Compliance Alerts

November 2020

 

Effective State Changes

 

CALIFORNIA

Californian’s voted to affirm Proposition 24 regarding expanded consumer privacy protections. The proposition would allow Californians to block companies from sharing personal information and limit businesses’ use of “sensitive personal information.” Effective January 1, 2023.

 

NEBRASKA

Nebraskans voted in favor of Initiative 428 which amends Nebraska statutes to reduce the amount that payday lenders can charge to a maximum annual percentage rate of thirty-six percent. In addition, the Initiative deems void and uncollectable any transaction made in violation of the cap made by a deferred deposit lender. Effective November 30, 2020, or thereafter, pending Governor’s Proclamation.

 

 

Effective Federal Changes

 

CFPB - ANNUAL REGULATION M & Z ADJUSTMENTS

The Consumer Financial Protection Bureau (“CFPB”) published its annual Truth in Lending Act threshold adjustment, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. For 2021 the exemption threshold amount for Regulation M and Z will remain the same at $58,300. Effective January 1, 2021.

 

CFPB - DEBT COLLECTION PRACTICES – FINAL RULE

On October 30, 2020, the CFPB released the Final Rule for Debt Collection Practices—Regulation F. This regulation implements the Fair Dept Collection Practices Act (“FDCPA”). The Final Rule addresses electronic communications, e.g., email, text messages, and social media. The Final Rule also applies prohibitions on harassment or abuse, false or misleading representations, and unfair practices. The Final Rule will become effective one year after publication in the Federal Register. Effective November 30, 2021.