ACA’s advocacy team is working with legislators and regulators on Capitol Hill. Editor’s note: This article is for members only.
3/26/2020 9:00
U.S. House of Representatives to Vote on CARES Act
The U.S. Senate agreed on the package for the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) late in its proceedings and voted 96-0 to approve the bill. The Senate is now in recess until April 20. The U.S. House of Representatives will next consider the bill and a voice vote is on the calendar for Friday, March 27.
The final agreement DOES NOT include the harmful directives to the accounts receivable management (ARM) industry that would have crushed businesses and their ability to operate. There are also several provisions aimed at helping small businesses, including $350 billion in aid and support for the community financial institutions and hospitals that ACA International members serve. ACA will provide more detailed information about these proposals in coming days and in the next Daily Huddle.
With a $2 trillion stimulus package going to voice vote in the House of Representatives on Friday, ACA International’s next Daily Huddle, sponsored by Collectors Insurance Agency, will offer members a deeper dive into the nearly 900-page bill that’s expected to become law in the coming days. With respect to both compliance obligations and business operations, ACA will provide members with a first look at relevant details of the bill and the ill-considered provisions that were cast aside during negotiations.
Speakers include Leah Dempsey, vice president and senior counsel of federal advocacy; Andy Madden, vice president, state government and unit affairs; and Colin Winkler, corporate counsel.
In addition to the ACA panel, we will have two guest speakers, Josh Finestone and Sarah Donovan from Venable, LLP.
ACA will also provide updates as the U.S. House of Representatives determines the process for voting on the agreed-to package. Read more from ACA here and view a summary of the CARES Act.
U.S. Small Business Administration Offers Federal Disaster Loans
The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses in the District of Columbia that are suffering substantial economic loss as a result of the Coronavirus (COVID-19).
A SBA press release (English & Spanish) outlines the details of the declaration received by the District of Columbia, at the request of the governor.
Eligibility for Economic Injury Disaster Loans is based on the financial impact of the Coronavirus (COVID-19). The interest rate is 3.75 % for small businesses. The interest rate for private non-profit organizations is 2.75 %. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
Applicants may apply online, receive additional disaster assistance information and download applications at https://disasterloan.sba.gov/ela. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected] for more information on SBA disaster assistance. Individuals who are deaf or hard of hearing may call (800) 877-8339. For complete details on SBA, visit www.sba.gov.
SBA Customer Service Representatives will be available to answer questions about SBA’s Economic Injury Disaster Loan program and explain the application process at 1-800-659-2955.
Consumer Financial Protection Bureau Provides Flexibility During COVID-19 Pandemic
The Consumer Financial Protection Bureau released a statement March 26 that it is providing needed flexibility to enable financial companies to work with customers in need as they respond to the COVID-19 pandemic. The bureau is postponing some data collections from industry on bureau-related rules to allow companies to focus on responding to consumers in need and making changes to its supervisory activities to account for operational challenges at regulated entities.
"As consumers seek temporary relief from lenders, the pandemic is impacting the operations of financial companies that are eager to help their customers during this unprecedented time," said Director Kathleen L. Kraninger in a CFPB news release.
"The bureau, along with our state and federal partners, have released prior guidance encouraging financial institutions to work constructively with borrowers and other customers affected by COVID-19 to meet their financial needs. We will continue to issue additional guidance and policies to facilitate the ongoing collaborative relationship between companies and their customers during this time," concluded Director Kraninger.
The bureau will not expect quarterly information reporting by certain mortgage lenders as required under the Home Mortgage Disclosure Act (HMDA) and Regulation C. During this time, entities should continue collecting and recording HMDA data in anticipation of making annual submissions. The Bureau will provide information on when and how institutions will be expected to commence what would have been new quarterly HMDA data submissions.
The Bureau also will not expect the reporting of certain information related to credit card and prepaid accounts under the Truth in Lending Act, Regulation Z, and Regulation E. This includes the annual submissions concerning agreements between credit card issuers and institutions of higher education; quarterly submission of consumer credit card agreements; collection of certain credit card price and availability information; and submission of prepaid account agreements and related information.
Additionally, the following data collections are being postponed:
- A survey of financial institutions that seeks information on the cost of compliance in connection with pending rulemaking on Section 1071 of the Dodd-Frank Act; and
- The bureau also announced that as a result of operational challenges confronted by institutions due to the pandemic, the Bureau will work with affected financial institutions in scheduling examinations and other supervisory activities to minimize disruption and burden. When conducting examinations and other supervisory activities and in determining whether to take enforcement action, the Bureau will consider the circumstances that entities may face as a result of the COVID-19 pandemic and will be sensitive to good-faith efforts demonstrably designed to assist consumers.
Read the complete announcement from the CFPB here.
The CFPB also extended its comment period on the Supplemental Notice of Proposed Rulemaking (SNPRM) concerning out-of-statute debt to June 5, 2020, a change ACA International requested in consideration of challenges throughout the country as a result of COVID-19. ACA submitted a letter to CFPB Director Kathy Kraninger requesting more time on behalf of the industry.
View all of ACA’s ongoing news, compliance, education and state and federal advocacy updates on the ACA News: COVID-19 Updates webpage.
For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at [email protected] or call (952) 926-6547.