Consumer Law Rights Taking Effect In 2022

This article lists federal and state consumer law rights scheduled to go into effect or expire, during the period from November 30, 2021, through January 1, 2023. Other consumer law changes will be enacted later in 2022 and will go into effect in 2022; this article lists changes whose effective dates have already been scheduled.

Significantly, many changes involve the sunset of a statutory provision, or the expiration of protections related to COVID-19. The expiration of certain of these rights may be postponed and some statutory provisions may be revived. Litigation may affect some of the changes as well.

NCLC encourages readers to submit other consumer law changes—going into effect in 2022, particularly new state statues—to be added to this article. Send suggestions to publications@nclc.org.

November 30, 2021: Debt Collection

CFPB Debt Collection Rules: CFPB rules extensively amending Regulation F, 12 C.F.R. pt. 1006, implementing the Fair Debt Collection Practices Act, went into effect on November 30, 2021. Go here for an overview of these provisions and links for further information.

December 1, 2021: Bankruptcy; California Foreclosures; Illinois Medical Debt

Bankruptcy Rules: Amendments to Bankruptcy Rules 2005, 3007, 7007.1, and 9036 were effective on December 1, 2021. The Rule 3007 change clarifies that the special service method required by Rule 7004(h) must be used for service of objections to claims only on insured depository institutions as defined in section 3 of the Federal Deposit Insurance Act, 12 U.S.C. § 1813. Thus, it applies only to insured depository institutions that are insured by the Federal Deposit Insurance Corporation and does not include credit unions, which are instead insured by the National Credit Union Administration. A credit union, therefore, may be served with an objection to a claim according to Rule 3007(a)(2)(A)—by first-class mail sent to the person designated for receipt of notice on the credit union’s proof of claim.

The Rule 9036 change encourages use of electronic noticing and service, including the ability to serve or provide notice to registered users of the court’s electronic filing system by filing documents with that system. Also permitted is notice and service by electronic means to any entity that has consented in writing to such electronic means.

California Foreclosures: California AB 832 (June 28, 2021) further extends to December 1, 2021, the statutory requirement from 2020 that mortgage servicers provide borrowers with written notices of grounds for denial of COVID-related forbearance relief.

Illinois Medical Debt: HB 3803, effective December 1, 2021, requires that a hospital proactively offer information on charity care options available to uninsured patients, regardless of their immigration status or residency.

December 27, 2021: Bankruptcy

Bankruptcy Amendments: Amendments relating to COVID-19 are set to expire to Bankruptcy Code §§ 366, 501, 502, 525, 541, 1325, and 1328. Expiring provisions include those permitting debtors to receive a chapter 13 discharge despite missed mortgage payments, prohibiting debtors from being denied a CARES Act forbearance if they have filed bankruptcy or received a discharge, permitting consumers to have utility service maintained or restored after filing bankruptcy without paying a deposit, and creating a procedure for filing a supplemental proof of claim for amounts forborne under a mortgage forbearance. See Pub. L. No. 116-260, div. FF, tit.10 § 1001 (2020), as explained here.

December 31, 2021: Federal and Oregon Mortgage Servicing

Mortgage Servicing: Expiration on December 31, 2021, of the CFPB’s temporary RESPA Reg. X § 1024.41(f)(3) that required servicers to comply with additional procedural safeguards before initiating foreclosure (effective Aug. 31, 2021), as explained here.

Oregon Foreclosures: Expiration on December 31, 2021, of Or. H.B. 2009, providing for a foreclosure moratorium and a borrower’s substantive right to certain COVID-19 loss mitigation relief measures. Executive Order 21-30 (August 16, 2021) extended H.B. 2009 only until December 31, 2021.

January 1, 2022: Surprise Medical Bills; TILA; FCRA; CLA; HMDA; Mortgages; California, Hawaii, Illinois, Maryland, Minnesota, Tennessee 

Surprise Medical Bills: A bill providing protections for patients from surprise medical bills is effective for insurance plan years beginning on January 1, 2022. See Consolidated Appropriations Act of 2021, No Surprises Act, div. BB, tit. I (p. 1578 of the version linked here). The No Surprises Act creates a negotiation requirement and an arbitration system between health care providers and insurance companies to settle many surprise billing disputes. The law applies to many health care providers including air ambulance companies, but not to ground ambulance services. The law applies to group or individual health insurance plans, including the self-funded plans offered by large employers, but certain types of coverage or products that are not legally considered to be group or individual health insurance plans (such as short-term plans or religious health care programs) are not included.

