CPFB indicates debt collection proposal forthcoming
The Consumer Financial Protection Bureau (CFPB) indicated in its report on administration of the Fair Debt Collection Practices Act that the bureau intends to issue a proposed rule on debt collection. According to the bureau, it will address communications practices and consumer disclosures relating to the collecting of debts. CUNA expects it will be focused on the action of third-party debt collectors.
CUNA, in letters and in-person meetings with CFPB staff including Director Kathy Kraninger, has requested a debt collection rulemaking focus on practices of third-party debt collectors, which have been the subject of more frequent consumer complaints.
“The bureau’s rulemaking in this area should be reasonable and tailored to mitigate any potential indirect impacts on credit unions and other lenders,” CUNA wrote in a letter to Kraninger shortly after she was confirmed.
The Illinois Credit Union League also addressed debt collection during a February meeting with Kraninger.