Compliance Alerts

JANUARY 2022

 

Review of State Changes Effective in 2021

 

ARIZONA

HB 2721 required Arizona motor vehicle dealers to disclose any Document Fee they charge in advertisements. Effective September 28, 2021.

SB 1463 made technical changes and established new fees for Premium Finance Companies and Advance Fee Loan Brokers. Effective retroactively to June 30, 2020.

 

ARKANSAS

HB 1893 exempted certain electric and hybrid vehicles from registration fees. Effective retroactively to October 1, 2019.

 

CALIFORNIA

AB 1864 enacted the California Consumer Financial Protection Law. Effective January 1, 2021.

 

COLORADO

SB 21-076 imposed a per-transaction fee up to $3, set by the Department of Revenue, on third-party providers to issue titles, registrations, and liens. Effective July 7, 2021.

 

CONNECTICUT

HB 6100 modernized the motor vehicle Lemon Law. Effective October 1, 2021.

 

FLORIDA

SB 50 required internet marketplace providers and persons outside of Florida to remit discretionary sales surtax. Effective, in part, on July 1, 2021.

 

GEORGIA

HB 111 clarified language around credit unions and banks and established the right for a hardship or convenience deferment of an installment loan. Effective July 1, 2021.

 

HAWAII

HB 1192 created a new small dollar installment loan scheme for loans up to $1,500. Bill effective July 1, 2021; licensing requirements effective January 1, 2022.

 

ILLINOIS

The State of Illinois increased its document preparation fee to $303.60. Effective January 1, 2021.

SB 1792 a maximum charge of 36% APR computed like the MAPR for consumer loans, motor vehicle sales, and retail installment sales. Effective March 23, 2021.

 

INDIANA

Indiana published dollar adjustments under the consumer credit code for sales, supervised loans, and small loans. Effective January 1, 2021 – December 31, 2023.

 

IOWA

HF 235 removed requirements to collect a service charge for loans and also prohibited a creditor from collecting a minimum charge upon prepayment. Effective July 1, 2021.

 

LOUISIANA

SB 67 raised the Documentary Service Fee for the sale of a motor vehicle from $200 to $425. Effective August 1, 2021.

 

MAINE

LD 522 granted to Maine consumers the right to void a loan that is fraudulently procured under Maine finance law. Effective June 28, 2021.

 

MARYLAND

SB 281 extended the statutory and regulatory authority of Office of the Commissioner of Financial Regulation’s through July 1, 2032. Effective April 13, 2021.

 

MICHIGAN

Bulletin 2021-04 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 January 15, 2021.

 

MISSISSIPPI

HB 1075 reenacted the Mississippi Credit Availability Act through July 2026. Effective July 1, 2021.

 

NEBRASKA

LB 363 defined licensing requirements for sales financing companies who offer installment sales contracts. Effective immediately, March 17, 2021.

 

NEW HAMPSHIRE

HB 610 required retail sellers, sale finance companies, small loan lenders, debt adjusters, and money transmitters to license with the NMLS. Effective October 9, 2021.

 

NEW YORK

A10118-A/ S05470B required certain disclosures for commercial financing transactions. Effective June 21, 2021. (Effective date updated to January 1, 2022 per SB 898.)

 

NORTH DAKOTA

SB 2103 amended money broker loan charges, expanded licensing exemptions, and changed deferred presentment service transaction procedures. Effective August 1, 2021.

 

OKLAHOMA

The Department of Consumer Credit published the changes in dollar brackets for §2-201, § 3-508(B). The dollar amounts for § 3-508(A) are the same. Effective July 1, 2021.

SB 796 amended the Oklahoma Uniform Commercial Code, specifically changing the brackets, rates, and ceilings of Section 3-508A. Effective November 1, 2021.

 

PENNSYLVANIA

Pennsylvania’s maximum allowed document preparation fee for 2021 is either $328 or $394 (if electronically filed). Effective January 1, 2021.

 

SOUTH CAROLINA

Orders 2020-03, 2020-04, and 2020-05 confirmed Prima Facie Credit A&H and Credit Property rates for 2021. Effective January 1, 2021 – December 31, 2021.

 

SOUTH DAKOTA

SB 8 defined supervised banks, credit unions, foreign banks, and trusts as subject to examination and enforcement. Effective July 1, 2021.

 

TENNESSEE

HB 421 increased fees and added new fees an industrial loan entity may charge under Tennessee law. Effective July 1, 2021.

 

TEXAS

The Texas OCCC released the dollar brackets and ceilings for Consumer Loans and Retail Installment Sales. Effective July 1, 2021.

 

VIRGINIA

HB 789 set a maximum interest rate of 36% for Installment Loans, Open-End Credit Plans, Short Term Lenders, and Motor Vehicle Title Loans. Effective January 1, 2021.

 

WISCONSIN

Revised Prima Facie Credit Life and Credit Accident and Sickness Insurance rates were released on October 15, 2020. Effective January 1, 2021 – December 31, 2024.

