While the nation faces unprecedented furloughs, layoffs, and economic difficulties, scammers continue to find novel ways to profit. In an attempt to dispel misinformation and provide guidance, the Federal Trade Commission is taking action to halt snake oil products and educate consumers on these ever-evolving scams.
Mimicking techniques routinely used by lenders to lawfully communicate
On March 30, the Illinois Department of Financial and Professional Regulation (“the Department”) issued a statement, accessible here, providing guidance to licensed debt collectors and debt buyers relaxing statutory guidelines mandating that collection actions only take place at their registered addresses. As many non-essential businesses throughout the state transition into having employees work from
One day after Virginia Gov. Ralph Northam imposed a state-wide stay-at-home order, the Supreme Court of Virginia extended the ongoing judicial emergency by 20 days, to run through April 26, 2020.
On March 16, the Chief Justice declared a judicial emergency, effective through April 5, “to protect the health and safety of court employees,
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
In response to the global coronavirus (“COVID-19”) pandemic, the Consumer Financial Protection Bureau announced that it has postponed certain data collections from the financial services industry related to CFPB rules. This extension of flexibility to the financial services industry is intended to facilitate companies focusing their resources on consumers during this time.
CFPB Director Kathleen
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.
General
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a new program within the U.S. Small Business Administration’s (SBA’s) flagship 7(a) Loan Program called the “Paycheck Protection Program” (PPP). Under the PPP, SBA will guarantee 100 percent of the amounts loaned by participating lenders to certain U.S. small businesses, nonprofit organizations, veterans
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
