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Oklahoma regulator amends working from home guidance
On June 30, the Oklahoma Department of Consumer Credit extended, for the third time, its interim guidance to regulated entities on working from home (see here, here, and here for previous coverage). The guidance sets forth data security standards that regulated entities must meet in order for the department to take no action with respect to employees conducting activities that would otherwise require licensure of their homes. The revised guidance also provides that the department will expedite and waive fees for change of address applications in the event that a licensed location is compromised by Covid-19 or is undergoing decontamination. The guidance was extended through September 30, 2020.
New York Department of Financial Services adopts emergency measure to provide relief to insureds
On June 28, the New York Department of Financial Services adopted an emergency measure that amends the insurance regulations to provide relief to policyholders, contract holders, and insureds who can demonstrate financial hardship relating to the Covid-19 pandemic. Among other things, the emergency measure: (i) provides that premiums remitted by a creditor will be assumed to provide coverage under a credit life or credit unemployment insurance policy for insured debtors whose payments are not more than three months overdue; (ii) provides certain protections for insureds who do not make timely premium payments to certain insurance entities; and (iii) prohibits a premium finance agency from cancelling an insurance policy due to an insured’s failure to make a timely installment payment for a period of at least 90 days, if the insured can demonstrate financial hardship due to Covid-19, and subject to the safety and soundness of the premium finance agency.
Work-from-home no action position extended by Connecticut banking commissioner
On June 19, the banking commissioner in Connecticut issued a memorandum extending its “no action” position regarding temporary work-from-home guidance. Previously covered here and here, the memorandum permits consumer credit licensees to work from home, even though such home location is not licensed by the Banking Department, so long as certain criteria spelled out in the memorandum are met. The guidance is extended through August 31, 2020.
New York regulator issues guidance to state financial institutions regarding consumer relief
On June 17, the New York State Department of Financial Services issued guidance to state-regulated financial institutions, urging them to support consumers that have been negatively impacted by Covid-19. The department urged furnishers of credit information to, among other things, report accommodations reached under the CARES Act as “current,” unless the credit was delinquent prior to the accommodation; report certain Covid-19 related delinquencies as forborne, deferred, or affected by a natural or declared disaster consistent with the furnisher’s treatment of the account; and promptly conduct reasonable investigations of consumer-disputed credit information.
New York regulator issues guidance for state consumer credit reporting agencies
On June 17, the New York State Department of Financial Services issued guidance to state-regulated consumer credit reporting agencies regarding support for New York consumers impacted by Covid-19. The guidance indicates that all state-regulated consumer credit reporting agencies have agreed to take a number of steps to mitigate consumer harm, including permitting consumers at least one free credit report per month for six months, reminding furnishers of information of the appropriate manner to report accommodations reached pursuant to the CARES Act, and posting on their website a link to a page dedicated to Covid-19 information and updates.
Texas Office of Consumer Credit updates guidance for regulated lenders
On June 12, the Texas Office of the Consumer Credit Commissioner issued updated guidance for regulated lenders navigating the Covid-19 crisis. The guidance: (1) addresses the June 1 due date for filing annual reports; (2) encourages lenders to work with consumers, including by working out modifications to assist with payments, waiving fees and charges, suspending charged-off accounts, and suspending repossessions of collateral or foreclosure of real property, among other things; (3) reminds lenders of legal requirements for using electronic signatures; and (4) permits lenders to conduct regulated lending activity from unlicensed locations, subject to certain conditions. The guidance is in effect through July 31, 2020, unless withdrawn or revised
Texas Office of Consumer Credit updates guidance urging motor vehicle sales finance licensees to work with borrowers
On June 12, the Texas Office of the Consumer Credit Commissioner issued an updated advisory bulletin urging motor vehicle sales finance licenses to work with consumers during the Covid-19 crisis (previously covered here and here). Among other measures, the regulator urged licensees to increase consumer communication, work out modifications, waive certain charges, and suspend repossessions. The guidance is in effect through July 31, 2020, unless withdrawn or revised
Oklahoma Department of Consumer Credit issues an extension to interim guidance regarding temporary operations from home or alternate locations
On June 1, the Oklahoma Department of Consumer Credit issued a Second Amended Interim Guidance that extends previous guidance permitting mortgage loan originators and employees of regulated entities to work from home or an alternate site, as long as certain data security precautions are taken (previously discussed here and here). The guidance was extended through July 5, 2020.
South Carolina regulator issues interim guidance to businesses regarding payment or performance deferrals and modifications
On June 1, the South Carolina Department of Consumer Affairs issued interim guidance regarding business activities during Covid-19, including payment or performance deferrals and modifications. The department strongly encourages persons and entities engaging in consumer credit transactions or other activities governed by the South Carolina Consumer Protection Code and subject to the department’s oversight to work with borrowers during the Covid-19 crisis and to “be practical, flexible, and empathetic.” The department also encourages businesses to adopt a number of measures related to modifications, workout strategies, waiving late fees, deferment charges, NSF fees, and certain ACH withdrawals, suspending charging off accounts, and suspending repossessions of collateral and foreclosure of real property. The interim guidance also addresses escrow accounts and electronic signatures, and sets forth additional resources for businesses and consumers.
Texas regulator discusses emergency measures for credit access businesses
On April 27, the Texas Office of Consumer Credit Commissioner issued an advisory bulletin encouraging credit access businesses to consider certain emergency measures in light of the Covid-19 pandemic. The bulletin encouraged credit access businesses to work with consumers by increasing communications, working out loan modifications that avoid delinquencies and negative credit reporting, waiving certain charges and fees, and suspending vehicle repossession and charge offs. The office also extended the deadline for required first quarter reporting from April 30 until May 31, 2020, and permitted credit access business activity to occur from otherwise unlicensed locations, so long as certain requirements are met.