleged that POM violated
Earlier this week, millions of Americans began receiving direct deposits from the federal government as part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), signed into law last month. Although meant to provide relief to consumers feeling the impact of furloughs and pay cuts as a result of the
Massachusetts Attorney General Maura Healey issued on Tuesday the latest in a series of orders regarding debt collection in the face of the coronavirus (“COVID-19”) outbreak. The most recent guidance document is aimed at protecting the relief payments that many Americans expect to receive in coming weeks thanks to the Coronavirus Aid, Relief,
As New York considers reopening the State’s economy after a months-long shutdown, legislators recently reached an agreement with private student loan servicers to provide financial relief to borrowers. Spearheaded by the New York State Department of Financial Services (“DFS”), the agreement supplements the federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), by extending
On April 13, the Consumer Financial Protection Bureau announced a new interpretive rule that makes it possible for consumers to receive certain pandemic-relief payments through newly-issued prepaid accounts rather than paper checks. According to CFPB Director Kathleen Kraninger, the interpretive rule is designed to “ensure that consumers can receive these payments in a fast, secure,
Like most industries today, consumer finance services businesses are being significantly impacted COVID-19. Troutman Sanders and Pepper Hamilton have 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
A new bill was proposed on April 7 in the House of Representatives which, if passed, would amend the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. The proposed bill aims to regulate how medical debts are handled under these statutes.
The bill’s current name is: “To amend the Fair Credit Reporting
Several coronavirus (“COVID-19”) response bills were introduced in the New Jersey Senate this past week. Among them is the “COVID-19 Financial Security for Consumers Act,” which aims to prohibit creditors and debt collectors from collection activities during the pandemic and requires health insurance carriers to cover treatment for COVID-19. A summary of the