Truth in Lending Act Exemption: On January 1, 2022, the TILA exemption for an amount financed over a dollar amount increased from $58,300 to $61,000. See 86 Fed. Reg. 67,851 (Nov. 30, 2021). This exemption does not apply to home-secured credit or student loans.

Truth in Lending Act Credit Card Safe Harbors: On January 1, 2022, the open-end credit safe harbor for a first violation penalty fee increased to $30 and for a subsequent violation the penalty fee increased to $41. 86 Fed. Reg. 60,357 (Nov. 2, 2021).

Truth in Lending Act HOEPA Loans: On January 1, 2022, the adjusted total loan amount threshold for high-cost mortgages increased to $22,969, and the adjusted points and fees dollar trigger for high-cost mortgages increased to $1,148. 86 Fed. Reg. 60,357 (Nov. 2, 2021).

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. For 2022, these thresholds increase: for a loan amount of $110,260 or more, 2.25 percent of the total loan amount; for a loan amount of greater than or equal to $66,156 but less than $110,260, 3.5 percent of the total amount; and for a loan amount less than $66,156, 6.5 percent of the total amount. 86 Fed. Reg. 60,357 (Nov. 2, 2021).

Truth in Lending Act Appraisal Requirements: Effective January 1, 2022, the exemption threshold for special appraisal requirements for “higher-risk mortgages” increases from $27,200 to $28,500. See 86 Fed. Reg. 67,843 (Nov. 30, 2021).

Fair Credit Reporting Act File Disclosure: The maximum charge to a consumer under the FCRA for file disclosure increases to $13.50. See 86 Fed. Reg. 67,649 (Nov. 29, 2021).

Consumer Leasing Act Exemption: On January 1, 2022, the Consumer Leasing Act exemption for consumer leases exceeding a total contractual obligation amount increased from $58,300 to $61,000. See 86 Fed. Reg. 67,847 (Nov. 30, 2021).

HMDA Reporting Requirements: HMDA Regulation C excludes from its data provision requirements institutions that extend credit only in a limited number of transactions. As of January 1, 2022, for open-end lines of credit, the institution must now extend less than 200 transactions, down from 500. See 12 C.F.R. § 1003.2.

Uniform Residential Loan Application Form: Effective January 1, 2022, use of a Uniform Residential Loan Application form is no longer a safe harbor for certain requirements. See 82 Fed. Reg. 45,680, 45,695 (Oct. 2, 2017).

California Licensing of Debt Collectors, Debt Buyers: Senate Bill 908, signed into law on September 25, 2020, and effective January 1, 2022, creates a new licensing law applicable to debt collectors and debt buyers, administered by the Department of Financial Protection and Innovation. The new licensing requirement also applies to law firms and management companies involved in the collection of debt, including the collection of delinquent homeowner association assessments.

California Privacy Rights: California Proposition 24 created the California Privacy Rights Act (CPRA). While the Act does not go into effect until January 1, 2023, it applies to collection of data starting on January 1, 2022. Provisions include limits on the sharing of a consumer’s information on the consumer’s request, with an opt-out used for marketing, further limits on collecting data on those under sixteen years old and the consumer’s ability to correct information. Proposition 24 will supersede the California Consumer Privacy Act, that went into effect on January 1, 2020.

California Medical Debt: California AB 1020, effective January 1, 2022, amends Cal. Civ. Code §§ 1788.14, 1788.52, and 1788.58, adds Cal. Civ. Code. §1788.185, amends Cal. Health & Safety Code §§ 127400, 127401, 127405, 127410, 127420, 127425, 127435, 127440, and 127444, and adds Cal. Health & Safety Code § 127436. Among the changes, it ensures more people are eligible for financial assistance at hospitals, makes it more likely that the assistance will be accessed, and restricts the circumstances in which medical debt may be sold to a debt buyer.

California Identity Theft Claims: Effective January 1, 2022, California AB 430 makes it mandatory for creditors, debt collectors, and debt buyers to accept an FTC Identity Theft Report in lieu of a police report as sufficient for making a claim of identity theft. Signed into law on September 23, 2021, the new law amends Cal. Civ. Code §§ 1788.18, 1788.61, 1798.92, and 1798.93 and Cal. Penal Code § 530.8.

California PACE Loans: California AB 790, signed into law on October 6, 2021, and effective January 1, 2022, amends the California Consumer Legal Remedies Act, Cal. Civ. Code § 1770, clarifying that PACE loans are covered by the provision making it an unfair or deceptive business practice to make a home solicitation to a senior citizen to sell financing for home improvements when that financing would encumber a residence, and where the transaction would violate the federal Truth in Lending Act or other federal laws.

