NEVADA FINANCIAL INSTITUTIONS DIVISION UPDATE

The State of Nevada Financial Institutions Division (“NFID”) would like to thank each one of its licensees for their patience and understanding during these unprecedented times and the willingness to adapt to these everchanging conditions.   NFID would like to advise collection agency licensees that they may operate their business while following all remaining Emergency Directives issued by Governor Sisolak, any guidance issued by any state agency, any Justice Court Orders for each jurisdiction, and comply with all applicable state and federal laws.

Good news for small businesses as Senate passes PPP reform bill

Business owners who received a forgivable loan through the Paycheck Protection Program are likely getting more leeway on how to spend those funds.  The Senate passed legislation Wednesday night that restructures how entrepreneurs can use loans issued through a new federal relief program for small businesses ailing from the economic contagion unleashed by the coronavirus pandemic. 

How States Are Supporting Student Loan Coronavirus Relief

While the Coronavirus Aid, Relief and Economic Security Act helps many federal student loan borrowers, it leaves out millions with privately held student loans. Now, several states are taking action to help people with this type of debt.

CFPB Issues Guidance Related to LIBOR Transition

The Consumer Financial Protection Bureau (CFPB) on Thursday issued several pieces of guidance related to the anticipated discontinuation of the London Interbank Offered Rate (LIBOR) index in 2021, in an effort to better facilitate creditors’ transition away from using LIBOR as an index for variable-rate consumer credit products.

California sues Education Secretary DeVos, saying she has failed to implement student loan forgiveness program

California is suing Education Secretary Betsy DeVos and the U.S. Department of Education for what the state alleges is a failure to implement its student loan forgiveness program for people who took on public-service jobs. “Today’s lawsuit reminds Secretary DeVos that she is not above the law,” California Attorney General Xavier Becerra said in a statement Wednesday. “She is accountable to these college graduates who followed the rules and deserve better, especially amidst an economic crisis of historic proportions.”

CRA Opportunity, Customer Service Opportunity, or Both?

The Board of Governors of the Federal Reserve System (Board) and the Consumer Financial Protection Bureau (CFPB) combined to issue four seemingly unrelated letters that, taken together, appear to reopen the ability of a bank to safely reenter the small dollar loan market as well as secure Community Reinvestment Act (CRA) credit in broadened areas. On May 20, 2020, the Board released the Interagency Lending Principles for Making Responsible Small Dollar Loans. 

This new ransomware targets Windows and Linux in surprising ways

Cybercriminals are always looking for new tricks and techniques to target potential victims without being caught. That's especially true of ransomware attackers who need to stealthily invade an organization's network to encrypt the sensitive files they plan to hold hostage. A new ransomware campaign known as Tycoon is using Java to hit Windows and Linux servers. A report released Thursday by the BlackBerry Research and Intelligence Team and KPMG's UK Cyber Response Services explains how this attack plays out.

US borrowers shun leveraged loan market as demand wanes

NEW YORK, June 4 (LPC) - Borrowers that have historically turned to the US leveraged loan market are instead looking to high-yield bonds to refinance existing loans as bank debt becomes more costly and hard to access while demand for the asset class drops.

FTC Staff Provides 2019 Annual Financial Acts Enforcement Report to the CFPB

The staff of the Federal Trade Commission has provided its 2019 Annual Financial Acts Enforcement Report to the Consumer Financial Protection Bureau on its enforcement and related activities regarding the Truth in Lending Act (TILA), Consumer Leasing Act (CLA), and Electronic Fund Transfer Act (EFTA).

Attorney General Frosh Urges the FCC to Help Law Enforcement Expose Illegal Robocallers

BALTIMORE, MD (June 4, 2020) – Maryland Attorney General Brian E. Frosh, along with the State Attorneys General Robocall Working Group, today encouraged the Federal Communications Commission (FCC) to facilitate continued collaboration among state attorneys general and telecom companies to coordinate tracing back illegal robocalls to their source.

PSCU Partners with Telrock to Offer Next-Generation Delinquency Management Software Platform

St. Petersburg, Fla. — (June 4, 2020) — PSCU, the nation’s premier payments credit union service organization (CUSO), announced it has entered into an agreement with Telrock to offer its cloud-based collection and recovery software platform, Optimus, to PSCU Owners and other credit unions to improve their overall delinquent account management performance.

