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Nebraska attorney general issues warning about garnishing stimulus payments
On April 15, Nebraska Attorney General Doug Peterson warned that Nebraska law exempts certain income and property of low-income consumers from execution and attachment by creditors and debt collectors. The attorney general also warned that any attempt or threat to garnish or attach CARES Act stimulus funds that are exempt under Nebraska law will be considered an unfair trade practice under Nebraska’s Consumer Protection Act. Finally, the attorney general stated that his office is diligently monitoring consumer complaints, and encouraged consumers to file complaints if they experience aggressive debt collection during the Covid-19 crisis.
Idaho extends stay at home order
On April 15, the director of the Idaho Department of Health and Welfare extended the state’s stay at home order, previously covered here, through April 30 due to Covid-19.
California Department of Real Estate updates FAQs for licensing processes
On April 15, the California Department of Real Estate updated its FAQs for licensing processes. The FAQs answer questions relating, among other things, to the closure of DRE offices, the cancellation and rescheduling of licensing exams, renewal of real estate license, and electronic signatures on licensing documents.
Washington DFI issues guidance to investment advisers on CARES Act loans
The Washington Department of Financial Institutions issued guidance for state-registered investment advisers regarding CARES Act loans. Should a firm obtain a CARES Act loan, DFI will not consider it a net worth deficiency if certain criteria outlined in the guidance are met. However, if it is determined that some or all of the loan will not be forgiven, the firm must immediately notify the DFI and reclassify the loan as a liability.
Illinois executive order prohibits service of garnishment, wage deduction summonses
On April 14, the Illinois governor issued an executive order in response to Covid-19, suspending provisions of Illinois law that permit the service of a garnishment summons, a wage deduction summons, or a citation to discover assets on consumers. The suspension does not apply to domestic support obligations and does not relieve debtors of lability.
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.
New Mexico regulator halts repossessions during pandemic
On April 14, the New Mexico Public Regulation Commission provided notice that towing services for purpose of automobile repossessions are deemed non-essential by the governor. The notice effectively bans repossession for the duration of the Covid-19 emergency.
New Jersey passes legislation permitting remote notarization during state of emergency
On April 14, New Jersey passed legislation permitting remote notarization using communication technology for the duration of the public health emergency and state of emergency, provided certain requirements stipulated in the legislation are met.
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.
Washington governor issues temporary moratorium on garnishments and accruals of interest
On April 14, Washington Governor Jay Inslee issued an executive order temporarily prohibiting certain garnishments and accruals of interest statewide. Governor Inslee noted that garnishments and other collect judgments could hinder consumers from paying for basic necessities, thereby, endangering the lives of individual consumers and risking further negative impacts on public health. Inslee’s statewide order is in place through May 14.