Troutman Pepper Weekly Shopper Monetary Companies Publication – November 2023 # 3 | Troutman Pepper

Troutman Pepper Weekly Shopper Monetary Companies Publication – November 2023 # 3 | Troutman Pepper

To maintain you knowledgeable of current actions, under are a number of of probably the most vital federal and state occasions which have influenced the Shopper Monetary Companies business over the previous week:

Federal Actions

State Actions

Federal Actions:

  • On November 20, the Federal Reserve’s Vice Chair for Supervision Michael Barr issued remarks on the Clearing Home Convention as a part of a question-and-answer session that coated funds priorities, digital property, regulatory approaches, and financial coverage. Barr expects FedNow and real-time funds to co-exist, with banks selecting which rail to route funds by way of. He additionally mentioned the Federal Reserve’s supervision program, which he thinks will present readability on banks that interact in crypto initiatives. For extra data, click on right here.
  • On November 20, the Federal Commerce Fee (FTC) introduced that it’s sending a second spherical of funds totaling greater than $857,000 to shoppers who have been harmed by Napleton Automotive Group’s junk charges and discriminatory practices. The FTC and the State of Illinois sued Napleton Automotive Group in March 2022, alleging that Napleton workers have been sneaking unlawful junk charges for undesirable “add-ons” onto automobile purchases and discriminating in opposition to Black shoppers. In line with the joint criticism, eight of the corporate’s dealerships illegally tacked on junk charges for undesirable “add-on” merchandise similar to fee insurance coverage and paint safety, costing shoppers a whole bunch and even hundreds of {dollars}. The criticism additionally alleged that Napleton discriminated in opposition to Black shoppers by charging them extra for add-ons and financing. For extra data, click on right here.
  • On November 17, the Worldwide Group of Securities Commissions finalized its suggestions for crypto regulatory frameworks in a report. In doing so, the group goals to coordinate a world regulatory response to the investor safety and market integrity dangers created by centralized crypto asset intermediaries. The framework seeks to deal with conflicts of curiosity when crytpo asset service suppliers mix features, in addition to once they listing tokens wherein they’ve a monetary curiosity in. The report additionally recommends that service suppliers present market surveillance measures. For extra data, click on right here.
  • On November 16, the Shopper Monetary Safety Bureau (CFPB) printed its Truthful Debt Assortment Practices Act (FDCPA) Annual Report back to Congress. The report highlights shopper safety points in medical debt assortment. Per the CFPB’s report, the commonest subject raised in debt assortment complaints — throughout all varieties of debt — is the try to gather debt that the patron doesn’t owe. Complaints about debt that isn’t owed represented about half of the complaints, the place corporations responded with an evidence or reduction concerning medical payments and collections. The CFPB additionally experiences that folks generally reported {that a} medical invoice being collected had already been paid or ought to have been paid by another person; medical payments are collected lengthy after providers have been offered; and medical payments that sufferers haven’t any prior data of seem on their credit score experiences. To conclude the CFPB’s report highlighting points with medical debt, it acknowledged: “The CFPB intends to assemble extra data and take additional motion the place warranted about these points, together with to work with states to train their authorities to guard shoppers.” For extra data, click on right here.
  • On November 16, the FTC offered the CFPB with its annual abstract of actions to guard shoppers within the debt assortment enviornment. Within the abstract, the fee highlighted its multifaceted work overlaying the debt assortment market to guard shoppers and small companies. The abstract is utilized by CFPB in its annual report back to Congress on the actions of each companies, who share legislation enforcement duty on this space. For extra data, click on right here.
  • On November 16, CFPB Director Rohit Chopra issued an announcement on the Deposit Insurance coverage Fund Restoration Plan and Designated Reserve Ratio. Chopra burdened his perception that there’s a want for cautious board oversight. For extra data, click on right here.
  • On November 16, the Justice Division, in shut coordination with the Division of Training, introduced a profitable first 12 months of the brand new course of for dealing with instances wherein people search to discharge their federal pupil loans in chapter. For extra data, click on right here.
  • On November 15, the CFPB’s Truthful Credit score Reporting Act (FCRA) Disclosures rule was printed within the Federal Register. The CFPB’s rule amends an appendix for Regulation V, which implements the FCRA. The CFPB is required to calculate yearly the greenback quantity of the utmost allowable cost for disclosures by a shopper reporting company to a shopper pursuant to Part 609 of the FCRA; this closing rule establishes the utmost allowable cost for the 2024 calendar 12 months. The CFPB is amending Appendix O to Regulation V, which implements the FCRA, to ascertain the utmost allowable cost for disclosures by a shopper reporting company to a shopper for 2024. The utmost allowable cost can be $15.50 for 2024. For extra data, click on right here.
  • On November 15, the CFPB launched its Language Entry Plan. The Language Entry Plan describes the CFPB’s coverage and the way the CFPB’s language entry actions are applied throughout operations, packages, and providers, and their applicability to all employees, notably those that have contact with the general public. For extra data, click on right here.
  • On November 15, members of Congress clashed over the extent to which cryptocurrency is utilized in illicit finance, throughout a Home Digital Asset Subcommittee listening to. The conflict occurred alongside social gathering traces. Republicans disputed the extent to which cryptocurrency is used illicitly within the wake of a information report that Hamas depends on it to finance its operations. Democrats cited the opacity of off-chain transactions in return. The unclarity surrounding the expertise prompted the subcommittee to ship a bipartisan letter to President Biden and Treasury Secretary Janet Yellen, asking them to supply detailed data on digital asset fundraising, accounts, and transfers by Hamas. For extra data, click on right here.
  • On November 15, the New York State Division of Monetary Companies (DFS) issued new steering, introducing enhanced necessities for coin-listing and delisting insurance policies of DFS-regulated digital foreign money entities. The brand new steering strengthens threat evaluation requirements for coin-listing insurance policies and introduces enhanced necessities particularly for retail consumer-facing companies. Moreover, the steering mandates licensees to develop and submit a coin-delisting coverage to DFS for approval. This coverage should adjust to the brand new steering and be certain that any coin delisting happens in an orderly method that protects shoppers and minimizes market disruption. For extra data, click on right here.
  • On November 14, the Senate Committee on Banking, Housing, and City Affairs held a listening to the place regulators, Fed Vice Chair for Supervision Michael Barr, FDIC Chair Martin Gruenberg, NCUA Chair Todd Harper, and performing Comptroller of Foreign money Michael Hsu, testified concerning the Basel III Endgame proposal. For extra data, click on right here.
  • On November 14, the Federal Housing Administration (FHA) introduced it has elevated the allowable property inspection charge limits for property inspections of single-family properties related to defaulted FHA-insured mortgages. For extra data, click on right here.
  • On November 13, the CFPB, the Federal Reserve Board, and the Workplace of the Comptroller of the Foreign money introduced that the 2024 threshold for whether or not higher-priced mortgage loans are topic to particular appraisal necessities will improve from $31,000 to $32,400. For extra data, click on right here.
  • On November 10, the Federal Reserve launched its biannual Supervision and Regulation Report, which covers banking system situations, regulatory developments, and supervisory developments. For extra data, click on right here.
  • On November 9, the FHA introduced it has posted a proposed replace to its Residence Fairness Conversion Mortgage (HECM) task claims eligibility coverage for business suggestions. The proposal permits sure classes of due and payable HECMs that have been beforehand ineligible for task to be assigned to HUD, enabling servicers to acquire earlier decision of those loans by way of HUD’s task claims course of. This modification will help servicer liquidity and strengthen the HECM marketplace for senior householders who use a HECM to age in place. For extra data, click on right here.

