CFPB sets debt collection hearing
The Consumer Financial Protection Bureau (CFPB) is expected to release its Small Business Regulatory Enforcement Fairness Act (SBREFA) proposal on debt collection in conjunction with a July 28 field hearing in Sacramento, Calif. CUNA has met with the bureau a number of times to address the forthcoming rulemaking, most recently in May.
CUNA has been told by the CFPB that any debt collection proposals will not include changes that impact first-party creditors. Credit unions are not expected to be included in a SBREFA panel on debt collection that is expected to be convened in August, which CUNA hopes is an indication that the bureau is considering exempting credit unions from the rulemaking.
The rulemaking would make changes to the Fair Debt Collection Practices Act, and first-party creditors were deliberately excluded from the statute by Congress.
The CFPB has said it will likely hold a separate SBREFA panel for first-party creditors sometime in the future, so it remains unclear how credit unions will be impacted by any CFPB policymaking concerning debt collection.
The CFPB issued an advance notice of proposed rulemaking on debt collection in 2014, providing a list of 162 questions related to debt collection.
The field hearing is scheduled for July 28, starting at 2 p.m. (ET). It will be streamed on the bureau’s website.