Troutman Pepper Consumer Financial Services COVID-19 Weekly Bulletin – December 2021 # 2 | Man’s pepper with trout

[co-author: Robyn Lin]

Like most industries today, consumer finance service companies are significantly affected by the novel coronavirus (COVID-19). Troutman Pepper has developed a COVID-19 Resource Center to guide clients through this unprecedented global health challenge. We regularly update this site with COVID-19 news and developments, recommendations from leading healthcare organizations, and tools businesses can use for free.

To help you stay on top of 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 fundraising services industry. consumption last week:

Federal activities

State activities

Privacy and cybersecurity activities

Federal activities:

  • On December 9, the Federal Deposit Insurance Corp. (FDIC) chided a move by its Democratic members seeking public comment on how the agency is analyzing potential bank mergers. The FDIC said the board did not vote or approve the post and were not seeking comments or information. For more information, click on here.
  • On December 8, U.S. Senators John Thune and Ed Markey, authors of the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, introduced the Robocall Trace Back Enhancement Act, which would help bolster private efforts to trace the origins of robocalls. . For more information, click on here.
  • On December 8, the Consumer Financial Protection Bureau (CFPB) released a report on surveillance highlights on violations of the law identified by CFPB reviews in the first half of 2021. The report also highlights evidence previous CFPB surveillance findings which led to public enforcement actions in the first half of the year. from 2021. For more information, click on here.
  • On December 7, the CFPB finalized a rule to ease the transition from the LIBOR interest rate index for consumer financial products. The rule establishes requirements on how creditors should select replacement indices for existing consumer loans linked to LIBOR after April 1, 2022. No new financial contract may reference LIBOR as the relevant index after the end of the period. 2021. As of June 2023, LIBOR can no longer be used for existing financial contracts. The LIBOR drop was sparked after a criminal rate-fixing plot implicated major international banks and undermined public confidence in the index. It is estimated that approximately $ 1.4 trillion in consumer loans is currently tied to LIBOR. For more information, click on here.
  • On December 7, the United States Department of Housing and Urban Development released guidance on the Fair Housing Act treatment of certain special purpose credit programs designed and implemented in accordance with the Equal Credit Opportunity Act and Regulation B For more information, click on here.
  • On December 6, the Office of the Comptroller of the Currency warned of high operational risks resulting from increasingly ‘brazen’ cyber attacks and ransomware programs, urging banks to use the latest fintech security measures and backups system to protect customer data. For more information, click on here.

State activities:

  • On December 6, Nebraska Attorney General Doug Peterson announced the creation of a Consumer Response Team (CART) for state residents against fraud, scams and deceptive marketing practices. For more information, click on here.
  • On December 6, the American Bankers Association, the American Financial Services Association, the California Financial Services Association and the Consumer Bankers Association filed a joint amicus brief with the California Supreme Court in Pulliam v. HNL Automotive Inc., a case with significant implications for the amount of money a claimant can recover in proceedings against a dealer / seller under the FTC Holder Rule. For more information, click on here.

Privacy and cybersecurity activities:

  • On December 9, the New York Department of Financial Services (NYDFS) released new guidance addressing whether covered entities should implement a cyber assessment framework (e.g., NIST’s Cyber ​​Security Framework, the FFIEC e-assessment tool, etc.) as part of their risk assessment process. These risk assessments are required under Sections 500.9 and 500.2 (b) of the NYDFS Cyber ​​Security Policy. In this brief update to the guidelines, the NYDFS states that it “does not require a specific standard or framework to be used in the risk assessment process” and that entities should “implement a framework and methodology that best suits their risk and their operation “. For more information click here.
  • On December 9, the National Institute of Standards and Technology (NIST) released an updated version of its guide “Developing Cyber-Resilient Systems: A Systems Security Engineering Approach” (NIST Special Publication 800-160). This guide is intended to help organizations “anticipate, resist, recover and adapt to adverse conditions, stresses and compromises on systems”. In the accompanying press release, NIST notes that this latest release offers “important new content and support tools for organizations to defend against cyber attacks.” Prioritizing cyber resilience has been especially important during the pandemic as many companies have been forced to implement and rely on new systems / software for remote working. For more information on this guide, click here.
  • On December 9, Senators Chris Coons (D-DE), Rob Portman (R-OH) and Amy Klobuchar (D-MN) announced the release of the Platform Accountability and Transparency Act (PATA). Under the bill, social media companies would be required to provide internal data on their platforms to researchers affiliated with universities for research projects approved by the National Science Foundation. It would also expand the authority of the Federal Trade Commission (FTC) to “require platforms to proactively make certain information available to researchers or the public on an ongoing basis, such as a comprehensive ad library containing targeting information and user engagement ”. In addition, under PATA, a new “Platform Accountability and Transparency Office” would be established within the FTC. This office would create guarantees of confidentiality and cybersecurity for the use of data provided under PATA. A full version of this legislation is available here.

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