New Consumer Law Rights Taking Effect in 2024

This article lists federal and state consumer law rights scheduled to go into effect or expire, during the period from December 1, 2023, through January 1, 2025. Other consumer law changes will be enacted later in 2024 and will go into effect in 2024; this article lists changes whose effective dates have already been scheduled.

Of special note are important changes concerning federal student loans and school participation in the federal student loan program, a new FTC rule on motor vehicles, a new FCC order on robocalls, and changes concerning consumer bankruptcy, Other federal changes involve TILA, FCRA, CLA, HMDA, and VA, FHA, and HECM mortgages. 

California has a dozen consumer laws listed as going into effect in 2024 (including limits on junk fees and imprisonment for debt), and Colorado has significant new legislation as well, including an opt-out from state bank rate exportation.  Other states with new consumer law changes in 2024 include Alabama, Alaska, Arizona, Connecticut, Illinois, Maine, Massachusetts, Minnesota, Nevada, New Jersey, New York, Oregon, Pennsylvania, South Carolina, and Utah.

NCLC encourages readers to submit ([email protected]) additional consumer law changes effective in 2024, especially changes found in state consumer legislation. NCLC will add appropriate submissions to this article. 

December 1, 2023: Bankruptcy Rules and Forms; Massachusetts Criminal Justice Debt; New Jersey Telemarketing

Bankruptcy Rules and Forms:  Changes amend Bankruptcy Rules 3011, 8003, 9006, adding new Rule 9038 dealing with rules emergencies, and amending Official Forms 101, 309E1, 309E2, and 417A. See NCLC’s Consumer Bankruptcy Law and Practice Appxs. B, D.

Massachusetts Criminal Justice Debt: Massachusetts H. 4052, effective December 1, 2023, requires that all persons committed to a state correctional facility, state prison, or county correctional facility, including a jail or house of correction, be entitled to free voice communication services, including phone calls.  The department of correction and sheriffs have discretion to supplement free phone calls with free video and electronic communications. 

New Jersey Telemarketing Calls: Effective December 1, 2023, N.J. 56:9-128 is amended to establish a disorderly persons offense if telemarketing sales calls within the first 30 seconds do not  identify the telemarketer’s name, the name and telephone number of the person hiring the telemarketer, and the call's purpose. Telemarketers must disclose their mailing address and that of the company hiring them on the telemarketer's website and on any written communication to a customer.  Telemarketing sales calls are prohibited  between 9:00 p.m. and 8:00 a.m.

December 13, 2023:  New York Medical Debt

New York Medical Debt:  Effective December 13, 2023, New York S.B. 4907A prohibits medical debt from being collected by a consumer reporting agency or included in a consumer report and prohibits medical service providers and their debt collectors from reporting medical debt directly or indirectly to a consumer reporting agency.

December 19, 2023: Bankruptcy Protection for Military Reservists

Bankruptcy Protection for Military Reservists:  The exemption from the bankruptcy means-test for members of reserve components of the Armed Forces and members of the National Guard who, after September 11, 2001, were called to active duty or to perform a homeland defense activity for not less than 90 days, was set to expire on December 19, 2023.  On December 19, 2023, the President signed the National Guard and Reservists Debt Relief Extension Act of 2023, which extends the exemption for another 4-year period. See Pub. Law No. 118-24 (2023).

December 31, 2023:  Utah Data Privacy

Utah Data Privacy: Effective December 31, 2023, the Utah Consumer Privacy Act, Utah S.B. 227, gives consumers the right to access personal data and correct inaccuracies in or delete that personal data.  Consumers also have a right to opt out of the processing of personal data for purposes of targeted advertising, the sale of personal data, or in certain other contexts.

January 1, 2024: TILA; FCRA; CLA; HMDA; FHA, HECM, VA, and GSE Mortgages; Minimum Wage and Wage Garnishment in 21 States; Arizona; California; Colorado, Connecticut, Illinois, Massachusetts, Minnesota, Oregon

Truth in Lending Act Exemption: On January 1, 2024, the TILA threshold exempting from the statute certain credit with an amount financed over a specific dollar amount increases from $66,400 to $69,500. See 88 Fed. Reg. 83,322 (Nov.29, 2023). This exemption does not apply to home-secured credit or student loans. See NCLC’s Truth in Lending § 2.7.4.

