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CBA responded to the CFPB’s Advanced Notice of Proposed Rulemaking (ANPR) on debt collections. In its notice, the Bureau cites it is the first agency with the authority to issue substantive rules under the Fair Debt Collection Practices Act (FDCPA), a law governing the practices of third-party collectors and debt buyers. The Bureau may address first-party debt collection activities under its unfair, deceptive and abusive practices (UDAAP) authority. The ANPR is the Bureau’s initial step towards issuing new rules regulating the relationship between creditors, third-party debt collectors and consumers.
- August 8, 2016Aug. 2 — Banks may have dodged the brunt of new Consumer Financial Protection Bureau proposals on debt collection, but they won't escape compliance costs for documentation requirements third-party collectors face under the agency's regulatory framework. The bureau announced a regulatory outline July 28 that would overhaul the debt collection market by capping collector contact attempts and by...
- August 1, 2016Debt collectors are bracing for the impact from the latest sweeping new move by the Consumer Financial Protection Bureau, an effort to crack down on harassment and abuses by companies trying to collect from consumers. The firms that collect outstanding debts on behalf of lenders say they're worried about the new rules the bureau is proposing, which would limit the ways they can contact debtors...
- July 28, 2016Washington, D.C. (July 28, 2016) – Richard Hunt, President and CEO of the Consumer Bankers Association (CBA), today released the following statement in response to the CFPB’s issuance of a SBREFA outline on debt collection. “We appreciate the Bureau’s efforts to tailor these rules and set clear expectations for consumers and industry. The Bureau recognizes the importance of distinguishing between...
- July 28, 2016On Thursday, July 28, 2016, the CFPB held a field hearing in Sacramento, CA on debt collection reforms. The Bureau also released an outline of proposals for third-party debt collectors as well as a study on its operations. The outline will be the subject of a forthcoming Small Business Regulatory Enforcement Fairness Act (SBREFA) panel for debt collectors and debt buyers. The Bureau is expected...July 15, 2016The CFPB announced it will hold a field hearing in Sacramento, CA on Thursday, July 28, 2016, focused on debt collection. The hearing will likely focus on third-party debt collectors, collection attorneys and debt buying firms. The Bureau has not released a list of participants, though such hearings traditionally include representatives of various consumer groups and industry participants to...April 25, 2016On Monday, April 25, 2016, the CFPB entered into a consent order with a debt collection law firm Pressler & Pressler LLP and debt buying firm New Century Financial Services, Inc. The Bureau alleges the firm engaged in violations of the Fair Debt Collection Practices Act and the ban on unfair, deceptive or abusive acts and practices when it “filed hundreds of thousands of lawsuits against...March 30, 2016On Wednesday, March 30, 2016, the CFPB issued a consent order to stop a student loan debt relief scam which allegedly tricked borrowers into paying fees for federal loan benefits and misrepresented to consumers it was affiliated with the U.S. Department of Education. The CFPB ordered the company, Student Aid Institute, Inc., and its CEO, Steven Lamont, to pay a penalty, halt debt relief services...March 29, 2016On Tuesday, March 29, 2016, the CFPB released its latest monthly consumer complaint snapshot , focusing this month on debt collection and the state of Florida. The Bureau received 834,400 complaints across all covered products as of March 1, 2016, of which debt collection complaints represent 26 percent (or 219,200). The most frequent complaints included continued attempts to collect debt not...March 18, 2016On Friday, March 18, 2016, a federal district court entered final judgment against debt relief company Morgan Drexen, Inc., resolving a lawsuit filed by the CFPB in August of 2013. The Bureau’s lawsuit against Morgan Drexen alleged the company charged illegal upfront fees and deceived consumers. The court found the company violated federal law, prohibited Morgan Drexen from collecting any further...March 17, 2016On Tuesday, March 15, 2016, the CFPB requested a federal district court enter a final judgment and order the shutdown of Student Loan Processing.US, a student debt relief operation. The company allegedly charged customers millions of dollars in illegal upfront fees for federal student loan services. If the proposed consent judgment is entered by the court, Student Loan Processing must close...