New York Publishes Proposed Rules On Commercial Financing Disclosures

On September 14, the New York Department of Financial Services (NYDFS) published a notice of proposed rules under New York’s Commercial Financing Disclosure Law (CFDL) (we discussed this previous rulemaking in a blog post here). Under the CFDL, commercial finance companies are required to give consumer-style loan disclosures to potential recipients when a specific offering of finance is extended for certain commercial transactions of $2.5 million or less. We note some items in particular from the latest proposed rule:

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By | September 8th, 2022 ||

Hunstein Decision Informs Financial Services Industry Use Of Third Party Vendors

More than a year ago on April 21, 2021, the 11th Circuit Court of Appeals issued an opinion in Hunstein v. Preferred Collection and Management Services Inc. that rocked the world of the debt collection industry, and the larger financial services industry in general. That decision put into question the legality of the common collection practice of using a third-party vendor to send collection letters to consumers. The practice was so common and universally accepted that […]

By | September 5th, 2022 ||

NYDFS Issues Pre-Proposed Rules To Implement New Commercial Financing Disclosure Law

The New York Department of Financial Services (NYDFS) has issued “pre-proposed” rules under New York’s commercial financing disclosure law that was enacted at the end of 2020. The pre-proposed rules are 45 pages long and were posted on the NYDFS website on September 21. Comments on the pre-proposed rules are due by October 1. There will be a longer comment period once a proposed rule is published in the State Register. The NYDFS aims to finalize the […]

By | September 29th, 2021 ||