CUNA and state credit union leagues attended a Consumer Financial Protection Bureau (CFPB) town hall Wednesday in Philadelphia on the CFPB’s recently issued proposal on debt collection practices. The event included a panel with representatives from debt collection associations, consumer advocates and public interest attorneys.
CFPB Director Kathy Kraninger, in her remarks prior to the panel, said the CFPB’s rule is intended to provide “clear rules of the road where consumers know their rights and debt collectors know their limitations.”
She also noted the challenges collectors face when dealing with a statute, in this case the Fair Debt Collection Practices Act, (FDCPA) that is more than 40 years old. The proposed rule is intended to create standards for the FDCPA’s application to modern technology and provide clarity in areas where clarity was lacking.
The CFPB’s proposed rule would only apply to FDCPA-covered debt collectors, which means most impacts on credit unions would be indirect.
CUNA expressed appreciation Wednesday for the rule’s focus on the practices of underregulated debt collectors.
Additional details on the town hall can be found on CUNA’s Removing Barriers Blog.