September 2023

 

Effective State Changes

 

DELAWARE

Signed into law on September 11, 2023, HB 154 establishes the Delaware Personal Data Privacy Act. The Act describes a consumer’s personal data rights and provides that residents of Delaware will have the right to know, access, and correct any misinformation of their personal data. Also described in the Act are the thresholds regarding which businesses fall under the purview of the Personal Data Privacy Act. And finally, the Act enables the Delaware Department of Justice to enforce the new law and provide education and outreach to consumers and businesses affected by its provisions. Effective January 1, 2025.

 

NORTH CAROLINA

HB 447 was signed into law by Governor Roy Cooper on August 24, 2023, and changes many current statutes affecting motor vehicle dealers and manufacturers. Amongst other provisions, the new law prohibits manufacturers from interfering in vehicle dealer independence as it applies to corporate structure and website messaging, provides that manufacturers must make all makes and models available to all franchise dealers, and clarifies how dealers should be reimbursed by manufacturers for warranty labor. Similar laws have passed throughout the nation this year. Effective September 1, 2023.

 

Reminders

 

CONNECTICUT

SB 1033 was signed into law June 29, 2023, by Governor Ned Lamont. The law modifies the types of charges and fees included in the “Finance Charge” for the purposes of calculating a Military Lending Act Annual Percentage Rate and raises the maximum amount of a covered small loan from $15,000 to $50,000 and a Retail Installment Sales Contract for consumer goods—which includes motor vehicle sales—from $50,000 to $75,000. Effective in part July 1, 2023, and October 1, 2023.

 

NORTH CAROLINA

SB 329—Session Law 2023-60—was vetoed and then overridden by the legislature on June 27, 2023. This law modifies the finance charge brackets and changes the maximum finance charge rates for consumer credit installment sale contracts, including motor vehicles. Effective October 1, 2023.

SB 331 was vetoed and then overridden by the legislature on June 27, 2023. This bill amends the North Carolina Consumer Finance Act and outlines the rate of interest that may be charged on consumer finance loans. Effective October 1, 2023.

 

Effective Federal Changes

 

CONSUMER FINANCIAL PROTECTION BUREAU

Specific dollar threshold adjustments were announced by the Consumer Financial Protection Bureau (“CFPB”). The CFPB is required to make adjustments to dollar thresholds based on annual changes in the Consumer Price Index. Updates to the Ability to Repay/ Qualified Mortgage Rule, (“ATR/QM”) and Home Ownership and Equity Protection Act (“HOEPA”), among others, were announced and become effective January 1, 2024.

 

HOEPA Annual Threshold Adjustments:

• The adjusted total amount of the loan threshold will be $26,092, up from $24,866
• The adjusted points-and-fees dollar trigger will be $1,305, up from $1,243

 

ATR/QM Threshold Adjustments

To meet qualified mortgage criteria, the combined points and fees cannot exceed the following:

• 8% of total loan amount for loans less than $16,308
• $1,305 for loans greater than or equal to $16,308 but less than $26,092
• 5% of total loan amount for loans greater than or equal to $26,092 but less than $78,277
• $3,914 for loans greater than or equal to $78,277 but less than $130,461
• 3% of total loan amount for loans greater than or equal to $130,461