Nebraska notifies entities of background check and notification requirement changes

Licensing Nebraska Consumer Finance NMLS

On June 17, the Nebraska Department of Banking and Finance issued a letter identifying two updates to Nebraska’s consumer financial services licensing laws that apply to entities with either the Nebraska Delayed Deposit Services License, the Nebraska Installment Loan License, the Nebraska Installment Sales License, the Nebraska Money Transmitter License, or the Nebraska Mortgage Banker License. The first change will require consumer financial licensees to utilize NMLS-based background checks to ensure greater uniformity for all consumer financial services licensees. Second, the state will now require a licensed company to notify the state’s Department within three business days of becoming aware that a data breach involving Nebraska residents had occurred. As previously covered by InfoBytes, these changes were included in Nebraska LB 1074 – a 2024 bill that established new consumer data privacy laws. The changes described in the letter will become effective on July 19.