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New Mexico issues order prohibiting writs of garnishment or writs of execution of consumer debt
On June 5, the New Mexico Supreme Court issued an order prohibiting writs of garnishment or writs of execution as they pertain to consumer debt collection cases. The order does not affect writs of garnishment and writs of execution issued prior to June 8, 2020. Other rules pertaining to consumer debt collection cases are also unaffected. The order does not apply to domestic support obligations, including support and spousal maintenance obligation. The order will remain in effect until amended or withdrawn by a future order.
NYDFS and French regulator sign fintech MOU
On June 3, NYDFS and France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) signed a Memorandum of Understanding (MOU) to help ease fintech innovators’ entry into the New York and French markets. This is the first fintech cooperation agreement signed by the ACPR with a U.S. regulator. Under the terms of the MOU, the two regulators will (i) refer companies to one another for potential market entry; (ii) “exchange information about regulatory and policy issues”; (iii) ensure innovators in both jurisdictions receive equal levels of support; and (iv) “share regulatory and supervisory expertise and best practices.” According to NYDFS, the regulators aim to encourage and support financial innovation, enhance consumer protections, and encourage “healthy market competition in their respective markets.”
Louisiana enacts Act limiting seizure of consumer stimulus payments
On June 4, the Louisiana governor signed Act No. 44, which exempts from seizure any consumer stimulus payments directly received by the debtor pursuant to federal law enacted to provide Covid-19 relief, with the exception of seizure for spousal or child support payments. This exemption does not apply to unemployment compensation received by the debtor. The act limits the circumstances in which government payments, grants, or loans received as a result of an “extraordinary emergency event” (which includes, among other things, a public health emergency affecting Louisiana) by a natural or judicial person who is a U.S. citizen domiciled in Louisiana may be seized, sold, attached, or restrained. The act became effective on June 4, 2020.
Nevada Financial Institutions Division advises collection agency licensees that they may operate
On June 4, the Nevada Department of Business and Industry, Financial Institutions Division advised collection agency licensees that they may operate their business while following all remaining emergency directives issued by the governor, state agencies, justice court orders, and all applicable state and federal laws. The issuance follows guidance issued on March 20, which deemed a collection agency a non-essential business under the Nevada governor’s orders to close non-essential business (previously discussed here).
California AG finalizes proposed CCPA regulations, requests expedited review
On June 1, the California attorney general submitted final proposed regulations implementing the California Consumer Privacy Act (CCPA) to the California Office of Administrative Law (OAL). The CCPA—enacted in June 2018 (covered by a Buckley Special Alert) and amended several times—became effective January 1. The proposed regulations, if approved, will set forth guidance regarding complying with the CCPA, including requirements related to the various required notices under the CCPA (e.g., Notice at Collection, privacy policy, etc.), business practices for handling consumer requests (e.g., methods for submitting and responding to requests to know and requests to delete), service providers, training and recordkeeping, verification of requests, special rules for minors, and nondiscrimination requirements.
The final version of the proposed regulations, which are substantively unchanged from the March draft modifications (covered by InfoBytes here), include an updated statement of reasons summarizing the modifications and reiterating that the “stated bases for the necessity of the proposed regulations continue to apply to the regulations as adopted.”
The AG also submitted an expedited review request, asking that the regulations take effect upon filing with the Secretary of State. The CCPA imposes a July 1 statutory deadline for the AG to adopt initial regulations. However, due to challenges imposed by the Covid-19 pandemic, California Executive Order N-40-20 allows the OAL 30 working days, plus an additional 60 calendar days to finalize proposed regulations. Because of this, the AG respectfully requested that the OAL complete its review within 30 days, given the July 1 deadline.
CSBS, state regulators express concerns with CFPB taskforce RFI
On June 1, the Conference of State Bank Supervisors (CSBS) submitted a comment letter in response to the CFPB’s Taskforce on Federal Consumer Financial Law’s request for information (RFI). As previously covered by InfoBytes, the taskforce issued the RFI in March seeking input on consumer protection areas for the taskforce to focus its research and analysis, and requesting suggestions for “harmonizing, modernizing, and updating the federal consumer financial laws.” In the letter, CSBS expresses significant concerns regarding the timing of the RFI due to the Covid-19 pandemic, as well as the content of the RFI itself. The letter conveys state regulator concerns over the RFI’s “inclusion of inquiries soliciting input on whether additional preemption of state laws and state regulatory authority is warranted” and highlights the absence of questions asking whether less federal preemption is warranted. According to the letter, “the inclusion of outcome-oriented questions focused on expanding preemption of state authority raises serious questions regarding the objectivity and mission of the Taskforce.” The letter also notes that state regulators and the CFPB have exercised “concurrent regulatory, supervisory, and enforcement authority,” while retaining independent authority, and that coordinated efforts have “fostered a more efficient and effective regulatory system.” The fact that former state regulators are not represented on the taskforce raises several concerns for the state regulators: “This spirit of coordination and collaboration does not seem to be reflected in the timing or content of the request for information, and we fear, the future work of the Taskforce,” the letter states.
North Carolina Attorney General announces joint relief effort for North Carolinians facing Covid-19 financial hardship
On June 4, the North Carolina attorney general announced the Carolina Relief Plan, a voluntary agreement whereby participating financial institutions will offer certain financial relief to customers facing Covid-19 financial hardships. Relief includes, among other things, allowing eligible customers to request a forbearance on residential mortgage payments not otherwise covered by the CARES Act, assistance for payment extensions of auto loan accounts, and relief from monthly maintenance fees, overdraft fees, and CD early withdrawal penalties. Under the agreement, any participating financial institution also must: (1) offer to place a moratorium on residential mortgage foreclosures and consumer auto repossessions through at least June 30, 2020; (2) refrain from reporting loans subject to Covid-19 accommodations; and (3) inform customers about the assistance they are being offered and of the heightened risk of scams. One financial institution has signed onto the relief plan as of the time of the announcement.
Indiana extends expiration date of licenses, certificates and permits
On June 3, the Indiana governor issued Executive Order 20-31, which extends regulatory relief related to Covid-19. Among other things, state agency-issued licenses, certifications or permits that have expired, or are set to expire, during the public health emergency were extended to June 30, 2020. This extension applies to, among other things, occupational and professional licenses.
California DBO takes action against company for PACE fraud
On May 27, the California Department of Business Oversight (CDBO) filed an order to ban an Encino-based company from the Property Assessed Clean Energy (PACE) industry for allegedly engaging in fraudulent behavior. According to the press release, the CDBO received 30 complaints from 2018 to 2019 alleging the company solicited homeowners by advertising a “free government program,” but used the homeowners’ personal financial information to submit contracts to PACE program administrators with forged electronic signatures. Additionally, complaints alleged various other fraudulent and illegal actions including, (i) the creation of false email accounts to have the PACE financing documents routed to the agents instead of the homeowners; and (ii) the impersonation of homeowners’ voices on state law required completion calls. The CDBO also asserts that the company sold products at three to five times the usual industry rate and used “high-pressure” sales tactics directed at the elderly and non-primary English speakers. In addition to the Desist and Refrain Order, which demands the company discontinue illegal practices and stop soliciting PACE contract, the CDBO notes that a similar but separate order will also be filed against the company president, who is a PACE solicitor agent.
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.