Compliance Alerts

February 2021

 

Effective State Changes  

 

MASSACHUSETTS

On January 14, 2021, the Massachusetts Governor signed H5250 into law. Among various other requirements, the bill added a requirement that student loan servicers must be licensed in the state. Effective July 1, 2021.

 

MICHIGAN

The Michigan Department of Insurance and Financial Services issued Bulletin 2021-04-CF on January 15, 2021. This Bulletin adjusted the documentary preparation fee cap to $230. The fee is the lesser of $230 or 5% of the cash price of the motor vehicle. Effective immediately.

 

NEW YORK

On December 23, 2020, Governor Cuomo signed into law A10118-A/ S05470B which requires certain disclosures for commercial financing transactions. There are a variety of disclosure requirements, among them is the requirement to disclose an Annual Percentage Rate (“APR”) calculated in accordance with the Truth in Lending Act and Regulation Z. Effective June 21, 2021.

 

PENNSYLVANIA

Pennsylvania’s maximum allowed document preparation fee depends on whether the motor vehicle dealer provides electronic services for registration, title, license, and tax documents. The fee is adjusted annually subject to increases in the Federal Consumer Price Index. The maximum fee for 2021 has been risen to either $328 or $394, with the latter applying to electronically filed documents. Effective January 1, 2021.

 

WEST VIRGINIA

Following the meeting of the West Virginia Dealer Advisory Board on December 17, 2020, the Commissioner of West Virginia’s Department of Transportation’s Division of Motor Vehicles raised the amount a motor vehicle dealer could charge for documentary fee to $499. Effective immediately.

 

Effective Federal Changes     

 

CONSUMER FINANCIAL PROTECTION BUREAU

On January 20, 2021, Director Kathleen Kraninger resigned as the Director of the CFPB at the request of President Joe Biden’s Administration. President Biden has nominated FTC Commissioner Rohit Chopra as the next director of the bureau. Chopra had previously served as the assistant director at the CFPB where he focused on student lending. Currently, Daniel Ueijo is the Acting Director until Mr. Chopra’s nomination is confirmed by the U.S. Senate.