WASHINGTON (3/4/14)--The Credit Union National Association agrees that unscrupulous business practices, including those performed by certain third-party debt collection agencies, should not be tolerated. However, CUNA urges regulators to address those issues using a targeted approach that hones in on the third-parties that engage in abusive and/or illegal collection efforts.
CUNA, addressing a 162-question Consumer Financial Protection Bureau debt collection advance notice of proposed rulemaking, told the CFPB that consumers and creditors both would best be served by a regulatory approach that focuses on problem cases rather than on the creation of broad new rules that affect good and bad actors similarly.
The CUNA comment letter underscored that credit unions that are collecting their own debts should be treated differently than third-parties that are in the business of debt collections.
"As member-owned, not-for-profit financial cooperatives, credit unions are distinct from most other types of financial service providers. Repeatedly, CFPB Director (Richard) Cordray has commended credit unions for their practices and urged them to 'keep doing what you are doing,'" the CUNA letter reminded. "We urge the agency to reflect that view in all rulemakings, including any new rules that are developed regarding debt collection practices."
To read CUNA's complete comment letter and its answers to all the CFPB inquiries, use the resource link.