In a 9-3 vote earlier this month, the California Assembly Banking and Finance Committee approved legislation requiring a license for debt collectors and debt buyers, entitled the Debt Collection Licensing Act (SB 908) (DCLA). The DCLA would prohibit a person from engaging in the business of collecting on a consumer debt in this state without a license and comply with reporting, examination, and other oversight by the California Department of Business Oversight (DBO). If enacted,…

On August 13, 2020, the Oregon Bankers Association (“OBA”) and three Oregon-chartered banks filed a Complaint for declaratory and injunctive relief against the State of Oregon, Oregon’s Attorney General, and the Director of the Oregon Department of Consumer and Business Services. The Complaint alleges that House Bill 4204 (“HB 4204” or “the Bill”) is unconstitutional and requests the defendants be enjoined from the Bill’s provisions. Lenders of both commercial and residential loans secured by real…

Fannie Mae and Freddie Mac provided temporary guidance to lenders due to COVID-19 on various topics related to servicing mortgage loans. On June 30, Fannie Mae updated its COVID-19 Frequently Asked Questions – Servicing on the topics related to retention workout options, reporting and operational processes, and incentive fees, amongst other topics. Foreclosure Suspension Extended The CARES Act provided that other than for an abandoned or vacant property, any servicer of a federally-backed mortgage loan…

Enforcement of the California Consumer Privacy Act (CCPA) began July 1, 2020. Our privacy team at Troutman Pepper includes several attorneys who worked in an attorney general’s office. This privacy regulatory team has identified six areas of enforcement likely to catch the California Office of the Attorney General’s (OAG) attention, which arguably holds sole regulatory enforcement authority under the Act. This six-part series will focus on those areas of the law. Building on the experience…

Like most industries today, Consumer Finance Services businesses are being significantly impacted by the novel coronavirus (COVID-19). Troutman Pepper has developed a dedicated COVID-19 Resource Center to guide clients through this unprecedented global health challenge. We regularly update this site with COVID-19 news and developments, recommendations from leading health organizations, and tools that businesses can use free of charge. To help you keep abreast of relevant activities, below is a breakdown of some of the…

On August 12, 2020, Nicholas Brechun, Compliance Supervisor for the Colorado Fair Debt Collection Practices Act (“CFDCPA” or “the Act”), sent out notice of a stakeholder meeting to discuss amendments to the Act. The stakeholder meeting has been scheduled for August 25, 2020 at 2:00 p.m. The proposed amendments are available in redline here. Most significantly, the suggested rule changes include: Rule 1.05(4) – preventing a terminated licensee from selling rights to collect accounts…

Register August 27, 2020 9:00am PT/12:00pm ET Consumer counterclaims present a frustrating dilemma and tough strategic choices for debt collectors. Essentially required to bring most collection actions in state small claims courts, debt collectors routinely find themselves defending counterclaims, including federal claims before elected judges and state court juries. This webinar will examine common threatened and filed state court counterclaims, strategies for handling counterclaims, practical differences between counterclaims and affirmative claims, procedural considerations and practical…