Troutman Pepper Weekly Consumer Financial Services COVID-19 Newsletter -October 2021 | Troutman PepperOctober 12, 2021
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.
Our bank and loan servicing clients also face novel challenges affecting their industry due to COVID-19, particularly the ever-changing rules and regulations concerning evictions and foreclosures. We closely track these updates and have assembled an interactive tracker containing state orders and guidance documents regarding residential foreclosure and eviction moratoriums. You may access this interactive tool at https://covid19.troutman.com/.
To help you keep abreast of relevant activities, below find a breakdown of some of the biggest COVID-19 driven events at the federal and state levels to impact the Consumer Finance Services industry this past week:
Privacy and Cybersecurity Activities
- On October 8, the U.S. Department of Education announced the establishment of an Office of Enforcement within Federal Student Aid (FSA). According to the announcement, the new office will “strengthen oversight of and enforcement actions against postsecondary schools that participate in the federal student loan, grant, and work-study programs.” Former Consumer Financial Protection Bureau (CFPB) Enforcement Director Kristen Donoghue will lead the FSA’s Enforcement Office and will report directly to FSA Chief Operating Officer and former CFPB Director Richard Cordray. For more information, click here.
- On October 6, the Federal Trade Commission (FTC) sent a Notice of Penalty Offenses to 70 for-profit higher educational institutions based on certain acts or practices determined to be deceptive or unfair, including misrepresentations about the need or demand for consumers who graduated from the institution, employment prospects, the number or percentage of graduates who obtained employment, and typical or potential earnings for graduates. The announcement also stated that the FTC “is resurrecting its Penalty Offense Authority, found in Section 5 of the FTC Act.” For more information, click here.
- On October 6, the U.S. Department of Education announced a temporary period during which borrowers may receive credit for payments that previously did not qualify for public service loan forgiveness (PSLF) or temporary expanded PSLF (TEPSLF). The department will offer a time-limited waiver so student borrowers can count payments from all federal loan programs or repayment plans toward forgiveness, including previously ineligible loan types and payment plans. The department estimates the waiver will make roughly 22,000 borrowers immediately eligible to have…