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Florida SB 146, a bill that would add a “Predatory loan prevention” section to the Florida Consumer Finance Act has been introduced in the Florida Senate, seeking to curb bank-model lending programs and codify a “true lender” analysis with language similar to legislation enacted in Minnesota and other states within the past three years.… Continue Reading

The Connecticut Department of Banking (the “Department”) issued a guidance letter on September 11, 2023 (the “Guidance”) providing its position regarding the amendments to Connecticut’s Small Loan Lending and Related Activities Act (the “Act”) that become effective on October 1, 2023. We previously blogged about these amendments here.

The Department issued this guidance “to assist industry participants in evaluating the need for licensure and the effect of the various requirements under [the amended law].”… Continue Reading

To understand the regulatory requirements for cryptocurrency, one must first ask the question what is money.  This question is of paramount importance because the federal law definition of “money transmitting” depends in large part on state law definitions and regulator interpretations, and there is no uniform legislation that defines cryptocurrency as money for the purposes of state licensing requirements. … Continue Reading

Last year, Kentucky enacted the Student Education Loan Servicing, Licensing, and Protection Act of 2022 (the “Act”), which requires student loan services to be licensed in Kentucky.  The Act took effect on July 13, 2023 (the “Effective Date”). 

On the Effective Date, the Kentucky Department of Financial Institutions (“DFI”) released its new application checklist and made a license application available through the Nationwide Multistate Licensing System & Registry (“NMLS”). … Continue Reading

Nebraska Governor, Jim Pillen, signed into law Legislative Bill 92 on June 6, 2023, which amended the Nebraska Installment Loan Act (the “Act”) effective June 7, 2023 (the “Effective Date”).  As amended, the licensing requirement under the Act includes “any person that is not a financial institution who, at or after the time a loan [of $25,000 or less with rates exceeding the Nebraska general usury limit] is made by a financial institution, markets, owns in whole or in part, holds, acquires, services, or otherwise participates in such loan.” … Continue Reading

Minnesota recently enacted the Commerce Omnibus Finance Bill, which includes amendments to several provisions of Minnesota law related to consumer loans and financial institutions. 

Interest Rate Caps on Consumer Small Loans and Short-Term Loans

Minnesota laws related to consumer small loans and consumer short-term loans (as those terms are defined under Minnesota law) are amended to define the annual percentage rate (APR) for the covered loans to be an all-in rate including all fees and charges, as follows:

“Annual percentage rate” means a measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made. … Continue Reading

The Nevada Legislature recently passed Assembly Bill 332 (“AB 332”), which amends Nev. Rev. Stat. Title 55 relating to Banks and Related Organizations to add a new chapter regulating Private Education Lenders and Student Loan Servicers.  The provisions of SB 322 will become effective on January 1, 2024. 

AB 332 exempts the following entities from its requirements:

  • Banks;
  • Savings and loan associations;
  • Savings banks;
  • Thrift companies;
  • Credit unions;
  • The Nevada System of Higher Education;
  • The Western Interstate Commission for Higher Education; and
  • Any wholly owned subsidiaries of the above.
… Continue Reading

The Nevada Legislature recently passed Senate Bill 276 (“SB 276”), which permits employees of Collection Agencies to work from remote locations and exempts certain entities from qualifying as a “Collection Agency.”  The provisions of SB 276 relevant to Collection Agencies will become effective on October 1, 2023.

SB 276 amends Nev.… Continue Reading

Nevada’s Governor recently approved amendments to Nevada laws that concern the ability of employees of Installment Loan Company licensees to work from remote locations and the collection of medical debt.  The amendments become effective on October 1, 2023.

Senate Bill 355 (“SB 355”) permits employees of Installment Loan Company licensees to work from remote locations. … Continue Reading

On June 29, 2023, Connecticut’s Governor signed into law Substitute Senate Bill No. 1033 which makes significant changes to the state’s Small Loan Act.  The new law takes effect on October 1, 2023.

The primary changes are as follows:

New APR calculation (Section 1, subdivision (2), Revising 36a-555(2)).  Under the current law, the APR is calculated under the provisions of the federal Truth-in-Lending Act and associated regulations. … Continue Reading