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Arkansas governor issues executive order suspending certain notarization requirements
On March 30, the Arkansas governor issued an executive order suspending certain provisions of the Arkansas Code regarding notaries public for the duration of the emergency. The executive order permits an official signature or seal of a notarial certificate or seal to be executed when the principal or signer is present remotely. It also suspends provisions requiring electronic notaries public when a notary public is an Arkansas-licensed attorney, Arkansas-licensed title agent, or is employed by a financial institution registered with the Arkansas State Bank Department and the document signer or witness is present via real-time audio and visual means.
Pennsylvania attorney general announces launch of consumer relief initiative
On March 30, Pennsylvania Attorney General Josh Shapiro announced the launch of “PA Care Package,” a consumer relief initiative. The program, which will expand upon the federal CARES Act, calls for financial institutions and banks to offer assistance to Pennsylvanians facing financial hardship due to impacts of the Covid-19 pandemic. This includes expanding small and medium business loan availability, and offering grace periods for mortgage and loan payments, late fees, evictions and repossessions, and adverse credit reporting.
Michigan Department of Insurance and Financial Services defines certain operations as essential
On March 30, Michigan Department of Insurance and Financial Services Director Anita Fox issued a bulletin clarifying that certain financial services are considered essential businesses and operations. The following financial businesses are deemed essential: (i) banks, credit unions, and consumer finance providers, such as mortgage companies, consumer installment lenders, payday lenders, etc.; (ii) bond issuers; and (iii) title companies, inspectors, appraisers, surveyors, registers of deeds, and notaries. The bulletin clarified the scope of an executive order signed by Governor Whitmer on March 23, which in part, called for residents to stay in their homes and limited in-person exceptions to essential activities (previously discussed here).
New Mexico governor issues order temporarily permitting remote notarization
On March 30, New Mexico Governor Michelle Grisham issued an executive order temporarily permitting remote notarizations under certain conditions, including two-way audio-video technology. The order went into effect immediately and is set to expire on June 20.
Illinois Department of Financial and Professional Regulation issues guidance to debt collection agencies and debt buyers
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued guidance to Illinois-licensed debt collection agencies and debt buyers regarding Covid-19. The guidance reminds debt collection agencies that the Illinois Collection Agency Act does not contemplate collectors’ ability to conduct business at any place other than the address of record with the Department. Debt collection agencies seeking to work at a location other than their address of record, including remotely, are directed to provide notice to the Department within 14 days of any address changes. Debt collection agencies and debt buyers are encouraged to work with consumers to modify payment schedules or suspend all collection activity for a period of no less than 60 days. The Department also notes that it will closely monitor adherence to the prohibitions on communications at times and places that should be known to be inconvenient to the debtor under the Federal Debt Collection Practices Act and the Illinois Collection Agency Act.
Illinois Department of Financial and Professional Regulation issues notice to consumer credit licensees
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued a notice to consumer credit licensees stating that it appreciates advance notice of any changes to the licensee’s usual business practices. Licensees are expected to “act responsively and proactively to address any consumer harm that may arise,” including through waiving defaults where a consumer is unable to make a payment as a result of the licensee’s business practices. New credit transactions originated during Covid-19 will be evaluated as part of the next examination cycle.
Illinois Department of Financial and Professional Regulation issues guidance to Consumer Installment Loan Act, Payday Loan Reform Act, and Sales Finance Agency Act licensees on office closures
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued guidance to licensees under the Consumer Installment Loan Act, Payday Loan Reform Act, and Sales Finance Agency Act regarding office closures due to Covid-19. A licensee may close its offices without notice and approval of the Department as otherwise required under applicable law if certain conditions are met. For example, the licensee must provide notice to the Department no later than 24 hours after the closure and one business day prior to reopening, and the licensee must provide reasonable methods for consumers to make payments while its offices are closed. Additionally, if any payments are due on any obligations to a licensee on any closed day, then the payment must be considered received on the closed day for all purposes, including the computation of interest or charges, if received at any time before the close of business on the 30th calendar day following the last closed day.
Illinois Department of Financial and Professional Regulation issues guidance to credit unions
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued a notice to credit unions providing that credit unions may submit a request to postpone the credit union’s 2020 annual meeting to the Department’s Credit Union Section. In addition, the guidance requires credit unions to submit a waiver request to hold annual membership meetings in a month other than January, February, and March.
Illinois Department of Financial and Professional Regulation issues guidance to student loan servicers
On March 30, the Illinois Department of Financial and Professional Regulation, Division of Banking (Division), issued guidance encouraging Illinois-licensed student loan servicers to make prudent efforts to meet the financial needs of all student loan borrowers affected directly or indirectly by the Covid-19 pandemic. The guidance reiterates the importance of provisions in the Illinois Student Loan Servicing Rights Act that prohibit servicers from engaging in any unfair or deceptive practices and misapplying payments made by borrowers. Servicers are reminded that they are obligated to lay out all available options to borrowers, including income-based repayment, deferment, forbearance, and relieving borrowers of interest. In addition to adhering to the credit reporting provisions set forth under the CARES Act, the Division also encourages student loan servicers to use the disaster status code in conjunction with a deferment when reporting to the consumer credit reporting agencies to minimize any negative credit reporting impact to consumers due to the Covid-19 crisis.
Illinois Department of Financial and Professional Regulation issues questions and answers to credit unions regarding Covid-19
On March 30, the Illinois Department of Financial and Professional Regulation (Department) issued questions and answers to credit unions related to Covid-19 safety concerns. The guidance provides responses to questions regarding, among other things, receiving extensions for annual meetings, holding annual meetings by teleconference or other communications equipment, whether prior approval from the Department is required to close branches or lobbies, and whether the Department needs to approve any concessions, such as payroll interruption loans, extension, or deferments.