California Debt Settlement: California AB 1405 enacts the California Fair Debt Settlement Practices Act, added as Cal. Civ. Code § 1788.300, et. seq., to provide various protections concerning a debt settlement offer, including disclosures, prohibited practices, cancellation rights, and a private right of action. Signed into law on October 4, 2021, the bill is effective January 1, 2022.

California Home Improvements: California SB 757, effective January 1, 2022, requires a home improvement salesperson to identify to the consumer the business name and license number of the contractor they are representing for that specific transaction, and subjects the home improvement contractor to discipline for failing to do so. The law was passed in conjunction with the creation of a $5 million fund to help victims of solar installation fraud.

California Financing Law: Repeal of the exemption from the California Financing Law for persons who make one loan in a twelve-month period if the loan is a commercial loan is effective January 1, 2022. See Cal. Fin. Code § 22050.5.

California Nonbank Bank Accounts: Effective January 1, 2022, California SB 497 amends Cal. Fam. Code § 17325, Cal. Unemp. Ins. Code §§ 1339.1 and 2701, and Cal. Welf. & Inst. Code § 11006.2, all relating to direct deposit of government payments. The bill closes a loophole that allowed nonbank prepaid card companies to evade California laws that prohibit overdraft fees on prepaid cards used to receive public assistance, unemployment compensation, or state-distributed child support payments by converting the accounts to demand deposit accounts.

Hawaii Installment Loans: Effective January 1, 2022, Haw. Rev. Stat. §§ 480J-1 to 480J-45 repeals the state’s payday loan law (but not other existing lending law). It instead adds a new provision regulating the rates for any loan up to $1,500, with a loan term up to twelve months. The maximum allowed is 36% plus a monthly charge of $25 to $35, and where the finance charge cannot exceed 50% of the original principal. The APR for a $500 loan is 146.4%.

Illinois Medical Debt: Ill. Public Act 102-0581, effective Jan. 1, 2022, requires hospitals to describe activities that aim to address health disparities, advance health equity, and improve community health; changes the maximum collectible amount from 25% of family income to 20%; and provides discounts based on income.

Maryland Medical Debt: Effective January 1, 2022, Maryland HB 565 requires hospitals to establish financial assistance policies, including free or reduced cost care, depending on income and to disclose those policies to patients; prohibits the sale of hospital debt, the charging of interest prior to obtaining a judgment, or the reporting to a credit reporting agency for the first 180 days; and includes other provisions concerning medical debt.

Minnesota Debt Buyers: Effective January 1, 2022, debt buyers in Minnesota must be licensed as debt collectors. See amendment to Minnesota Statutes 2020, § 332.31(3).

Tennessee Homestead Exemption: Effective January 1, 2022, Tennessee increased its homestead exemption from $25,000 (for a debtor with a minor child) to $35,000 ($52,500 for joint debtors). 2021 Tenn. Laws Pub. Ch. 301 (S.B. 566), amending Tenn. Code § 26-2-301.

January 15, 2022: New York Foreclosures

New York Foreclosures: N.Y. S.8428 (2020) remains in effect until the expiration of all New York executive orders that limit economic activity in the state due to the COVID-19 pandemic. The most recent executive order stayed foreclosures in New York through January 15, 2022.

New York Foreclosures: N.Y. S 12031-01-1 (Sept. 2, 2021) extends the moratorium on mortgage foreclosure proceedings and tax sales to January 15, 2022.

February 4, 2022: D.C. Foreclosures

District of Columbia Foreclosures: D.C. Code § 42-815.05; Act 24-178 (Oct. 7, 2021) provides that, during the period from March 11, 2020, until February 4, 2022, certain residential foreclosures may not be initiated or conducted, and no condominium sale may be conducted.

District of Columbia Foreclosures: D.C. Act 23-286 (2020) remains in effect until sixty days after local declarations of emergency end. By resolution, the D.C. Council imposed a moratorium on foreclosures until February 4, 2022. The moratorium order specifically references the need to delay foreclosure sales until the apparatus for distributing Homeowner Assistance Funds (HAF) is in operation. See D.C. R.60 Council Resolution 24-25 (Oct. 5, 2021).

March 27, 2022: Bankruptcy

Bankruptcy Code: Amendments are set to expire to Bankruptcy Code §§ 101, 1325, 1329(d) to protect debtors’ benefits related to the pandemic and not to treat them as disposable income, to allow more flexibility in modifying confirmed chapter 13 plans, and to increase the debt limit for subchapter V cases. See Pub. L. No. 116-136 § 1113 (2020), described here.

April 1, 2022: Bankruptcy; Truth in Lending Act

Bankruptcy Code: Extensive changes to dollar amounts throughout the U.S. Bankruptcy Code will be effective as of April 1, 2022. The amounts will be determined early 2022 based on inflation.