Senate OKs tweaks to small-business lending program; bill goes to Trump for signature

It took some last-minute wrangling and a letter as well, but the Senate late Wednesday passed a bill easing conditions for small businesses tapping the government’s Paycheck Protection Program. The House had passed the bill by an overwhelming 417-1 tally last week and senators had been discussing earlier in the week whether to make a few tweaks to it — which would have necessitated another House vote — or passing it unanimously and finding ways to fix what some saw as problems later.

The Fed’s Main Street Lending Program is About to Begin; Here’s What You Need to Know

The Federal Reserve's unprecedented Main Street Lending Program (MSLP) is set to kick off any day now. The program is designed to provide financial support to companies that have been hurt by the coronavirus pandemic but were too big to qualify for loans in the Paycheck Protection Program (PPP).

3 Billion Robocalls in May Mark 3% Monthly Increase, Says YouMail Robocall Index

IRVINE, Calif., June 4, 2020 /PRNewswire/ -- Americans received just under 3.0 billion robocalls in May, a 3% increase from April. However, the number of calls per day in May was almost identical to the number of calls per day in April, again averaging just over 95 million calls per day, or roughly 1,104 calls per second. This means the slight increase was simply due to one more day in the month of May versus April. The calls are still 48% below the all-time monthly peak of 5.7 billion calls in October 2019.

Consumer Financial Protection Bureau Takes Action to Help Consumers Receive Relief from Credit Card Issuers

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today took action to help consumers receive relief during the pandemic more quickly from their credit card issuer. Regulation Z requires that creditors provide written disclosures to consumers for account-opening and temporary rate or fee reduction.

How PayPal’s Case Against the CFPB Could Spawn ‘Uncomfortable’ Results for Payments Players

It was easy to lose track of it in the midst of all the impacts of the novel coronavirus, but a crucial federal lawsuit filed six months ago still hangs over the payments industry, carrying far-reaching implications for nearly all players. It’s PayPal Holdings Inc.’s  action against the Consumer Financial Protection Agency over the CFPB’s final prepaid rule, and while it very much hasn’t gone away, some experts are worried its eventual resolution could hold very different implications from those they were expecting before PayPal brought its suit.

Two Banking Groups Call For Automatic PPP Loan Forgiveness

The Consumer Bankers Association and Bank Policy Institute, in a co-signed letter, have called on Congress to automatically forgive Paycheck Protection Program (PPP) loans under $150,000. Although that would cover around 85 percent of the loans, it would only cover about 26 percent of PPP loan dollars, the two groups said. Businesses would still be required to verify that their PPP funds were used in the correct ways the program mandated, to keep employees on the payroll. But they would not have to fill out lengthy forgiveness applications, which would save them time and money.

Attorney General Becerra Sues Secretary DeVos and U.S. Department of Education for Failing to Implement Temporary Expanded Public Service Loan Forgiveness Program

California Attorney General Xavier Becerra today announced a lawsuit against Secretary of Education Betsy DeVos and the U.S. Department of Education (ED) for its failure to implement the Temporary Expanded Public Service Loan Forgiveness (TEPSLF) program. While many of the program's applicants have completed the public service and loan payment requirements necessary to qualify for forgiveness of the balance on their federal student loans, nearly all of them have had their applications denied by Secretary DeVos. In the complaint, Attorney General Becerra alleges that ED’s failure to implement the TEPSLF program violates the Administrative Procedure Act (APA).

Path to the New Normal: Reimagining Collections – Webinar Announced

Join Josh Weiss with Brinks Home Security and Todd Johnsen with Snap Finance as they discuss:

Webinar Details:

Title: Path to the New Normal: Reimagining Collections

Date: Thursday, June 11, 2020

Time: 12:00 PM Eastern Daylight Time (30 minutes)

Registration page:  https://tinyurl.com/y75ssyrx

WEBINAR: The Inception and Evolution of the Telemarking Sales Rule (TSR) in the Debt Relief and Credit Repair Industries

Felix Shipkevich and Bianca Petcu of Shipkevich PLLC will host a two-part webinar to discuss the legal and regulatory evolutions of the U.S. FTC’s Telemarking Sales Rule (TSR). This webinar will discuss the regulatory scope of the TSR and its enforcement application by the FTC and CFPB. We will also discuss the TSR’s application and allegations made in recent CFPB enforcement actions against certain credit repair companies.