State Actions:

  • On November 20, District of Columbia Legal professional Normal Brian Schwalb filed a lawsuit in opposition to a pre-sale residence renovation firm. In line with the lawsuit, the corporate violated the district’s shopper safety legal guidelines by partaking in scheme of deception, intimidation, and fraud, leading to a number of aged and financially deprived residents being locked into unconscionable contracts. The criticism seeks to get better monetary penalties and financial damages and prevents the corporate from partaking in any future fraudulent conduct that exploits the district’s residents. For extra data, click on right here.
  • On November 16, state securities regulators in Texas, California, Alabama, Wisconsin, and Canada launched cease-and-desist orders in opposition to GSB Gold Commonplace Financial institution Ltd. The group allegedly used multilevel advertising and purported athlete endorsements to advertise certificates tied to digital property — certificates, which regulators claimed constituted funding contracts. The orders from every respective state typically focused the group’s promoting practices and sale of the certificate-securities. For extra data, click on right here.
  • On November 15, the New York State DFS issued new steering, introducing enhanced necessities for coin-listing and delisting insurance policies of DFS-regulated digital foreign money entities. The brand new steering strengthens threat evaluation requirements for coin-listing insurance policies and introduces enhanced necessities particularly for retail consumer-facing companies. Moreover, the steering mandates licensees to develop and submit a coin-delisting coverage to DFS for approval. This coverage should adjust to the brand new steering and be certain that any coin delisting happens in an orderly method that protects shoppers and minimizes market disruption. For extra data, click on right here.
  • On November 14, Pennsylvania Legal professional Normal Michelle Henry introduced that her workplace had filed a lawsuit in opposition to a landlord over its alleged illegal leasing and debt assortment practices. The lawsuit alleges that the owner inflated sure safety deposit costs by 50%, in violation of the Landlord and Tenant Act. Below the legislation, safety deposit costs are restricted to the “precise quantity of damages” to the rental unit. The swimsuit additional alleges that, after shoppers moved out, the owner despatched assortment letters to shoppers illegally threatening to take motion if the patron didn’t submit fee inside 15 days. The swimsuit seeks civil penalties and restitution, together with refunds of inflated safety deposit costs, and prohibits the corporate from unlawful leasing and debt assortment practices. For extra data, click on right here.

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