Government Relations Updates

Government Relations Updates

Government Relations Committee (GRC) Updates

(Includes all updates related to Covid-19)

TEAM GRC CONGRESS UPDATES

1/13/2022  The 2nd Session of the 117th Congress has convened. New legislation is being filed and the sponsors of bills already in committee from the previous Session are picking up where they left off in 2021.  As always, NPA’s Team GRC is monitoring all activity in Washington relative to the pawn industry. There will be a GRC webinar on Thursday, January 27 at 4:00pm EST to ...

Be Sure That Your Pawn Store’s Advertising Complies with TILA

December 9, 2021  TILA (Truth in Lending Act) compliance remains important and is a top priority for the CFPB.   TILA regulates the disclosures you put on your pawn tickets.   Compliance with all disclosure requirements and calculations such as the “finance charges” and “Annual Percentage Rate” (“APR”) is very important.   TILA also regulates how you advertise the terms on which you offer pawn transactions. These are ...

Frequently Asked Questions: Compliance with the Military Lending Act

Updated November 23, 2021  We’re here with answers to NPA members’ recent questions on Military Lending Act (MLA) compliance!   1. How do we determine whether a pawn customer is a “covered borrower” eligible for the maximum 36% Military Lending Act Annual Percentage? Pawnbrokers may use any reasonable means to determine whether a pawn customer is an active-duty service member or a dependent of one. The “check-the-box” is a method many pawnbrokers use. However, any “check-the-box” method does not qualify you for the “safe harbor” ...

36% Rate Cap Bill filed in the U.S. House of Representatives

On November 15, 2021, H. R. 5974 the Veterans and Consumers Fair Credit Act was introduced by Rep. Jesus G. “Chuy” Garcia, (IL-D-4). Although the text is not yet publicly available for NPA’s Team GRC to review, the intent of the bill is to amend the Truth in Lending Act by extending the 36% APR of the Military Lending Act ...

Protecting Your Business and the Pawn Industry Following the CFPB’s Military Lending Act Enforcement Action against First Cash/Cash America West, Inc.

November 16, 2021  The NPA has reviewed the CFPB’s Military Lending Act (MLA) enforcement action against First Cash, Inc./Cash America West, Inc. that we informed you of on November 12, 2021, and is following pawnbrokers’ questions and comments on various forums. It is important for all NPA members to take these steps to protect your businesses:  A CFPB civil investigative demand (CID) may be based on just one consumer complaint. A CID is a complicated and expensive ...

CFPB Commences Military Lending Act Enforcement Action Against  FirstCash, Inc. and Cash America West, Inc. 

November 12, 2021  Earlier today, the CFPB filed an action in Texas federal district court against FirstCash, Inc. and Cash America West, Inc. The CFPB previously ordered Cash America International, Inc. to halt its practices against military families, which prohibited Cash America and its successors from violating the MLA. As FirstCash is a successor to Cash America it is subject to that order.   The CFPB ...

Buy Now, Pay Later In The News

11/4/2021  Buy Now Pay Later (BNPL) is not just for online shopping. It is another option for extending credit to consumers on purchases.   Do an internet search for BNPL and the results of available offers are astounding.   Is it an option for your retail sales?  What does the BNPL option mean?  Is it available on all purchases or just certain items?  I ...

Update On IRS Reporting Plan

10/28/2021 Latest episode in the mini-series about an IRS reporting plan is…  Some media reports the plan is dead, but industry sources are not ordering flowers just yet.  Nothing is dead until the Senate votes on the final tax ‘pay-for’ package in the budget reconciliation bill.  Today’s revisions do not appear to include the IRS reporting plan.  Read more from the banking industry here

Postal Banking Pilot Program Not Authorized by Congress

10/28/2021 Ranking Members of the House Financial Services and the Oversight and Reform Committees sent a letter to the Postmaster General regarding the USPS paycheck-cashing services pilot program at East Coast locations. Several points are…  The USPS does not have the authority to expand non-postal services without congressional approval.   During previous Committee negotiations the USPS never mentioned their intention to expand into ...

IRS Treasury Fact Sheet

What is the latest DC discussion on the Administration/Treasury/IRS modified proposal to receive information on your bank transactions?  Treasury Department 10/19/2021 press release refers to “financial institutions and banks” only having to add two additional numbers to what they already report. (see link)  Revisions include raising the reporting threshold from $600 to $10,000 and exempting certain wages and federal benefits.  Republicans on Ways & Means oppose surveillance (see link)  NPA ...

New Director of the CFPB

After months of hearings, discussions, etc. Rohit Chopra was sworn in as Director of the CFPB on October 12, 2021. His opening statement outlines his commitment for the CFPB to watch out for families, workers, and communities.    Last week I monitored a well-known DC firm’s webinar on ‘What to Expect Next’ from the new CFPB Director. Here are some of their thoughts…  Rulemaking through Enforcement,  Regulation ...

Reporting Customer Information

Will the proposed $600 reporting of customers’ accounts affect the requirements on pawnbrokers? The discussions, speculation and questions about this proposal are all over the place. Team GRC is closely watching the negotiations in Congress and find…  The proposal would create a comprehensive financial account information reporting regime.  The requirement would apply to both business and personal accounts.   The proposal would be effective ...

Protecting Financial Privacy Act

The Biden Administration’s proposal for the IRS to monitor every American’s financial transaction of $600 or more will see another challenge in the form of the Protecting Financial Privacy Act. On Monday the bill sponsor, Senator Tommy Tuberville (R-AL) stated that currently, “the IRS can find out every $10,000 you spend, but now they want to move it all the way down to $600. ...

Texas Office of Consumer Credit Commissioner Report

Thanks to our fellow pawnbrokers in Texas for sharing a report from their regulator, the Office of Consumer Credit Commissioner, that reflects pawn industry statistics from 2008 through 2019. Although pawnbrokers are licensed, regulated, examined, etc. in most all states, just a very few of them publish the statistical information we are required to provide.     You can download the report here.

NPA Wins Injunction Against 36% Rate Cap

NPA, IPA and Other Plaintiffs Won a Preliminary Injunction against the Illinois Department of Financial and Professional Regulation’s Attempt to Apply a 36% Rate Cap on Illinois Pawnbrokers!   September 7, 2021As many of you know, the NPA joined the Illinois Pawnbrokers Association, Cash America, Inc. of Illinois, and EZPawn Illinois, Inc. as named plaintiffs in seeking a preliminary injunction against the Illinois Department of Financial and Professional Regulation’s attempts to add pawn ...