Truth in Lending Act HOEPA Loans: On January 1, 2024, the adjusted total loan amount threshold for high-cost mortgages increases from $24,866, to $26,092, and the adjusted points and fees dollar trigger for high-cost mortgages increases from $1,243 to $1,305. See 88 Fed. Reg. 65,113 (Sept. 21, 2023).

Truth in Lending Act Ability-to-Repay and QM Adjustments: To determine whether a covered transaction is a qualified mortgage (QM), the total points and fees charged may not exceed the threshold set for the size of the loan. Effective January 1, 2024, these thresholds increase. For qualified mortgages (QMs) under the general QM loan definition in § 1026.43(e)(2), the thresholds for the spread between the annual percentage rate (APR) and the average prime offer rate (APOR) in 2024 will be: 2.25 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $130,461; 3.5 or more percentage points for a first-lien covered transaction with a loan amount greater than or equal to $78,277 but less than $130,461; 6.5 or more percentage points for a first-lien covered transaction with a loan amount less than $78,277; 6.5 or more percentage points for a first-lien covered transaction secured by a manufactured home with a loan amount less than $130,461; 3.5 or more percentage points for a subordinate-lien covered transaction with a loan amount greater than or equal to $78,277; or 6.5 or more percentage points for a subordinate-lien covered transaction with a loan amount less than $78,277. For all categories of QMs, the thresholds for total points and fees in 2024 will be 3% of the total loan amount for a loan greater than or equal to $130,461; $3,914 for a loan amount greater than or equal to $78,277 but less than $130,461; 5% of the total loan amount for a loan greater than or equal to $26,092 but less than $78,277; $1,305 for a loan amount greater than or equal to $16,308 but less than $26,092; and 8% of the total loan amount for a loan amount less than $16,308. See 88 Fed. Reg. 65,113 (Sept. 21, 2023).  See generally NCLC’s Truth in Lending § 9.3.3.

Truth in Lending Act Appraisal Requirements: Effective January 1, 2024, the exemption threshold for special appraisal requirements for  “higher-risk mortgages “ increases from $31,000 to $32,400. See 88 Fed. Reg. 83,311 (Nov. 29, 2023).  See NCLC’s Truth in Lending § 9.3.3.

Truth in Lending Exemption for Mortgage Loans: The CFPB has announced that effective January 1, 2024, creditors with assets under $2.640 billion (formerly $2.537 billion) do not have to establish escrow accounts and do not have to comply with the prohibition on balloon payments for certain higher-priced mortgage loans. For certain insured depository institutions and insured credit unions meeting certain conditions, the exemption threshold is adjusted to increase to $11.835 billion from $11.374 billion.  

Fair Credit Reporting Act File Disclosure: The maximum charge to a consumer under the FCRA for file disclosure increases effective January 1, 2024, to $15.50 from $14.50.  See 88 Fed. Reg. 78,230 (Nov. 15, 2023). Certain disclosures remain free.  See NCLC’s Fair Credit Reporting Act § 3.3.

Consumer Leasing Act Exemption: On January 1, 2024, the Consumer Leasing Act exemption for consumer leases exceeding a total contractual obligation amount increased from $66,400 to $69,500. See 88 Fed. Reg. 83,318 (Nov.29, 2023).  See NCLC’s Truth in Lending § 13.2.2.

HMDA Exemption:  The CFPB has announced that effective January 1, 2024, banks, savings associations, and credit unions with assets of $56 million or less are exempt from collecting data in 2023.  The old threshold was $54 million.

FHA Loan Limits: FHA has announced new loan limits for 2024.  The single-family, low-cost-area floor increases to $498,257 and the high-cost-area ceiling increases to $1,149,825.  See HUD Mortgagee Letter 2023-21 (Nov. 28, 2023). 

HECM Loan Limits: For HECM reverse mortgages the maximum claim amount increases on January 1, 2024, to $1,149,825. See HUD Mortgagee Letter 2023-22 (Nov. 28, 2023). 

VA, Fannie Mae, and Freddie Mac Loan Limits: The FHFA announced conforming loan limits for 2024 for Fannie Mae and Freddie Mac mortgages.  VA mortgages follow these numbers as well. In most of the United States, the 2024 value for 1-unit properties will be $766,550, an increase of $40,350 from 2023. For areas in which 115% of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit for 1-unit properties will be $1,149,825.

