Compliance Alerts

Effective State Changes



Proposition 111 was a ballot measure overwhelmingly supported by the voters of Colorado and approved on November 6, 2018. The proposition capped the yearly Annual Percentage Rate at 36% for short term loans, also known as “payday loans.”

Maintenance fees and any other charges may not be included in short term loans unless expressly authorized by statute.

Effective February 1, 2019.


On August 22, 2018 the Commonwealth of Virginia’s Bureau of Insurance proposed adjusted prima facie rates and these were adopted for a three-year period. The Accident & Sickness rates for 2019 were updated.

The 12-month rate for $100 of Initial Insured Indebtedness will be as follows:

  • 14-day Retro: $1.73
  • 30-day Retro: $1.24

Pursuant to Case No. INS-2018-00030, the credit life insurance rates will be $0.6228 per month per $1,000.00 of outstanding insured indebtedness if premiums are payable on a monthly outstanding balance basis.

The rate per $100.00 of initial indebtedness repayable in 12 equal monthly installments is $0.3975.

Effective January 1, 2019.


The Washington D.C. City Council passed a bill which establishes rules for the administration, issuance, sale, registration, and regulation of service contracts. That bill was signed by the Mayor on November 23, 2018.

The law establishes new consumer protection and regulatory duties for the Commissioner of the Department of Insurance Securities and Banking and specifies that a service contract is not insurance for the purposes of District law.

Effective May 22, 2019.


Effective Federal Changes



The CFPB published its annual Truth in Lending Act threshold adjustment, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

For 2019 the exemption threshold amount for Regulation M and Z is increased from $55,800 to $57,200.

Effective January 1, 2019.


Update Reminders



California’s Pilot Program for Small Loans will go into effect on January 1, 2019. This Pilot Program was originally reported in the September / October Consumer Finance Newsletter.