How lenders are preparing for a wave of loan modifications

For the first weeks of the coronavirus crisis, mortgage servicers were in triage mode. As the government issued a flurry of measures to deal with financial hardships resulting from widespread economic shutdown, servicers rushed to grant the CARES Act mandated forbearances for GSE conforming loans. But as the growth rate in forbearances has slowed, lenders are gaming out their plans for the moment when the 12-month forbearance period ends, puzzling over how to prepare themselves for what may come next.

Student loan rates are heading for historic lows — here’s what it will mean for your payments

College students this fall will experience a historic moment and for positive reasons. Starting in July, students taking out federal loans to pay for college will have access to the lowest interest rates in history.  Mark Kantrowitz, vice president of research at Savingforcollege.com, said the new rates will save borrowers thousands of dollars over the life of an average loan. Unfortunately, the terms only apply to future borrowers but there are still ways for people with existing loans to benefit, according to Kantrowitz.

California sues Education Secretary DeVos for ‘failing’ to implement student loan forgiveness program

California is suing Education Secretary Betsy DeVos and the U.S. Department of Education for what the state alleges is a failure to implement its student loan forgiveness program for people who took on public-service jobs. “Today’s lawsuit reminds Secretary DeVos that she is not above the law,” California Attorney General Xavier Becerra said in a statement Wednesday.

Fed’s massive ‘Main Street’ business rescue in danger of fizzling

A $600 billion Federal Reserve loan program designed to offer a lifeline to tens of thousands of struggling U.S. companies is heading for trouble before it even gets under way. Some potential borrowers complain that the "Main Street" lending program — so named because it's aimed at helping midsize companies hit hard by the coronavirus crisis — imposes interest rates that are too high and requires businesses to pay back loans too quickly.

Wells Fargo stops giving loans to most independent car dealerships

(Reuters) - Wells Fargo & Co will stop providing loans to a majority of its independent auto dealer customers due to the economic challenges brought on by the COVID-19 pandemic, a spokeswoman said on Tuesday. “We are doing everything we can to help customers weather the economic impacts of this health crisis ... we also have an obligation to review our business practices in light of the economic uncertainty presented by COVID-19,” the spokeswoman said in an email.

Big banks call for blanket forgiveness of PPP loans under $150,000

Two bank lobbying organizations asked Congress on Tuesday to automatically forgive small-business loans of less than $150,000 that are made under the Paycheck Protection Program. The request comes as the Senate eyes potential changes to the massive emergency relief effort. Last week, the House of Representatives passed legislation that would make it easier for small businesses to get their PPP loans forgiven. One of its provisions would extend the period of time in which companies must use the funds in order to qualify for forgiveness.

OCC Issues Final “Valid-When-Made” Rule: Does it End the Madness of Madden v. Midland Funding?

Last Friday, the Office of the Comptroller of the Currency (“OCC”) issued a final rule providing that interest rates established on debt originated by a national bank remain valid even after the debt is transferred to a nonbank entity, including a third-party debt purchaser. The move was an answer to the case of Madden v. Midland Funding, LLC, 786 F.3d 246 (2d Cir. 2015) where the U.S. Court of Appeals for the Second Circuit held that a purchaser of a loan originated by a national bank was not entitled to the interest rate protections afforded under the National Bank Act (“NBA”). Specifically, the NBA permits a bank to charge interest at the highest rate allowed by the state where the bank is located and to export this rate to borrowers in other states. Given the Second Circuit’s narrow focus on the NBA to banks rather than non-banks, it remains to be seen whether the OCC’s rule will survive judicial scrutiny. However, the rule certainly is a step towards restoring certainty to the financial services industry following the confusion left by Madden.

