What are “Essential” Consumer Financial Services Businesses?

Each day, new jurisdictions issue orders for businesses to cease operations and for residents to stay at home. The orders typically exempt “essential businesses,” including certain businesses and workers in the financial sector. Those jurisdictions recognize that consumer financial services businesses provide essential access to deposits, credit, and payment systems. Often, though, the orders’ terminology is nonspecific with regard to the particular types of businesses that are essential, so the exact parameters for the “essential business” exemption in each jurisdiction are not clear. The penalties for failure to comply can be serious.

Read more in Mayer Brown’s COVID-19 Legal Update.