Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter – June 2022 #3 | Troutman pepper
Like most industries today, consumer credit services businesses continue to be significantly impacted by COVID-19. To help keep you up to date with relevant activity, below is a breakdown of some of the biggest federal and state legislative and regulatory events impacting the consumer credit services industry during the week. last :
Privacy and cybersecurity activities
- On June 17, the Federal Reserve released its latest monetary policy report, which identified the growth of stablecoins as a key development for the financial stability of the United States and identified certain types of stablecoin arrangements as issues of concern. According to the Fed, “stablecoins that are not backed by safe and sufficiently liquid assets and that are not subject to appropriate regulatory standards create risks for investors and potentially for the financial system, including vulnerability to potentially destabilizing races”. For more information, click here.
- On June 16, the Federal Financial Institutions Examination Council (FFIEC) announced the availability of data on 2021 mortgage loan transactions reported under the Home Mortgage Disclosure Act (HMDA) by 4,338 U.S. financial institutions. Institutions covered include banks, savings associations, credit unions and mortgage companies. As the most comprehensive publicly available information on mortgage market activity, HMDA data is used by industry, consumer groups, regulators and others to assess potential fair lending risks and to other purposes. The data helps the public assess how financial institutions are meeting the housing needs of their local communities and facilitates fair reviews by financial regulators, consumer compliance and the Community Reinvestment Act. For more information, click here.
- On June 15, the Consumer Financial Protection Bureau (CFPB) released an update to its December 2021 market surveillance investigation into Buy Now, Pay Later (BNPL) – a short-term, no-cost consumer credit product. interest that has become almost ubiquitous at online outlets and, increasingly, in brick-and-mortar stores. Conducted with five BNPL companies, the survey commissioned information and data on several key areas of consumer impact, including data provided by BNPL companies to consumer information companies for inclusion in the credit reports. For more information, click here.
- On June 14, the CFPB announced its request for public input on how bank customers can assert their rights to better customer service from big banks. In the request for information, the CFPB is looking for data on barriers that may prevent people from enjoying high standards of customer service and high-quality human interactions with their banks or credit unions, as well as experiences consumers. For more information, click here.
- On June 14, the Office of the Inspector General of the Department of Justice released its audit of the US Marshals Service’s handling of seized cryptocurrency, covering the period from fiscal years 2017 to 2021. The audit report concludes that the Marshals Service does not have the necessary operational procedures. and controls and faces issues managing and tracking seized cryptocurrency. For more information, click here.
- On June 13, the CFPB released its annual report on major financial issues facing military members, veterans, and military families based on the complaints they submitted to the CFPB. The military informed the CFPB of the billing inaccuracies and that bill collectors used aggressive tactics to collect allegedly unpaid medical bills. Service members also reported failures of credit reporting companies to help resolve inaccuracies and other credit reporting issues. For more information, click here.
- On June 11, Coin Center, a cryptocurrency-focused nonprofit group, sued the United States, the Treasury Department, the Internal Revenue Service, and related individuals, arguing the unconstitutionality of a recent amendment to the tax code. The amendment, known as Provision 6050I and commonly referred to as the Transaction Reporting Rule, was part of the Infrastructure Investment and Jobs Act passed last summer, and requires individuals and businesses who receive $10,000 or more in cryptocurrency to report to the government the name, date of birth, and social security number of the person who sent those funds. For more information, click here.
- On June 14, California Attorney General Rob Bonta released a consumer alert, following reports that hospitals failed to meet their obligations under state law to provide free or reduced-cost health care to eligible patients. Attorney General Bonta also sent letters to hospitals “advising them that they must provide written notice to patients – in their native language – of the availability of ‘charity care’ and how to apply”. For more information, click here.
- On June 9, North Carolina Attorney General Josh Stein released a statement after the US Department of Education announced it would cancel all remaining federal student loans for students attending any college. managed by Corinthian Colleges. In North Carolina, “12,470 borrowers will receive a total of $142.1 million in loan relief.” After noting that cancellations would automatically be enforced, Attorney General Stein said, “I have been fighting on behalf of these victimized students for years, and I am grateful to the Biden administration for taking action to help them. Canceling these loans will give these student borrowers a fresh start in building a prosperous future, free from undue debt burdens. For more information, click here.
Privacy and cybersecurity activities:
- On June 15, Senators Elizabeth Warren (D-MA), Ron Wyden (D-OR), Patty Murray (D-WA), Sheldon Whitehouse (D-RI) and Bernie Sanders (I-VT) presented the Health and Location Data Protection Act, which would prohibit data brokers from selling health and location data. The law would also empower the Federal Trade Commission (FTC), state attorneys general, and injured parties to file lawsuits to enforce the law, while providing $1 billion in funding to the FTC. For more information, click here.
- On June 15, the Governor of Maine signed House Paper 669, establishing the Maine Data Collection Protection Act. The law would prohibit data collectors from collecting and aggregating, selling, or using information from specific types of public records for the purpose of determining a consumer’s eligibility for consumer credit, employment or residential accommodation. A data collector includes anyone who collects or attempts to collect data from public records and sells that data to third parties for any purpose, including but not limited to determining eligibility. of an individual to consumer credit, employment or residential housing. To learn more, click here.
- On June 13, the U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) released guidance on how health care providers and health plans can use communication technologies remotely to provide health information compliant audio-only telehealth services. Privacy, Security, and Portability and Accountability Act (HIPPA) Violation Notification Policy. OCR Director Lisa J. Pino said audio-only telehealth can help “reach patients in rural communities, people with disabilities, and others seeking the convenience of remote options.” To learn more, click here.