Consumer Financial Protection Bureau Settles with Short-term Lenders for Engaging in Unfair and Deceptive Acts and Practices

WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (Bureau) announced a settlement with Main Street Personal Finance, Inc. and its subsidiaries—ACAC, Inc., which conducts business under the name Approved Cash Advance, and Quik Lend, Inc.—(collectively, Approved Cash). The companies, which are based in Cleveland, Tennessee, offer payday and auto-title loans and own and operate about 156 stores in eight different states: Alabama, Louisiana, Michigan, Mississippi, Oklahoma, South Carolina, Tennessee, and Virginia.

Attorney General Becerra Submits Proposed Regulations for Approval Under the California Consumer Privacy Act

SACRAMENTO – California Attorney General Xavier Becerra submitted proposed regulations under the California Consumer Privacy Act (CCPA) to the California Office of Administrative Law (OAL). The regulations will provide guidance to businesses on how to comply with the CCPA and will enable consumers to exercise new rights over their personal information. Under Executive Order N-40-20 related to the COVID-19 pandemic, OAL has 30 working days and an additional 60 calendar days to determine whether the regulations satisfy the procedural requirements of the Administrative Procedure Act. Once approved by the OAL, the regulation text will be filed with the Secretary of State and become enforceable by law.

Banks have a mountain of deposits, so they don’t need PPP funding

A record surge in bank deposits has given U.S. lenders more cash than they know what to do with. One thing they don’t need: help from the Federal Reserve to fund the government-backed loans they made to small businesses. Banks had tapped only $49 billion from the Paycheck Protection Program Liquidity Facility by May 27 as they loaned $511 billion, according to the central bank and the U.S. Small Business Administration. That’s largely because lenders are sitting on $1.8 trillion of new deposits that have flooded in since March 11 — a 13% increase, and the biggest two-month jump since at least 1973, when comparable data is available.

Older crowd embraces online banking, rewards firms’ digital push

It took a global pandemic to get many baby boomers to bank online. Lenders have taken notice. Over the past two months, Americans flocked to websites and apps to manage their finances as the coronavirus limited access to branches, according industry executives. For JPMorgan Chase, existing online clients are using the offerings more frequently, while Bank of America found that older customers are seeking out its digital services.

Nevada Extends Prohibitions on Instate Collections

The Nevada Financial Institutions Division (NFID) has extended prohibitions on instate collections for licensees until June 30, 2020.

Brian Brooks takes over as Comptroller of the Currency, lays out plans for banking regulator

Just two months after joining the Office of the Comptroller of the Currency as chief operating officer and first deputy comptroller, Brian Brooks has now ascended to the top job at the banking regulator. On Friday, Brooks officially became the acting comptroller of the currency when Joseph Otting stepped down from the role. Otting announced his departure last week, just one day after the OCC released its final rule on “strengthening and modernizing” the CRA, which requires banks to meet the credit needs of all communities they serve, including low- and moderate-income neighborhoods.

Powell says the Fed is ‘days away’ from making the first loans in the Main Street lending facility

Federal Reserve Chairman Jerome Powell said Friday the central bank’s long-awaited program to lend to small- and medium-sized businesses is about to get off the ground. The Main Street lending facility, which will target companies with up to 15,000 employees, has been difficult to set up but is just about ready, Powell told Princeton University economist and former Fed official Alan Blinder in a webinar interview.

I’m reading the CFPB’s mail about the pandemic’s effect on family finances

I’ve been reading the CFPB’s mail. It’s okay, you can too. It’s public. Not surprisingly, the latest CFPB consumer complaints paint a grim picture of the pandemic’s effect on family finances. I ask: Why isn’t the CFPB doing more to help the struggling consumers it was designed to help? The CFPB itself has reported that complaint volume set new records in March, then again in April. This weekend, I looked at some of the 91,081 complaints posted since March 1.

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WEBINAR: The Inception and Evolution of the Telemarking Sales Rule (TSR) in the Debt Relief and Credit Repair Industries

Felix Shipkevich and Bianca Petcu of Shipkevich PLLC

Digital Banking 2020 – Postponed to December 7 – 9

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NACTT 55th Annual Seminar 2020

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RMAi EXECUTIVE SUMMIT 2020

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Debt Connection Symposium & Expo 2020

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