Troutman Pepper Weekly Client Monetary Providers COVID-19 E-newsletter – April 2022 | Troutman Pepper

Like most industries in the present day, Client Finance Providers companies are being considerably impacted by the novel coronavirus (COVID-19). Troutman Pepper has developed a devoted COVID-19 Useful resource Middle to information purchasers via this unprecedented world well being problem. We usually replace this web site with COVID-19 information and developments, suggestions from main well being organizations, and instruments that companies can use freed from cost.

That can assist you maintain abreast of related actions, beneath discover a breakdown of among the greatest COVID-19 pushed occasions on the federal and state ranges to influence the Client Finance Providers business this previous week:

Federal Actions

State Actions

Privateness and Cybersecurity Actions

Federal Actions:

  • On March 31, the U.S. Supreme Court docket considerably restricted the jurisdiction of federal courts to verify or vacate arbitral awards below Sections 9 and 10 of the Federal Arbitration Act (FAA) in Badgerow v. Walters. The Court docket confirmed its prior rulings that the FAA itself doesn’t create subject material jurisdiction and held {that a} federal court docket should have an “unbiased jurisdictional foundation” to verify or vacate an award. The influence of the ruling is important and can end in events turning to state courts to verify arbitral awards in ostensible federal query instances. For extra data, click on right here.
  • On March 31, Rep. Trey Hollingsworth (R-IN) and Sen. Invoice Hagerty (R-TN), launched the Stablecoin Transparency Act (S. 3970 and H.R. 7328) in each the Home of Representatives and the Senate. The invoice requires stablecoins to be backed by authorities securities with maturities lower than 12 months or home {dollars}, whereas requiring stablecoin issuers to publicly launch audited experiences of reserves executed by third-party auditors. For extra data, click on right here.
  • On March 30, the Client Monetary Safety Bureau (CFPB) sanctioned Edfinancial for deceiving scholar mortgage debtors about their eligibility for Public Service Mortgage Forgiveness, and the steps they may have taken to acquire mortgage cancellation. Edfinancial made a collection of misleading statements to debtors about mortgage cancellation for public service, together with falsely telling debtors with FFELP loans that they may not qualify for this system. For extra data, click on right here.
  • On March 29, the CFPB issued a report, displaying that bank card issuers charged $12 billion in late charges in 2020. Late price penalties are charged along with curiosity when a cardholder doesn’t make the minimal cost by the due date. For extra data, click on right here.
  • On March 28, Consultant Stephen Lynch (D-MA), together with co-sponsors Jesús G. García (D-IL), Rashida Tlaib (D-MI), Ayanna Pressley (D-MA), and Alma Adams (D-NC), launched H.R. 7231, the Digital Forex and Safe {Hardware} Act (ECASH Act). The invoice would direct the U.S. Treasury secretary to develop and subject a digital analogue to the U.S. greenback, or “e-cash,” supposed to “replicate and protect the privateness, anonymity-respecting, and minimal transactional data-generating properties of bodily forex devices resembling cash and notes to the best extent technically and virtually potential,” all with out requiring a checking account. For extra data, click on right here.
  • On March 24, the Division of Justice (DOJ) introduced that it charged two people in non-fungible token (NFT) fraud and cash laundering associated to purchasers of NFTs marketed as “Frosties.” In response to a DOJ press launch, “[r]ather than offering the advantages marketed to Frosties NFT purchasers, [defendants] transferred the cryptocurrency proceeds of the scheme to numerous cryptocurrency wallets below their management.” U.S. Legal professional for the Southern District of New York Damian Williams stated the defendants “promised traders the advantages of the Frosties NFTs, however when it bought out, they pulled the rug out from below the victims, virtually instantly shutting down the web site and transferring the cash.” For extra data, click on right here.
  • On March 23, the CFPB Director Rohit Chopra issued a press release relating to the ultimate report of the Interagency Process Pressure on Property Appraisal and Valuation Fairness (PAVE). For extra data, click on right here.

