October 2024

 

Effective State Changes

 

CALIFORNIA

Amongst other provisions, AB 3281, would prohibit the contractual waiver of the protections afforded by the Educational Debt Collection Practices Act and the Automobile Sales Finance Act. Effective January 1, 2025.

Signed on September 29, 2024, AB 1755 seeks to streamline the civil process for lemon law disputes. Some reforms included in the bill are outlining clear formulas for restitution payments, adopting expedited settlement processes, and imposing financial penalties on manufacturers who fail to buy back a lemon vehicle. Effective January 1, 2025.

SB 1223 amends the definition of “sensitive personal information” in the California Consumer Privacy Act to include a consumer’s neural data. Effective January 1, 2025.

AB 1008 clarifies that the California Consumer Privacy Act applies to personal information regardless of media format. Effective January 1, 2025.

AB 1824 is another bill aimed at strengthening the California Consumer Privacy Act by requiring businesses that obtain consumer data through acquisition or merger must comply with a consumer’s previous opt-out request. Effective January 1, 2025.

 

SOUTH CAROLINA

On October 11, 2024, the South Carolina Department of Insurance adopted Orders 2024-04, 2024-05, and 2024-06 confirming Prima Facie Credit A&H and Credit Property insurance rates for 2025.

Under 2024-06, the Credit A&H rates for insurance sold in conjunction with consumer credit transactions in 2025 will decrease from the rates in 2024. The 12-month rate per $100 of Initial Insured Indebtedness will be as follows:

• 14-day Retro: $1.05
• 30-day Retro: $0.99

Under Order 2024-04, the 3-day retroactive A&H rate for insurance sold in conjunction with loans will decrease to $0.20 per $5.00 of monthly indemnity.

Under Order 2024-05, credit property rates will decrease from 2024 to 2025 for Automobile Fire and Theft, Automobile Collision, and Household Goods – Dual Interest. The rate for Household Goods – Single Interest remains at the 2024 level. Effective January 1, 2025.

 

VIRGINIA

On June 14, 2024, the Virginia State Corporation Commission issued the Order Adopting Adjusted Prima Facie Rates for the Triennium Commencing January 1, 2025, (Case No. INS-2024-00060), enacting new rates for a 3-year period. The new rates will be:

 

Credit Life Rates
Single Life Rate (discounted at 3.63% for interest and mortality)	$0.8094/$1,000/month
Joint Life Rate (165% of single life rate)	$1.3355/$1,000/month
Single Life Rate (per $100 @ 12 months)	$0.5167
Joint Life Rate (per $100 @ 12 months)	$0.8521
Single Level Life (per $100 @ 12 months)	$0.9452
Joint Level Life (per $100 @ 12 months)	$1.5597

 

*Level life rates are derived from the rates per $1,000 per month and discounted at 5.5% for interest and mortality.

 

Credit A&H Rates
14 Day Retro	$1.25/$100 @ 12 months
30 Day Retro	$0.90/$100 @ 12 months
14 Day Elim	$1.00/$100 @ 12 months
30 Day Elim	$0.63/$100 @ 12 months

 

This most recent change is a decrease in A&H prima facie rates.

Effective January 1, 2025.

 

 

CFPB ANNUAL REGULATION M & Z ADJUSTMENTS

The Consumer Financial Protection Bureau (“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 2025, the exemption threshold amount for Regulation M and Z will increase from $69,500 to $71,900. The increase was based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (“CPI-W”) as of June 1, 2024, which experienced an annual increase of 3.4 percent. Effective January 1, 2025.