The CFPB issued a proposal today that would extend by 60 days the effective date of Part I and Part II of its final debt collection rule issued in, respectively, October 2020 and December 2020. Comments on the proposal will be due no later than 30 days after the date it is published in the
COVID-19
Senate Banking Committee releases prepared statement of CFPB Director nominee Rohit Chopra
By Christopher J. Willis on
In advance of his confirmation hearing tomorrow, the Senate Banking Committee has released the prepared statement of Rohit Chopra, President Biden’s nominee for CFPB Director.
The brief statement highlights several areas on which Mr. Chopra is likely to focus his attention as CFPB Director. He raises concern about the financial difficulties faced by consumers as…
DFPI will look at COVID-19-related compliance in mortgage loan servicer exams
By Reid F. Herlihy on
In its February 2021 Bulletin, the California Department of Financial Protection and Innovation (DFPI) reminds licensed mortgage loan servicers that DFPI examinations will include processes to determine compliance with state and federal laws providing consumer protections with regard to COVID-19-related foreclosures. The DFPI notes that these laws “include provisions allowing for forbearance of mortgage…
Businesses Now Face ADA Risk Related to COVID-19 Mandatory Employee Mask-Wearing Policies
A class action lawsuit filed in September 2020 against Nike alleging that its policy requiring retail employees to wear Nike-branded, opaque masks discriminated against deaf and hard of hearing consumers under Title III of the Americans with Disabilities Act (“ADA”) deserves attention from retail banks and non-bank financial services companies with brick-and-mortar facilities open to…
CFPB issues Fall 2020 semi-annual report to Congress
By Christopher J. Willis on
The CFPB has issued its Fall 2020 Semi-Annual Report to Congress covering the period April 1, 2020 through September 30, 2020.
With Director Kraninger having submitted her resignation to President Biden last week, the report represents the CFPB’s fifth and final semi-annual report under Director Kraninger’s leadership. Somewhat ironically, although the prior four reports did…
CFPB issues special edition of Supervisory Highlights on COVID-19 prioritized assessments
The CFPB has issued “Supervisory Highlights COVID-19 Prioritized Assessments Special Edition.”
The report indicates that in May 2020, the Bureau rescheduled about half of its planned examinations and instead conducted prioritized assessments (PAs) in response to the COVID-19 pandemic. The Bureau describes PAs as “higher-level inquiries than traditional examinations [that are] designed to…
New COVID-19 Economic Relief Legislation Provides Exemption for Economic Impact Payments from Garnishment by Private Creditors and Debt Collectors
By Lori J. Sommerfield on
On December 21, Congress overwhelmingly passed a consolidated bill (H.R. 133) that contains $1.4 trillion in appropriations to keep the federal government funded until October 2021 and $900 billion in coronavirus economic relief. The latter is found in Division N of the lengthy bill (which runs over 5600 pages) entitled “Additional Coronavirus Response and Relief.”…
Department of Education extends pandemic-related benefits
By John L. Culhane, Jr. on
Without elaborating on its authority for doing so, the Department of Education recently announced the extension, through January 31, 2021, of certain pandemic-related benefits for federal student loan borrowers.
In particular, the administrative forbearance period, the 0% interest rate (pause in interest accrual), and the suspension of administrative wage garnishment and other collection activity will…
CFPB Private Education Loan Ombudsman issues annual report
By Bowen "Bo" Ranney on
The CFPB Private Education Loan Ombudsman has issued an annual report containing an analysis of approximately 5,000 federal student loan complaints, 1,900 private student loan complaints, and 1,700 debt collection complaints related to private or federal student loans submitted by consumers between September 1, 2019 and August 31, 2020. The report notes that total student…
Ballard Spahr attorneys author article on COVID-19’s effect on real-time payments
By Barbara S. Mishkin on
Among the unfortunate consequences of the pandemic has been COVID-19-related scams targeting businesses and consumers. As real-time payments (RTP) become more popular in the U.S., fraudsters can be expected to increasingly engage in fraudulent RTP transactions.
A new article titled “The Effect of COVID-19 on Real-Time Payments” written by Ballard Spahr Of Counsel Judy Mok…