Minimum Wage and Wage Garnishment in 21 States: In addition to federal wage garnishment protections that utilize the federal minimum wage in calculating protected earnings, many states set limits on wage garnishment utilizing the state’s own regulation of the minimum wage. At least twenty-one states are raising the minimum wage in 2024, usually but not always on January 1, 2024.  The 21 states are: Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, and Washington.  For more on state formulas for protecting wages from garnishment, see NCLC’s report, No Fresh Start 2023: Will States Let Debt Collectors Push Families Into Poverty as the Cost of Necessities Soars? (Dec. 11, 2023).  See also the newly released edition of NCLC’s Collection Actions § 15.2, Appx. H.

Arizona Homestead Exemption: Effective January 1, 2024, the Arizona homestead exemption will increase from $400,000 based on the increase in CPI from the previous August. See Ariz. Rev. Stat. Ann. § 33-1101.  The amount has not been announced. 

California Consumer Protection re Arbitration: The U.S. Supreme Court has ruled that cases in federal court must be stayed pending a business’ appeal of the court’s denial of a motion to compel arbitration.  See Coinbase, Inc. v. Bielski, 2023 WL 4138983 (U.S. June 23, 2023). Effective January 1 2024, California S.B. 365 gives its state courts discretion whether to stay the case pending such an appeal.  See also NCLC’s Overcoming the Latest Supreme Court Arbitration Decision.

California Right to Repair Law: Effective January 1, 2024, California S.B. 244 requires manufacturers of electronic or appliance products, including cell phones, laptops, tablets, and various home appliances that were manufactured and sold or used for the first time in California on or after July 1, 2021, to make available to product owners, service and repair facilities, and service dealers, the means to effect the diagnosis, maintenance, or repair of the product. 

California Ambulance Prices:  California A.B. 716 requires the state Emergency Medical Services Authority to annually report the allowable maximum rates for ground ambulance transportation services. The bill also requires health insurance renewed on or after January 1, 2024, to require an insured who receives services from a noncontracting ground ambulance provider to pay no more than the same cost-sharing amount that the insured would pay for the same services received from a contracting ground ambulance provider. 

California Elimination of Common Counts: Effective January 1, 2024, “common counts” (such as money had and received) have been eliminated in collection actions.  See California A.B. 1414.

California Limits on Use of Images from Vehicle Cameras:  California S.B. 296, effective January 1, 2024, requires both manufacturers and dealers of new motor vehicles equipped with 1 or more in-vehicle cameras to provider certain information to the consumer, and limits the use of images from such cameras.

Colorado Loans Under $1,000: Effective January 1, 2024, the Colorado Consumer Credit Code is amended. The minimum term of a loan made pursuant to Colo. Rev. Stat. § 5-2-214 (alternative charges for loans not exceeding $1,000) is increased to 6 months and the allowed acquisition charge is reduced to 8% of the amount financed and the per month charge is lowered for each size loan by anywhere from $2.50 to $4.00. These loans can now also be only renewed once in a year. For loans made under § 5-2-214 on or after January 1, 2024, neither the consumer’s inability to repay nor the lender’s decision to obtain or not obtain additional information concerning the consumer’s creditworthiness shall be cause to determine that loan is unconscionable. § 5-2-214(5.5)(c).  But the lender shall require the consumer to provide pay stub or other evidence of income issued or dated within forty-five days before the date of loan application. If the amount borrowed is not more than 25% of the consumer’s gross monthly income and benefits, the lender is not obligated to investigate the consumer’s continued debt position, and the ability to repay need not be further demonstrated. § 5-2-214(5.5)(b). Special rules for rebates upon prepayment of loans made under § 5-2-214(4) are also repealed. 

Colorado GAP Insurance: Effective January 1, 2024, a creditor may collect additional charges for a GAP agreement, but the fee must not exceed 4% of the total amount financed or $600, whichever is greater. A creditor may charge only 1 GAP fee as part of an agreement regardless of the number of co-borrowers, co-signers, or guarantors. Colorado H.B. 1181. 

Connecticut Consumer Credit:  Effective January 1, 2024, Connecticut S.B. 1033 redefines “APR,” “small loan,” “goods,” and “sales finance company,” defines “finance charge,” requires additional persons to obtain small loan licenses, tightens restrictions on rent-a-bank lending, applies certain small loan requirements to loans between $5,000 and $50,000, limits advances exceeding unpaid principal of $50,000, makes GAP waivers cancellable, and limits the hiring of lead generators.

