Assembly Bill 376 enhances the existing Student Loan Servicing Act. Among many provisions, this law would impose new requirements on a student loan servicer: timely posting, processing, and crediting of student loan payments, applying overpayments consistent with the best financial interest of the borrower, and applying partial payments to minimize late fees and negative credit reporting. Effective July 1, 2021.
Governor Gavin Newsome signed a flurry of legislation on September 25, 2020. Assembly Bill 1864 renames the “Department of Business Oversight” as the “Department of Financial Protection and Innovation.” This renamed department will continue its previous mandate and oversee laws relating to financial products and services in California. In addition, this legislation enacts the California Consumer Financial Protection Law (“CCFPL”) to strengthen consumer protections. The new department has the power to bring administrative and civil actions, issue subpoenas, promulgate regulations, hold hearings, issue publications, conduct investigations, and implement outreach and education programs. Finally, this bill establishes a new Financial Technology Innovation Office. Effective January 1, 2021.
Assembly Bill 2196 extends the sunset date for the Pilot Program for Increased Access to Responsible Small Dollar Loans. Effective through January 1, 2028.
Assembly Bill 2524 would repeal prohibitions in the Check Sellers, Bill Payers and Proraters Law, which prohibit a person from engaging in these businesses without a license from the Commissioner of Business Oversight. Effective January 1, 2021.
Also signed on September 25, 2020, Assembly Bill 3254 requires a person engaged in a trade or business who negotiates primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean to deliver a translation of the contract in the language in which the agreement was negotiated before execution to the other party. Effective January 1, 2021.
Pursuant to the Georgia Administrative Code, the Georgia Department of Banking and Finance adopted Rules on August 19, 2020. Among various provisions, these rules cover License and Supervision Fees for various types of lenders; place of business, advertising, and other requirements; books and records requirements; standards regarding fines and penalties; licensing requirements; disclosure, charge, and debt collection restrictions. Specifically, the Rules require certain notices to consumers to be shown in the written loan agreement, including the number of payments, amount of payments, and due dates of payments. The Rules place restrictions on certain payment profiles, including limiting balloon payments, and requiring all other installment payments to be scheduled at regular intervals and in equal amounts. The Rules allow for monthly maintenance charges on installment loans, pursuant to O.C.G.A. Sec. 7-3-11, but require a refund if the consumer loan is terminated prior to its scheduled maturity date. The Rules further specify that maintenance charges are to be considered an additional charge and shall not be considered in the calculation of any interest, fees, or other charges. The Rules authorize closing fees, convenience fees, unaffiliated third-party fees, and late charges. Effective September 8, 2020.
Iowa released new regulations increasing the special annual registration fees for electric vehicles under IA ARC 5178C. The original legislation was enacted because fuel tax revenue is declining as average fuel efficiency increases and electric vehicles become more common. Effective January 1, 2021 and January 1, 2022, respectively.
Senate Bill 599 allows traditional installment loan lenders to charge a convenience fee or surcharge for payments made by a debit or credit card. Effective August 28, 2020.
Assembly Bill 2669 expands coverage of Service Contracts to leased motor vehicle for excess wear and use protection. This means leased vehicles are now covered under Service Contracts for damage to tires, paint cracks or chips, interior stains, rips, or scratches, exterior dents or scratches, windshield cracks or chips, missing interior or exterior parts, or excess mileage that results in a lease-end charge. In addition, all Service Contracts must now replace a motor vehicle key or key-fob in the event it becomes inoperable, lost, or stolen. Effective immediately.