Today's Trends in Credit Regulation

Welcome to Hudson Cook Insights (formerly Basis Points) - a collection of articles written each month by the attorneys of Hudson Cook, LLP, in an effort to keep their clients and other compliance professionals informed about current trends and developments in consumer credit finance that will affect the way they do business.

April 2017
By Eric D. Mulligan

New cybersecurity rules from New York's Department of Financial Services went into effect on March 1. The rules apply to any "covered entity," which is any individual or non-governmental entity in a business that requires authorization under the state's Banking Law, Financial Services Law, or Insurance Law. The rules require every covered entity to maintain a cybersecurity program that assesses cybersecurity risks, protects the entity's stored information, and responds to cyberattacks, both successful and unsuccessful, so as to mitigate their harmful effects. Each entity must have a written cybersecurity policy, and a senior officer (or group of senior officers) must approve the policy.[more»]

By Kavitha J. Subramanian

The Colorado banking regulator, in two recent enforcement actions, has challenged online lending platforms that partner with state-chartered banks. Although the enforcement actions name only the non-bank partners, the state-chartered banks have jumped into the fray by suing the Colorado regulator. The Administrator of Colorado's Uniform Consumer Credit Code ("UCCC") filed enforcement actions against Marlette Funding and Avant. Both companies partner with state-chartered banks to offer consumer loans through an online platform.[more»]

By Erik M. Kosa

Several consumer groups have filed a lawsuit in federal court seeking to overturn the FTC's recent settlements with three auto dealer groups involving the sale of certified pre-owned vehicles subject to open recalls. The orders prohibit the dealers from claiming that their used vehicles are safe, have been repaired for safety issues, or have been subject to a rigorous inspections unless they have either repaired the vehicles or their safety claims are paired with a clear disclaimer that the vehicles may be subject to unrepaired safety recalls. The consumer groups allege that these orders do not go far enough because the sale of "certified" pre-owned vehicles with open recalls is inherently deceptive, regardless of what any disclosures say. These groups have also publicly urged the FTC to ban the sale of any pre-owned vehicles subject to an open recall as inherently unfair.[more»]

By Michael A. Benoit

This month's report features activity from the Consumer Financial Protection Bureau, the Federal Trade Commission, the Justice Department, and the National Highway Traffic Safety Administration. While only two of the items we mention this month are expressly auto-related, the rest should be of interest to those in the auto sales, finance, or leasing business.[more»]

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