Illinois Medical Debt: Illinois H.B. 2719 increases patient rights to health care coverage and reduces medical debt for uninsured individuals by requiring hospitals to assess patients’ eligibility for health care coverage. The bill creates a standardized procedure for hospitals to assess or screen uninsured patients for eligible health care coverage programs and requires hospitals to assist patients in applying for said programs and financial assistance programs. Hospitals would not be allowed to pursue collection actions against patients if they did not complete screening requirements.

Illinois Condominium Protections: The Illinois Condominium and Common Interest Community Ombudsperson Act was due to sunset on January 1, 2024. 765 Ill. Comp. Stat. § 615/70.  Illinois Public Act 103-0563 extends the repeal date to January 1, 2026.

Massachusetts Dental Insurance: Mass. Gen. Law 176X § 2 goes into effective January 1, 2024, regulating dental insurance rates, requiring at least 83% of dental insurance premiums to go to claims and certain related expenses. 

Minnesota Short-Term Loans: Effective January 1, 2024, Minn. Stat. § 47.601 applies to certain entities making or arranging loans, including anyone with substantial involvement in facilitating, marketing, lead-generating, underwriting, servicing, or collecting consumer short-term loans. The credit limit on covered short-term loans increases from $1,000 to $1,300. Also effective January 1, 2024, no contract or agreement between a consumer short-term loan lender and a borrower residing in Minnesota may contain a provision in which interest rates, fees, charges, or loan amounts exceed an APR of up to 50%. No other charges or payments are permitted or may be received by the lender in connection with a consumer short-term loan. Effective January 1, 2024, a payday lender making a short-term loan with an APR of over 36% must conduct an ability-to-pay analysis.  The Minnesota law also adds protections against evasion of its lending laws.  All these changes were included in the 2023 Minnesota Commerce Omnibus Bill.

Minnesota Condominiums: Effective for fines and levies after January 1, 2024, a condominium association that levies a fine or assessment must provide written notice to a unit owner that states the amount and reason for the fine or assessment, the legal implications of an unpaid fine or assessment, and informs the unit owner that homeownership assistance is available from the Minnesota Homeownership Center. Minn. Stat. § 515B.3-102(c).

Oregon Medical Debt: Oregon H.B. 3320, effective January 1, 2024, improves hospital financial assistance or charity care.  Nonprofit hospitals would be required to screen patients who have bills of $500 or more to see if they are eligible for financial assistance. For eligible patients, the amount of financial assistance would be applied before the patient receives a bill. Patients found eligible who have already paid, will receive a full refund. The legislation would also require that financial assistance applications and appeals processes are easily accessible online.

January 10, 2024: New Jersey Telemarketing

New Jersey Telemarketing Regulations: The New Jersey telemarketing regulations are due to sunset on January 10, 2024. 

February 12, 2024:  Pennsylvania Criminal Justice Records

Pennsylvania Criminal Justice Records: The most important provisions of Pennsylvania H.B. 689 go into effect on February 12, 2024.  Pennsylvania’s Clean Slate program has already sealed over 40 million criminal records through government use of technology to determine automatically which records are eligible to be cleared—no one needs to go to court, pay money, or file paperwork. Effective February 12, 2024, H.B. 689 expands sealing eligibility for less serious drug felonies if no other conviction for 10 years and for some property-related felony offenses in certain circumstances.  Effective June 11, 2024, it also reduces the waiting period for sealing a misdemeanor offense from 10 years to 7 years conviction-free and a summary offense to 5 years. 

March 20, 2024: FCRA

Summary of FCRA Consumer Rights: On April 19, 2023, the CFPB amended the mandated FCRA Summary of Consumer Rights that consumer reporting agencies must provide consumers whenever there is a consumer request for disclosure of the consumer’s file.  Mandatory compliance is March 20, 2024. See 88 Fed. Reg. 16,531 (Mar. 20, 2023). See NCLC’s Fair Credit Reporting § 3.6.4.1, Appx. C.3.

March 25, 2024: HECM Reverse Mortgages

HECM Reverse Mortgages:  HUD Mortgagee Letter 2023-23 (Nov. 30, 2023) makes certain changes for HECM Reverse Mortgages. These changes modify the acquisition and sale of the property and payment of claim, required appraisals, cash for keys consideration, and claim guidance and are effective March 25, 2024. 