Truth in Lending Act Transition from LIBOR: CFPB amends Regulation Z, effective April 1, 2022, to provide guidance as to transition to new adjustable-rate credit indexes due to the impending elimination of the LIBOR index used in many credit agreements. See 86 Fed. Reg. 69,716 (Dec. 8, 2021)..

April 6, 2022: New York Collection Lawsuits

New York Consumer Collections: The portion of the New York Consumer Credit Fairness Act that goes into effect on April 6, 2022, reduces the statute of limitations in a consumer credit collections case from six years to three years and the consumer’s payment toward the debt or affirmation of the debt does not revive or extend the limitations period.

April 8, 2022: D.C. Foreclosures

District of Columbia Foreclosures: D.C. Super. Court Order (Nov. 21, 2021) stays all evictions and foreclosures “to the extent required by statute” until at least April 8, 2022.

May 1, 2022: Student Loans

Federal Student Loans: On December 22, 2021, the Biden Administration announced that the scheduled expiration date for the general forbearance on repayment of federal student loans is extended through May 1, 2022—suspension of loan payments, a 0% interest rate, stopped collections on defaulted loans. Obligations, rights, and other information for borrowers exiting the forbearance are set out in a Department of Education website.

May 6, 2022: New York Collection Lawsuits

New York Consumer Collections: The portion of the New York Consumer Credit Fairness Act that goes into effect on May 6, 2022, requires original creditors and third-party debt collectors to include certain information and documents when filing a collection action and provide certain information and documents when seeking a default judgment.

June 1, 2022: Colorado Medical Debt

Colorado Medical Debt: Most provisions of HB21-1198 go into effect on June 1, 2022. The bill deals with healthcare billing requirements for indigent patients receiving services not reimbursed through the Colorado indigent care program, and, in connection therewith, establishing procedures before initiating collection proceedings against a patient.

June 13, 2022: CFPB Payday Lending Rule

CFPB Payday Lending Rule: The CFPB’s amended Payday, Vehicle Title, and Certain High-Cost Installment Loans (Payday Lending Rule), 12 C.F.R. pt. 1041 is scheduled to go into effect June 13, 2022. A federal court had stayed the original 2017 rule and the CFPB subsequently rescinded the underwriting provisions of the rule. The court then ordered that the stay be lifted as of June 13, 2022, for the remaining payment provisions prohibiting covered lenders from making more than two attempts to withdraw pre-authorized payments from a consumer’s account if two consecutive withdrawal attempts fail due to a lack of sufficient funds. Pending litigation is seeking a further stay as to the rule’s payment provisions and consumer groups in litigation are seeking reinstatement of the underwriting provisions.

July 1, 2022: California, Mississippi, and South Carolina Legislation

California Private Student Loans: The California Private Student Loan Collections Reform Act goes into effect on July 1, 2022. (AB 424, signed into law on October 6, 2021, adding Cal. Civ. Code § 1788.200, et. seq.). The new law places new documentation requirements on private student loan lenders before they may initiate any collection activity. It also requires student loan settlements by private student loan lenders and debt collectors to be recorded in open court. It provides for a private right of action for violations of the statute.

California Debt Collection: SB 531, effective July 1, 2022, adds Cal. Civ. Code § 1788.14.5, to require debt collectors to provide more information about themselves and the debt that they allege the consumer owes, and to show that they have authority to collect the debt.

California Automatic Renewal Law: AB 390, signed into law on October 4, 2021, and effective July 31, 2022, amends the California Automatic Renewal Law, Cal. Bus. & Prof. Code § 17602, to require businesses to send notice to consumers explaining how they can cancel online subscriptions before the expiration of a free trial or promotional price that lasts more than thirty-one days. Users who sign up online must be able to cancel their subscription immediately and at will by either a direct link or button on the website or a preformatted email that the consumer can send without adding additional information. Businesses will be required to send a reminder notice to subscribers fifteen to forty-five days before renewal of a subscription with an initial term of one year or longer.

Mississippi Loan Availability Act: The Act at Miss. Code Ann. § 75-67-639 sunsets on July 1, 2022. This law was scheduled to sunset as of July 1, 2018, but in 2018 the sunset date was extended to July 1, 2022, by H.B. 811, 2018 Leg., Reg. Sess. (Miss. 2018).

Mississippi Debt Relief: The Mississippi debt relief provider statute, Miss. Code Ann. § 8-22-31, is scheduled to sunset on July 1, 2022.

