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Financial Services Law Insights and Observations

Texas updates guidance for motor vehicle sales finance licensees, continuing to urge them to work with consumers and allowing employees to work remotely

State Issues Covid-19 Texas Auto Finance Consumer Finance Licensing ESIGN Fintech

State Issues

On April 15, the Texas Office of the Consumer Credit Commissioner updated its advisory bulletin (previously discussed here, here, here, here, here, here, here, and here) urging motor vehicle sales finance licensees to continue to work with consumers during the Covid-19 crisis. Among other measures, the regulator asks licensees to increase consumer communication regarding the effects of Covid-19 on the lender’s policies (including communication procedures), work out modifications for payment difficulties, review policies for fees, late charges, delinquency practices, and repossessions, and that there may be limits on allowable deferment charges, and refers a consumer to the protections included in advisory bulletin B16-4. The guidance also: (i) reminds licensees of legal requirements for using electronic signatures, and (ii) continues to permit licensees to conduct activity from unlicensed locations, subject to certain conditions. The guidance is in effect through May 31, 2021, unless withdrawn or revised.

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