Troutman Pepper Consumer Financial Services COVID-19 Weekly Bulletin – January 2022 #4 | Troutman pepper
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 January 21, the Federal Trade Commission (FTC) announced that it would mark the years 2022 Identity Theft Awareness Week (January 31-February 4) with a series of free events focusing on identity theft trends, including how to reduce the risk of identity theft and recovery if it happens. For more information, click here.
- On Jan. 20, the FTC issued an advisory opinion, stating that the incumbent rule does not prevent a plaintiff from recovering attorneys’ fees and costs from a “loan holder,” where another state law , local or federal authorizes collection as some courts. concluded incorrectly. The FTC issued the Holder’s Rule to allow consumers to bring any legal action against the “holder” of an installment retail contract or other credit agreement that they may have against the original seller of the good or service, even if the action arises from the sole fault of the seller. For more information, click here.
- On January 20, the Consumer Financial Protection Bureau (CFPB) announced that it would begin reviewing the operations of post-secondary schools, such as for-profit colleges, that provide private loans directly to students. The CFPB has also released an update to its review procedures, including a new section on institutional student loans. As CFPB Begins Oversight, Examination Procedures Inform Industry of Practices CFPB Examiners Will Examine, Including Imposition of Enrollment Restrictions, Withholding of Transcripts, Undue Expedition of Payments , failure to issue repayments and maintaining improper loan relationships. For more information, click here.
- On January 19, the FTC ordered more than 20 marketers nationwide to immediately stop making baseless claims that their products and supposed therapies can treat or prevent COVID-19. In cease-and-desist requests sent to these merchants, the agency noted that violators could face monetary penalties under the COVID-19 consumer protection law passed by Congress last year. . For more information, click here.
- On January 14, the CFPB announced that it has adjusted for inflation the maximum amount of each civil penalty under its jurisdiction. These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and amended by the Debt Collection Improvement Act of 2015. of the Federal Civil Penalties Inflation Adjustment Act. For more information, click on here.
- On January 21, North Carolina Attorney General Josh Stein issued a press release announcing victories in three price abuse lawsuits. “No matter the type of crisis – a pandemic, a storm, a gas pipeline shutdown – it’s illegal to try to make a quick buck by taking advantage of the desperation of the people of North Carolina,” said the Attorney General Stein. According to the press release, “North Carolina’s price gouging law is currently in effect related to both the coronavirus pandemic and winter storms.” For more information, click here.
- On January 20, Virginia Attorney General Jason Miyares joined a letter from 27 states, asking the Occupational Safety and Health Administration (OSHA) to withdraw its COVID-19 vaccine mandate for large employers. According to the Attorney General’s press release, the “letter follows a 6-3 decision by the United States Supreme Court last week, which temporarily halted the Biden administration’s OSHA vaccination mandate in response to a legal challenge brought by other state attorneys general in addition to business groups, non-profit organizations and private businesses.” Attorney General Miyares said, “The Supreme Court has been clear – the federal government is not has no power to force Virginians to choose between their jobs and the vaccine.” For more information, click here.
- On January 18, North Carolina Attorney General Josh Stein released a Annual Report, listing the top 10 consumer complaints filed by North Carolina residents with the North Carolina Department of Justice. The top three complaints for 2021 related to (1) telemarketing/robocalls; (2) utilities; and (3) credit cards. For more information, click here.
- On January 10, the Connecticut Banking Department revoked the license of a collection agency to collect in the state, while issuing a cease and desist order for not cooperating with the regulator and imposing a fined $100,000 for failing to provide requested information as part of an agency review. For more information, click here.
Privacy and cybersecurity activities:
- On January 18, the US Department of Health and Human Services released the “Trusted Exchange Framework” and “Common Agreement” (collectively “TEFCA”) for health information networks. The framework provides “a set of non-binding but fundamental principles for the exchange of health information”, and the common agreement “is a contract that advances these principles”. TEFCA will make it easier for participating entities to “engage in the exchange of health information across the country,” which includes health data related to the pandemic. Confidentiality and data security requirements are major elements of TEFCA. For example, the joint accord requires entities that provide individuals with access to their personal health information to “make publicly available a written privacy and security notice” that is “accessible and up-to-date at all times.” and is “written in plain language”. For more information, click here.
- On January 17, Mississippi Senator Angela Turner-Ford introduced the Mississippi Consumer Data Privacy Act (MCDPA). This comprehensive data privacy law closely resembles the California Consumer Privacy Act (CCPA) and would go into effect July 1, 2023. Similarities include requirements that companies engaging in the sale of data must refrain from such sales and display a “Do Not Sell” sign. My Personal Information” on their website. Unlike the CCPA, the MCDPA includes a private right of action for consumers. More than a dozen other privacy bills have been introduced in state legislatures this year. For more information on the MCDPA, click on here.