The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2 trillion stimulus bill enacted in response to the ongoing coronavirus (“COVID-19”) pandemic, contains numerous provisions impacting federal student loans for the next six months. Considering how the amount of outstanding student loan debt is in excess of $1.5 billion, and much of that
New Jersey Gov. Phillip Murphy announced on March 28 that homeowners whose finances have been affected by the coronavirus (“COVID-19”) would get a 90-day reprieve on their mortgage payments.
According to the announcement, lenders must waive late fees and other expenses that a borrower would incur due to the grace period.
Last Friday, the North Carolina Department of Insurance issued an order and bulletin enacting emergency provisions that require debt collectors – including debt buyers – to provide North Carolinians with the option of deferring payments that are due during North Carolina’s major disaster proclamation. The Department provided an amended order on Monday, March 30.
Like most industries today, consumer finance services businesses are being significantly impacted by the novel coronavirus (“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-related news and developments, recommendations from leading health organizations, and tools
Overview
President Trump today signed into law H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2 trillion relief measure. Title IV, the economic stabilization portion of the CARES Act, contains three sections which dramatically affect businesses in the consumer financial services space. These sections include a foreclosure moratorium on federally-related
On March 26, federal regulators advised financial institutions to consider providing small-dollar loans to cash-strapped consumers during the coronavirus (“COVID-19”) pandemic. Although the guidance encouraged “responsible” lending that is “consistent with sage and sound banking practices and applicable laws, including consumer protection laws,” the joint-agency statement has been criticized by some consumer
Today, Massachusetts Attorney General Maura Healey issued a sweeping emergency regulation instituting a prohibition on debt collectors making outbound debt collection calls or pursuing other debt collection practices as a result of the coronavirus (“COVID-19”) health crisis. These rules take effect on March 28, and end when either of the following occurs: (1) 30 days
The Department of Education announced today that it would defer collection actions on defaulted student loans for at least 60 days as part of the federal government’s overall response to the coronavirus (“COVID-19”) pandemic.
The most significant action mentioned in the announcement is a temporary halt to “Treasury offsets.” This powerful tool allows the Department
On March 22, the Board of Governors of the Federal Reserve System (“FRB”), Federal Deposit Insurance Corporation, National Credit Union Administration, Office of Comptroller of the Currency, Consumer Financial Protection Bureau, and the Conference of State Bank Supervisors (collectively, “the Agencies”) issued an interagency statement, available here, providing guidance for lenders on how to
The Supreme Court of Appeals of West Virginia issued an administrative order on Sunday, March 22 that covers public health and safety concerns related to the coronavirus (“COVID-19”). In it, the Court recognizes “the current COVID-19 crisis creates an unprecedented public health emergency that requires immediate action to encourage effective social distancing and reduce the