April 1, 2024: Alabama and Maine Exemptions

Alabama Exemption Amounts: The Alabama wildcard exemption amount is increased based on inflation, effective April 1, 2024, to $9,425.

Maine Homestead Exemption: Effective January 1, 2024, the Maine homestead exemption amounts are adjusted for inflation every 3 years, beginning April 1, 2024. See Me. Rev. Stat. Ann. tit. 14, § 4422(1).

April 30, 2024: Deadline to Consolidate Certain Federal Student Loans to Participate in IDR Account Adjustment

Opportunity for Federal Student Loans to Earn More Credit Toward Loan Forgiveness: On July 1, 2024, the Department of Education plans to adjust borrowers’ qualifying payment counts toward forgiveness of their federal student loans under the Income-Driven Repayment (IDR) program to provide credit for additional time that was not previously counted. This will put millions of borrowers closer to having their loans forgiven through either IDR or Public Service Loan Forgiveness (PSLF). The adjustment will automatically be applied to all loans held by the Department. Borrowers with federal student loans not currently held by the Department, such as those with commercially held FFEL or Perkins loans, can get the benefit of the adjustment by applying to consolidate into a Direct Consolidation Loan by April 30, 2024. Additionally, borrowers who have loans with different lengths of time in repayment may benefit by consolidating by April 30, 2024, as the resulting Consolidation Loan will then be credited with the longer amount of time in repayment. See https://studentaid.gov/announcements-events/idr-account-adjustment.

May 6, 2024: FHA and HECM Mortgages in Maui County

Foreclosure Moratorium for FHA and HECM Mortgages in Maui County: The foreclosure moratorium for FHA and HECM mortgages is extended through May 6, 2024.  See HUD Mortgagee Letter 2023-19 (Nov. 2, 2023).

May 13, 2024:  FTC Rule on Safeguarding Consumer Information

FTC Rule on Safeguarding Consumer Information:  The FTC has amended, effective May 13, 2024, its Safeguards Rule, 16 C.F.R. pt. 314, to require financial institutions to report to the FTC any notification event where unencrypted customer information involving 500 or more consumers is acquired without authorization.  88 Fed. Reg. 77,499 (Nov. 13, 2023).

May 31, 2024: VA Mortgages

Foreclosure Moratorium for VA Mortgages: The VA’s 6-month pause on foreclosure of VA mortgages ends on May 31, 2024. 

June 21, 2024: Bankruptcy Code Chapter 13

Bankruptcy Code Chapter 13: Congress had amended Bankruptcy Code § 109(e) to temporarily provide that to be a chapter 13 debtor, the debtor must owe liquidated, noncontingent debts of less than $2,750,000, but this provision is due to expire on June 21, 2024. If Congress does not extend or make the debt limit increases permanent, § 109(e) will revert to the former dollar amounts (subject to inflation adjustment): the debtor must owe less $465,275 in non-contingent, liquidated unsecured debts and less than $1,395,875 in non-contingent, liquidated, secured debts.

June 30, 2024: Alaska Exemptions

Alaska Exemptions: Certain senior care benefits in Alaska are exempt pursuant to Alaska Stat. §§ 47.45.300 through 47.45.309 (cash and prescription drug assistance). This exemption is scheduled to sunset on June 30, 2024.

July 1, 2024: Federal Student Loans; California; Colorado; Montana; Nevada; South Carolina

New Federal Student Loan Income-Driven Repayment Regulations: The Department of Education finalized new Income-Driven Repayment (IDR) regulations in July 2023 establishing a new payment plan (SAVE), limiting access to some of the existing IDR plans, and making a number of improvements to the way IDR plans operate generally. 88 Fed. Reg. 43,820 (July 10, 2023). Some provisions were implemented in 2023, but many will not go into effect until July 1, 2024, including provisions that will cut SAVE payments in half for borrowers with only undergraduate loan debt, shorten the repayment period before forgiveness for borrowers in SAVE for certain low-balance borrowers, and end new enrollments in the PAYE plan, and significantly limit new enrollments in IBR and ICR, among other important changes. See NCLC’s Student Loan Law § 3.5.3.2 for a summary of the changes. 