 

WYOMING

HB 8 capped a consumer loan finance charge at 36% per year on the principal that is equal or less than $1,000, and 21% on the principal above $1,000. Effective July 1, 2021.

 

Review of State Changes Effective in 2022 & 2023

 

ARKANSAS

SB 225 updates registration fees for plug-in electric vehicle to $100 and hybrid electric vehicle to $50. Effective January 1, 2022.

HB 1042 repeals the long-term rental vehicle excise tax. Effective January 13, 2022.

SB 184 repeals the Arkansas Pawnbroker Act. Effective January 13, 2022.

HB 1912 provides a reduced sales and use tax rate for certain used motor vehicles, trailers, and semitrailers. Effective January 1, 2022.

 

CALIFORNIA

SB 908 enacts the Debt Collection Act (“DCLA”). Effective January 1, 2022.

AB 1221 specifies that a service contract may be offered on a month-to-month or other periodic basis and continued until canceled by the buyer. Effective January 1, 2022.

AB 424 enacts the Private Student Loan Collections Reform Act. Effective July 1, 2022.

Proposition 24 passed and expands consumer privacy protections. Effective January 1, 2023.

 

GEORGIA

HB 63 alters the alternative ad valorem tax on motor vehicles. Effective January 1, 2022.

 

ILLINOIS

The document preparation fee in the State of Illinois rises from $303.60 to $324.24. Effective January 1, 2022.

HB 3940 amends the Motor Vehicle Franchise Act. Effective January 1, 2022.

SB 58 restores the full sales tax trade-in credit on vehicle trade-ins. Effective January 1, 2022.

 

INDIANA

HB 1285 sets up a statewide electronic titling and lien system. Effective, in part, on January 1, 2022.

Bulletin 262 adjusts the credit life rates. Effective January 1, 2022.

 

IOWA

Iowa released new regulations increasing the special annual registration fees for electric vehicles. Effective January 1, 2021, and January 1, 2022.

HF 719 creates the Insurance Data Security Act which enacts standards for data security and data breach investigations. Effective January 1, 2022.

 

MICHIGAN

HB 4117 allows the Secretary of State to issue vehicle registrations for two years if requested by the vehicle owner. Effective October 1, 2022.

 

NEW JERSEY 

SB 324 directs the New Jersey Motor Vehicle Commission to promulgate rules for electronic registration certificates. Effective May 1, 2023.

 

NEW MEXICO

Prima Facie Credit Insurance Rates were updated by Bulletin 2021-0028 and will go into effect on February 1, 2022.

 

NEW YORK

SB 898 amends A10118-A/S05470B and exempts transactions of at least $50,000 for auto dealers from commercial financing disclosures. Effective January 1, 2022.

 

NORTH CAROLINA

SB 425 makes changes to the current statutes governing Guaranteed Asset Protection Waivers. Effective January 1, 2022.

 

OREGON 

SB 485 declares a student loan emergency and creates new procedures in Oregon for student loan lenders. Effective July 1, 2022.

 

PENNSYLVANIA

Pennsylvania’s maximum allowed document preparation fee for 2022 is either $351 or $422 (if electronically filed). Effective January 1, 2022.

 

SOUTH CAROLINA

Orders 2021-02, 2021-03, and 2021-04 were adopted by the Department of Insurance for Prima Facie Credit A&H and Credit Property rates. Effective January 1, 2022.

 

VIRGINIA

The Virginia Consumer Data Protection Act establishes rights for Virginia consumers to control how companies use their personal data. Effective January 1, 2023.

The Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2022, enacts new rates for a 3-year period. Effective January 1, 2022.

 

WASHINGTON

SB 5000 reduces taxes 50% on fuel-cell powered passenger cars, light duty trucks, and medium duty passenger vehicles powered by a fuel cell. Effective July 1, 2022.

 

Review of Federal Changes Effective in 2021

 

CONSUMER FINANCIAL PROTECTION BUREAU

Dollar threshold adjustments announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2021.

The CFPB published its annual TILA threshold adjustment, as required by the Dodd-Frank. Effective January 1, 2021.

The CFPB released a notice to collect and report on credit applications made by small businesses. Comments were accepted until November 29, 2021.

On October 30, 2020, the CFPB released the Final Rule for Debt Collection Practices—Regulation F. Effective November 30, 2021.

 

Review of Federal Changes Effective in 2022

 

CONSUMER FINANCIAL PROTECTION BUREAU

Dollar threshold adjustments were announced for the Ability to Repay/ Qualified Mortgage Rule and HOEPA. Effective January 1, 2022.

The CFPB published its annual TILA threshold adjustment, as required by the Dodd-Frank. Effective January 1, 2022.

The CFPB delayed the mandatory compliance date for the new qualified mortgage (QM) final rule. New effective date is October 1, 2022.