South Carolina Retail Installment Sales: The South Carolina upper limit for transactions covered by its retail installment sales act increases from $105,000, based upon inflation. So does the $21 maximum late fee. See https://consumer.sc.gov/business-resourceslaws/dollar-amount-adjustment.

September 30, 2022: VA Mortgage Forbearance; Student Loans

VA Mortgage Forbearance: VA expects all COVID-19 forbearance periods to end by September 30, 2022. See VA Circular 26-21-20 (Sept. 29, 2021).

Student Loans: Various waivers expire on September 30, 2022, regarding “affected individuals” (affected individuals include those on active-duty military status). Expiring waivers include waiver of the requirement to make three reasonable and affordable payments as a prerequisite to obtain a loan consolidation if the borrower does not opt for an income dependent repayment plan; waiver concerning financial need for federal student loans; waiver of requirement of uninterrupted service for teacher loan forgiveness; and waiver of certain students having to repay Pell grant overpayments. See 82 Fed. Reg. 45,465 (Sept. 29, 2017).

October 1, 2022: TILA; Mortgage Servicing; Conn. Medical Debt

Truth in Lending Act Qualified Mortgage Definition: The CFPB has delayed until October 1, 2022, the mandatory compliance date of a qualified mortgage definition rule relating to the ability to repay. See 86 Fed. Reg. 22,844 (April 30, 2021).

Mortgage Servicing: Expiration of the mortgage servicing requirement that live contact be made with borrowers not in forbearance. See Reg. X § 1024.39(e)(1) (effective Aug. 31, 2021, until Oct. 1, 2022), as explained here.

Mortgage Servicing: Expiration on October 1, 2022, of the mortgage servicing requirement concerning provision of additional information to borrowers in a COVID-19 forbearance program. Reg. X § 1024.39(e)(2) (effective Aug. 31, 2021, until Oct. 1, 2022), as explained here.

Connecticut Medical Debt: Effective October 1, 2022, Conn. Pub. Act 21-12 limits credit reporting of hospital debt for one year, prohibits foreclosure of a primary residence to pay a hospital bill, or garnish wages of an individual eligible for the hospital bed fund.

October 28, 2022: VA Loan Modifications

VA Loan Modifications: Availability of the VA partial claim payment (VAPCP) expires on October 28, 2022. See 38 C.F.R. § 36.4809.

December 1, 2022: Bankruptcy

Bankruptcy Rules: Changes to Bankruptcy Rules 1007, 1020, 2009, 2012, 2015, 3002, 3010, 3011, 3014, 3016, 3017.1, 3017.2 (new), 3018, 3019, 5005, 7004, and 8023 are expected to become effective on December 1, 2022.

December 27, 2022: Bankruptcy

Bankruptcy Amendments: Sunset of amendments to Bankruptcy Code §§ 364, 365, 503, 507, 547, 1191, 1225, and 1325 regarding small business debtors under subchapter V and loans under the Paycheck Protection Program. Pub. L. No. 116-260 (Dec. 27, 2020).

December 31, 2022: USDA Loan Modifications; Student Loans

USDA Loan Modifications: USDA COVID-19 special relief measure expires on December 31, 2022.

Student Loan Discharge Taxability: Federal student loan death and disability discharges are not taxable, but because the tax provision is scheduled to expire at the end of 2025, borrowers subject to the three-year monitoring period who have their initial discharge approved after December 31, 2022, could be subject to the tax unless the provision is extended or made permanent. For more information, see here.

January 1, 2023: California Privacy, Coerced Debt; Michigan Loans

California Privacy Rights: California Proposition 24 created the California Privacy Rights Act (CPRA). The Act goes into effect on January 1, 2023. Provisions include limits on the sharing of a consumer’s information on the consumer’s request, with an opt-out used for marketing, further limits on collecting data on those under sixteen years old and the consumer’s ability to correct information. Proposition 24 will supersede the California Consumer Privacy Act, that went into effect on January 1, 2020.

California Coerced Debt: California AB 1243, effective January 1, 2023, signed into law on September 23, 2021, will amend, repeal, and add Cal. Welf. & Inst. Code § 15657.03, to provide a restraining order remedy for elder and dependent adult financial abuse to allow judges issuing elder and dependent adult abuse restraining orders to make similar findings that specific debts are the result of coerced debt. This will give the protected party an additional tool to dispute debts with creditors, collectors, and/or credit reporting agencies.

Michigan’s $400 limit on loan processing fees: Will be increased based upon inflation. See In re CPI-Adjusted Regulatory Loan Act Loan Processing Fee, Bulletin 2021-11-CF (Mich. Dep’t of Ins. & Fin. Servs. Mar. 8, 2021).