Like most industries today, consumer credit services businesses are significantly impacted by the novel coronavirus (COVID-19). Troutman Pepper has developed a COVID-19 Resource Center to guide customers through this unprecedented global health challenge. We regularly update this site with news and developments on COVID-19, recommendations from leading health organizations, and tools businesses can use for free.
To help keep you up to date on relevant activities, below is a breakdown of some of the biggest COVID-19 related events at the federal and state levels that have impacted the consumer credit services industry. last week :
Privacy and cybersecurity activities
- On March 2, New York Governor Kathy Hochul announced steps to strengthen sanctions enforcement against Russia by the New York Department of Financial Services (NYDFS), including the expedited purchase of technology additional blockchain analytics to enhance the ability to detect exposure among NYDFS licensed virtual currency. businesses to Russian individuals, banks, and other entities that the Biden administration has sanctioned, which aims to build capacity to enforce anti-money laundering laws and the bank secrecy law. For more information, click here.
- On March 1, the Consumer Financial Protection Bureau (CFPB) released a report on the nature of the medical billing system in the United States. The report concludes that the US healthcare system is supported by a billing, payment, collections, and credit reporting infrastructure where errors are common and patients often have difficulty getting them corrected or resolved. For more information, click here.
- On March 1, the Federal Reserve Board invited the public to comment on a supplement to its May 2021 proposal to ensure that Federal Reserve banks use a transparent and consistent set of factors when considering applications for credit. access to Federal Reserve accounts and payment services. For more information, click here.
- On February 28, the CFPB issued a compliance bulletin regarding involuntary repossessions of automobiles, reminding the industry of guidance previously issued by the CFPB in several editions of Supervisory Highlights and a 2020 Consent Order. For more information, click here.
- On February 28, U.S. Representative Steve Cohen introduced the Keeping Evictions Off Credit Reports Act in the House of Representatives, which would ban evictions related to the COVID-19 pandemic from appearing on such individuals’ credit reports. For more information, click here.
- On February 25, the NYDFS issued guidance to all persons and entities subject to its regulation due to the rapidly evolving situation in Ukraine, following the Russian invasion and imposition sanctions, especially companies engaged in virtual currency activities. For more information, click here.
- On March 4, New York Attorney General Letitia James launched a regulatory process to “examine whether big business is using the pandemic and inflation as an excuse to unfairly raise commodity prices.” Attorney General James said, “Throughout the pandemic, hardworking New Yorkers have struggled to make ends meet, but big business has celebrated record profits. It doesn’t stick. My office stands ready to use every tool in our toolbox to crack down on price gouging and pandemic-related profiteering. According to the press release announcing the launch of the rule, it is the “first-ever process for the development of predatory pricing rules by the Office of the Attorney General.” For more information, click here.
- On March 2, California Attorney General Rob Bonta announced “a nationwide investigation into TikTok, Inc. for promoting its social media platform to children and young adults while its use is associated with damage to the physical and mental health of young people”. Attorney General Bonta said: “Our children are growing up in the age of social media – and many feel they have to compete with the filtered versions of reality they see on their screens… We know that has a devastating effect on the mental health of children. health and wellbeing. But we don’t know what the social media companies knew about these wrongdoings and when. According to the press release, the survey will focus “on techniques used by TikTok to boost engagement among younger users, including strategies or efforts to increase the length of time spent on the platform and the frequency of engagement with the platform”. For more information, click here.
Privacy and cybersecurity activities:
- On March 3, the final version of the Utah Consumer Privacy Act (UCPA) was sent to the Governor of Utah for final signing. The UCPA passed both houses of the Utah Legislature with bipartisan support and, if signed, would make Utah the fourth state in the nation to pass comprehensive privacy legislation. The final version of the UCPA would go into effect on December 31, 2023, and its substantive requirements closely mirror those found in the Virginia Consumer Data Protection Act (VCDPA). The UCPA does not provide a private right of action, and companies have a 30-day right of appeal with respect to actions brought by the Attorney General. For more information, click here.
- On March 2, the Florida House of Representatives passed HB-9, a comprehensive privacy bill, with strong bipartisan support. This legislation is currently being considered by the Florida Senate, which must act quickly, as the 2022 legislative session in Florida ends on March 11. Among other things, this law would create a private right of action, under which consumers could seek $100 to $700 per incident. There is still great uncertainty about the future of this legislation, as the Senate considered a separate privacy bill that is significantly different from HB-9. For more information, click here.
- On March 1, the US Senate unanimously approved the Strengthening American Cybersecurity Act of 2022. This legislation would, among other things, require critical infrastructure entities (for example, energy, communications, transportation systems, etc.) to report certain cyber incidents to the Cybersecurity and Infrastructure Security Agency (CISA) within 72 hours. Additionally, under this legislation, cyber incidents involving ransomware payments should be reported within 24 hours. The legislation is now before the House of Representatives, where it is expected to be considered soon. For more information, click here.