New Department of Education Gainful Employment (GE) and Financial Value Transparency Rule: Effective July 1, 2024, the Department of Education’s new GE rule establishes an accountability and federal student aid eligibility framework for career training programs (including certificate programs at all postsecondary schools and degree programs at private for-profit colleges). Under this rule, career training programs will be evaluated as to whether they meet the statutory requirement of preparing students for gainful employment in a recognized occupation utilizing 2 new metrics: a debt-to-earnings ratio and an earnings premium test. Programs that fail will lose eligibility to participate in the Title IV federal student aid program. Additionally, the Department will create a Financial Value Transparency Framework that will require institutions to provide detailed information to students that will be posted on a Department website about the costs of education, including typical earnings outcomes, borrowing amounts, cost of attendance, and sources of financial aid. Schools with poor debt-to-earnings ratios will be required to disclose this information to prospective students and to obtain their signature before entering into enrollment agreements. 88 Fed. Reg. 70,004 (Oct. 10, 2023).

New Financial Responsibility Rules to Help Protect Students from School Closures:  Effective July 1, 2024, new Department of Education rules allow the Department to intervene more quickly when an institution shows signs that it is at risk of closure or financial instability.  88 Fed. Reg. 74,568 (Oct. 31, 2023).

New Department of Education Administrative Capability Oversight: Effective July 1, 2024, a new Department of Education rule adds further requirements for institutions to show that they are capable of administering Title IV programs, strengthening protections for students.  88 Fed. Reg. 74,568 (Oct. 31, 2023).

New Department of Education Certification Procedures for Institutions and Transcript Withholding Limits: Under new rules effective July 1, 2024, the Department of Education is establishing a number of additional procedures to better protect students from at-risk or problematic institutions. These new rules include: requiring programs that are new as of July 1, 2024, to show that they meet any required state licensure and programmatic accreditation criteria for students to obtain employment in that field; requiring distance education providers to comply with state closure laws in any state where they serve students; and prohibiting institutions from withholding transcripts for credits paid for with Title IV aid. 88 Fed. Reg. 74,568 (Oct. 31, 2023).

Additional Department of Education Ability-to-Benefit Requirements: Under the Higher Education Act, students who do not have high school diplomas are allowed to enroll in career pathway programs and receive federal financial aid if they can meet 1 of the 3 “ability to benefit” (ATB) alternatives. Under a new ATB rule effective July 1, 2024, the Department will require additional reporting from institutions participating in a state process ATB alternative.  88 Fed. Reg. 74,568 (Oct. 31, 2023).

California Security Deposits on Rental Property: Effective July 1, 2024, California A.B. 12 prohibits a landlord from demanding security for a residential property rental agreement for more than 1 month’s rent. Unless the tenant is a servicemember, 2 months’ rent as security can be demanded if the landlord is a natural person or a limited liability corporation in which all members are natural persons and the landlord owns no more than 2 residential rental properties that collectively include no more than 4 dwelling units offered for rent.

California Junk Fees: California S.B. 478, effective July 1, 2024, prohibits advertising, displaying, or offering a price for a good or service that does not include all mandatory fees or charges other than taxes or fees imposed by a government on the transaction. The law contains a few exceptions and safe harbors. 

California Limits on Charges in Short-Term Lodging: Effective July 1, 2024, California A.B. 537 prohibits a place of short-term lodging from advertising or offering a room rate that does not include all required fees or charges except taxes and fees imposed by the government. Government taxes and fees must be included in the total price to be paid, before the consumer reserves a stay. 

California Right to Repair Law: California S.B. 244, the Right to Repair Act, effective July 1, 2024, requires the manufacturer of certain electronic or appliance products to make available, on fair and reasonable terms, the means to effect the diagnosis, maintenance, or repair of the product. Service repair facilities not an authorized repair provider must disclose this to the consumer and disclose if it uses replacement parts that are used or from a supplier that is not the manufacturer. 

California Short-Term Rentals: California S.B. 644 requires hotels, third-party booking services, hosting platforms, or short-term rentals to allow a reservation to be canceled without penalty for at least 24 hours after the reservation is confirmed if the reservation is made 72 hours or more before the time of check-in. If a consumer thus cancels a reservation, a full refund must be issued within 30 days of the cancellation. The bill applies to any confirmed reservation after July 1, 2024. 

