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Illinois regulator issues Covid-19 best practices for consumer credit licensees
On April 14, the Illinois Department of Financial and Professional Regulation issued guidance for consumer credit licensees, noting that it expects them to work with consumers during the crisis and be flexible with repayment of debt. The department recommended following a number of best practices, including increasing communication with consumers, waiving late charges and insufficient fund fees, suspending debt collection efforts, recommending that the creditor utilize the natural disaster code when reporting a consumer’s credit wherever permissible, and ensuring sufficient staffing of customer service phone lines, among other things.
Louisiana Office of Financial Institutions issues guidance to non-depository licensees regarding Covid-19 relief
On April 14, the Louisiana Office of Financial Institutions issued guidance to non-depository licensees regarding Covid-19 relief. Although sections 4021 and 4022 of the CARES Act are specific to federally-backed mortgage loans, the OFI encourages all lenders to follow the terms of the provisions for all non-federally-backed mortgage loans as if they were federally-backed. Licensed lenders that offer deferred presentment transactions, small loans, or consumer loans are encouraged to provide certain relief options to borrowers, such as accepting partial payments, waiving fees, deferring payments and suspending negative credit reporting. Check cashers are also encouraged to offer discounted fees to customers during the crisis. Finally, non-depository licensees that temporarily close their locations are urged to post a notice at the location containing their contact information to assist customers with any questions.
Virginia requires licensure of debt settlement service providers
On April 7, the Virginia governor signed HB 1553, which outlines licensing and regulatory requirements for debt settlement services providers. Among other things, HB 1553 specifies that all debt settlement services providers must be licensed by the state, must file a bond with the state commissioner, and must comply with outlined record retention, reporting, and examination requirements. HB 1553 also outlines prohibited conduct, including prohibiting licensees from accepting a fee from a consumer prior to providing the requested debt settlement service, or from using false, misleading, or deceptive advertisements in connection with the offered services. HB 1553 also provides for cease and desist orders and civil penalties to be issued against licensees that violate these requirements, grants consumers a private right of action against licensees, and makes a violation a prohibited practice under the Virginia Consumer Protection Act. Additionally, the State Corporation Commission is directed to “establish a procedure, to be in effect by March 1, 2021, for any person to apply, prior to July 1, 2021, for a license” that will take effect when HB 1553’s requirements become effective on July 1, 2021.
Louisiana Office of Financial Institutions declares emergency for state-licensed lenders and brokers
On April 9, Louisiana Office of Financial Institutions Commissioner John Ducrest declared a state of emergency and issued guidance for Louisiana-licensed lenders and brokers in response to the Covid-19 crisis. The order: (i) provided guidance for temporarily closing or relocating operations, services, and products; (ii) waived the 30-day notification requirement pertaining to closures or relocations of operations, services, and products; and (iii) provided guidance for reporting operational changes and temporary relocations. The declaration expires April 30, unless otherwise extended or renewed.
Kansas extends professional and occupational license renewal deadlines
On April 9, Kansas Governor Laura Kelly issued an executive order extending the renewal deadlines for all occupational or professional licenses, certificates, permits, or registrations issued by a state agency. Such licenses/registrations/etc. will remain valid until 90 days following the termination of the statewide state of emergency. However, the order does not affect licensing for attorneys.
Nevada will grant temporary licensing exemptions for lenders to participate in PPP program
On April 9, the Nevada Financial Institutions Division announced a program to grant temporary exemptions to certain licensing requirements under Chapter 675 of the Nevada Installment Loan and Finance Act for approved Small Business Administration 7(a) lenders interested in participating in the Paycheck Protection for businesses impacted by Covid-19. The announcement included the exemption request form that must be submitted to the division by interested lenders.
Nevada temporarily exempts approved PPP lenders from licensing requirements
On April 9, the Nevada Financial Institutions Division (FID) issued a letter temporarily exempting from licensure under the Nevada Installment Loan and Finance Act currently approved Small Business Administration (SBA) 7(a) lenders under the Paycheck Protection Program (PPP). In order to take advantage of this relief, lenders that participate in the PPP must submit the exemption request form, which is found in the letter, for FID’s review and approval.
Please see Buckley’s dedicated SBA page, which includes additional SBA resources.
Delaware directs check sales and money transmitter licensees to use NMLS
The Delaware Office of the State Bank Commissioner issued a directive that, beginning on April 15, all Chapter 23, Sale of Checks and Transmission of Money Licensees are advised to use the Nationwide Mortgage Licensing System for applications, renewals, surrenders and amendments.
Delaware directs check sales and money transmitter licensees to use NMLS
The Delaware Office of the State Bank Commissioner issued a directive that, beginning on April 15, all Chapter 23, Sale of Checks and Transmission of Money Licensees are advised to use the Nationwide Mortgage Licensing System for applications, renewals, surrenders and amendments.
New Mexico regulator declares that licensed small loan companies are non-essential
On April 6, New Mexico’s Financial Institutions Division issued notice that businesses operated by companies licensed under the New Mexico Small Loan Act of 1955 are not “essential businesses” for purposes of the state’s stay at home order and must remain closed through April 30.