State Actions:

  • On March 31, California Legal professional Common Rob Bonta filed an amicus temporary “in protection of state legal guidelines defending shoppers from false and deceptive promoting” within the Ninth Circuit Court docket of Appeals case of Moreno v. Vi-Jon. The case purportedly facilities round false promoting associated to claims made on the back and front labels of hand sanitizer that allegedly misstate the effectiveness of the product towards widespread, dangerous viruses and micro organism. In response to the press launch, the district court docket dismissed “the case, discovering each that [the plaintiff] ought to have identified that [the defendant’s] claims had been unfaithful, and that [the plaintiff] lacked standing to even pursue the litigation.” The legal professional common’s workplace argued that the court docket erred in dismissing the case as financial damage from misleading promoting needs to be ample to determine standing. For extra data, click on right here.
  • On March 29, Virginia Legal professional Common Jason Miyares joined 20 different states in a multistate motion towards the Middle for Illness Management and Prevention’s (CDC) use of a masks mandate for public transportation. In response to the press launch, “the CDC’s illegal masks mandate exceeds the company’s authority by not authorizing economy-wide measures.” Legal professional Common Miyares acknowledged, “The CDC’s masks mandate on public transportation, like air journey, is scientifically pointless at this stage of the pandemic. Not solely are the CDC’s masks mandates for public transportation an instance of federal overreach, however they’re outdated as states throughout the nation have lifted masks mandates in different elements of every day life.” For extra data, click on right here.
  • On March 29, New York Legal professional Common Letitia James despatched letters to the most important bank card corporations and main debt collectors working in New York, warning these corporations of latest state rules that stop them from suing shoppers for outdated money owed. In response to the press launch, the Client Credit score Equity Act of 2021 “will go into impact subsequent month and reduces the statute of limitations for shopper debt assortment from six years to a few years.” The act additionally mirrors lots of the rules promulgated in Regulation F by the CFPB. For extra data, click on right here.
  • On March 24, Manhattan District Legal professional Alvin L. Bragg, Jr. introduced the indictment of a person for “working a worldwide cash laundering enterprise that enabled at the very least 7 purchasers, who engaged in a wide-range of legal exercise, to make use of Bitcoin anonymously to cover and obscure their unlawful proceeds,” which concerned the person “convert[ing] greater than $2.3 million into Bitcoin and greater than $380,000 value of Bitcoin into U.S. {dollars}, utilizing a rotating set of accomplices … to open financial institution and cryptocurrency alternate accounts to launder legal proceeds.” For extra data, click on right here.
  • On March 15, the D.C. Council of the District of Columbia Committee of the Complete met in a full listening to, partially to listen to amendments launched to B24-0357 — the Defending Shoppers from Unjust Debt Assortment Practices Modification Act of 2021. Raised in July 2021 as a trio of laws, B24-0357, Emergency B24-0347, and Short-term B24-0348 handle debt assortment within the district throughout the pandemic. All three have an effect on debt assortment in D.C.; laws resembling that is usually launched as a collection of emergency, short-term, and everlasting payments. B24-0357 is the everlasting model of the Defending Shoppers laws. For extra data, click on right here.

Privateness and Cybersecurity Actions:

  • On March 29 and 30, the California Privateness Safety Company (CPPA) held pre-rulemaking “informational classes” relating to the California Privateness Rights Act (CPRA). Along with rulemaking, the CPPA handles the longer term implementation and enforcement of the CPRA. Final week’s classes included 10 “informational displays” given by specialists from authorities and academia, masking varied subjects, resembling darkish patterns, automated decision-making, and cybersecurity audits. These classes intend to assist the CPPA and common public perceive varied subjects related to the CPRA rulemaking course of and will likely be adopted by “stakeholder classes” later this month. For extra data, click on right here.
  • On March 29, the Workplace of the Comptroller of the Forex (OCC) issued a bulletin geared toward guaranteeing that OCC-regulated entities use the suitable “designated factors of contact” when complying with the Laptop-Safety Incident Notification: Last Rule (OCC Bulletin 2021-55). This rule requires that banking organizations notify their federal regulator “no later than 36 hours after the banking group determines {that a} notification incident has occurred.” Beneath the bulletin, OCC-regulated entities might perform this notification by contacting their supervisory workplace, submitting a notification by way of the BankNet web site (out there right here), or contacting the BankNet assist desk. An analogous launch printed by the Federal Deposit Insurance coverage Firm (FDIC) is accessible right hereand our abstract and evaluation of the interagency remaining rule is accessible right here.

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