Colorado Opt-Out of Interest Rate Preemption: Although federal law allows out-of-state, state banks and national banks to export their home state interest rate cap when the bank makes loans in other states, federal law allows states to opt out of that right of out-of-state, state banks to export their home state rates to loans made in the opting out state.  Colorado is the first state in many years to do so, opting out of state bank rate exportation effective July 1, 2024.  See Colorado H.B. 23-1229, to be codified at Colo. Rev. Stat. § 5-13-106. 

Colorado Medical Debt: On and after July 1, 2024, Colorado H.B. 23-1215 prohibits a healthcare provider from charging—for mandatory coverage for preventive healthcare services that are provided in an outpatient setting—a facility fee directly to a patient that is not covered by the patient’s insurance. 

Montana Medical Debt: By July 1, 2024, the Montana Department of Public Health and Human Services must adopt rules implementing Mont. Code Ann. § 50-5-121 that establish standards for nonprofit hospitals offer of charity care.

Nevada Earned Wage Advances Exempt from Credit Laws: Nevada S.B. 290, effective July 1, 2024, defines “fee” not to include a voluntary tip, donation, or gratuity. It also provides that an earned wage advance transaction, including both employer-based models and direct-to-consumer advances, is not a loan or other form of credit. It does not place any cap on interest or fees and the state’s small loan law and payday loan law do not apply to earned wage advances. 

South Carolina Consumer Credit: The South Carolina Consumer Protection Code adjusts for inflation every 2 years the statute’s coverage as to the sale of goods and services.  The current $115,000 amount will be adjusted again on July 1, 2024. 

Early July 2024: FCC Order on Robocalls and the Telephone Consumer Protection Act

FCC Order on Robocalls and Telephone Consumer Protection Act (TCPA): One part of an FCC order issued on December 18, 2023, becomes effective 180 days after its publication in the Federal Register (most likely early July 2024).  The order is titled “Targeting and Eliminating Unlawful Text Messages; Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991; Advanced Methods to Target and Eliminate Unlawful Robocalls.”  The part of the order that goes into effect 180 days after the Federal Register notice protects consumers from illegal texts by adopting blocking requirements for providers. Significant other parts of the order that affect TCPA litigation go into effect a year after publication in the Federal Register and are described infra.

July 26, 2024: FTC Guides on Endorsements and Testimonials

New FTC Guides on Endorsements and Testimonials: Effective July 26, 2024, the FTC is adopting revised Guides Concerning the Use of Endorsements and Testimonials in Advertising.  See 88 Fed. Reg. 48,092 (July 26, 2023), to be codified at 16 C.F.R. pt. 255.

July 30, 2024: FTC Rule on Motor Vehicle Sales

New FTC Rule on Motor Vehicle Sales:  A new FTC rule entitled “Combating Auto Retail Scams Trade Regulation Rule” (CARS), to be codified at 16 C.F.R. pt. 463, goes into effect July 30, 2024. See 89 Fed. Reg. 590 (Jan. 4, 2024). 

September 1, 2024:  Colorado Debt Management

The Colorado Debt Management Statute:  The Colorado debt management statute, Colo. Rev. Stat. §§ 5-19-201 to 5-19-242 is scheduled to sunset on September 1, 2024. 

September 10, 2024: Federal Credit Union Rates; New York Banking 

Federal Credit Union Interest Rates: National Credit Union Administration authorization to charge 28% APR on certain short-term loans (called “payday alternative loans” or PALs) expires on September 10, 2024, unless renewed.

New York Banking Parity statute:  N.Y. Banking Law § 12-a (McKinney) that gives New York state-chartered banks similar rights to national banks expires and will be deemed repealed September 10, 2024.

September 30, 2024:  Fresh Start Program for Federal Student Loans 

Relief for Student Loan Borrowers in Default:  Current special protections for student loan borrowers in default require an affirmative opt-in to the “Fresh Start” program to maintain those protections, and that opt-in right is due to expire on September 30, 2024. The Fresh Start program allows eligible defaulted borrowers to request removal of their loans from default. The program also provides several automatic benefits to eligible defaulted borrowers during the Fresh Start period, including temporary suspension of collections, restoration of access to financial aid, and protection from negative credit reporting. If eligible borrowers do not request removal from default by September 30, 2024, their account will be placed back into default for collection and resumption of negative credit reporting. 

October 30, 2024:  FHA Mortgages

FHA Mortgage Modifications: HUD Mortgagee letter 2023-03 (Feb. 13, 2023) requires servicers to evaluate FHA mortgage borrowers for COVID-19 loss mitigation options regardless of whether the borrower’s hardship resulted from the pandemic. This policy extends until October 30, 2024. 

December 1, 2024: Bankruptcy Rules; Federal Lifeline

Bankruptcy Rules: Effective December 1, the bankruptcy rules, will be restyled using the same style guidelines that were used for the Appellate, Criminal, Civil, and Evidence Rules.  In some cases, the restyling will change the location and numbering of provisions within a rule, but the style changes will not be intended to change substantive meaning.  

Bankruptcy Rules: Bankruptcy Rule 1007(b)(7) will no longer require that debtors file an official form to establish that they completed the postpetition financial management course. Instead, a certificate of completion issued by the course provider must be filed if the course provider does not submit it directly to the court.  This should help avoid cases being closed without a discharge because the debtor had failed to sign and file the official form. 

Bankruptcy Rules: Bankruptcy Rule 7001 generally requires that any action to recover money or property must be sought in an adversary proceeding rather than in a contested matter. Effective December 1, 2024, Rule 7001(a) is amended to create an exception from this requirement, permitting an individual debtor to proceed by motion when seeking turnover under § 542(a) of tangible personal property such as an automobile.  This is intended to create a simpler process for debtors to recover property that has been repossessed or seized prepetition, in response to City of Chicago v. Fulton, 141 S. Ct. 585 (2021).

Minimum Service Standards for Lifeline Devices:  Effective December 1, 2024, telecommunications carriers must ensure under the lifeline program that at least 75% of the devices under that program are capable of being used as a hotspot (up from 60%).  See 47 C.F.R. § 54.408(f)(3).

December 31, 2024: Direct Express Card; Connecticut Data Privacy

U.S. Treasury’s Direct Express Card: An important option for the unbanked is that Social Security, SSI, and other federal benefits can be loaded to a federal Direct Express Card, operated under contract with Comerica Bank.  Treasury’s contract with Comerica expires at the end of 2024, so that other banks can compete to administer the Direct Express Card, potentially with different terms than the existing card.

Connecticut Data Privacy: The Connecticut Data Privacy Statute, Conn. Gen. Stat. § 42-526, et seq. provides for state attorney general enforcement, but provides a 60-day right to cure period for alleged violations.  The right to cure sunsets on December 31, 2024. 

January 1, 2025: California Imprisonment for Debt

California Imprisonment for Debt: Effective January 1, 2025, California A.B. 1119 prohibits a court from issuing a warrant for the arrest of a judgment debtor in a case concerning consumer debt based on the judgment debtor’s failure to appear or failure to file a judgment debtor’s financial affidavit. Instead, it authorizes the court to issue an order to show cause to determine whether a warrant to compel the judgment debtor’s attendance should be issued. The bill extends the notice of the examination required to be given to the judgment debtor to not less than 30 days before the examination and authorizes a judgment debtor in a case involving consumer debt to serve a financial affidavit signed under penalty of perjury, and file with the court a notice of financial affidavit and proof of service in lieu of appearing for the examination. The court would then cancel the financial examination unless the judgment creditor files, under oath, a motion regarding the need for the debtor to appear for a debtor’s examination, and the court determines there is such a need. 

Early January 2025: FCC Order on Robocalls and the Telephone Consumer Protection Act

FCC Order on Robocalls and Telephone Consumer Protection Act (TCPA): Significant provisions of an FCC order issued on December 18, 2023, become effective 1 year after its publication in the Federal Register and after OMB approval (most likely in early January 2025).  The order is titled “Targeting and Eliminating Unlawful Text Messages; Rules and Regulations Implementing the Telephone Consumer Protection Act of 1991; Advanced Methods to Target and Eliminate Unlawful Robocalls.”  The order makes it clear that prior express written consent to receive prerecorded telemarketing calls to a cell phone or residential line can only be given to one identified seller at a time. This ruling unequivocally rejects the argument that a consumer’s single click on a lead generator’s website can authorize prerecorded telemarketing calls on behalf of multiple sellers—sometimes thousands, all hidden behind a hyperlink. The order also emphasizes that this one-to-one consent through agreements between the consumer and the seller is currently required for calls to DNC-registered lines, and it reiterates the requirements that electronic transactions in which consent is obtained must comply with the federal E-Sign Act. As described supra, other parts of this order that require providers to block certain texts will go into effect 180 days after the Federal Register notice.

Published: December 27, 2023